Arnold Doubled The Price and Sold in 31 Days
Arnold Doubled The Price and Sold in 31 Days
Even with the best-laid plans, business owners still need help…
And so it was for William*, the owner of a highly profitable million dollar plus importing and distribution business. After 10 years, he wanted to sell and spend more time with his family.
He’d done all the right things…
Developed an exit plan, understood the sales process, and prepared all the buyer's information so the business was ready to go. He’d even listed the business with a large business brokerage.
But after a year, all he’d heard were crickets.
At this point, William was very frustrated!
In Steps Arnold P Kelsey and Doubles the Price
Desperate to get his plan back on track, he turned to LinkedIn looking for hope. This is where he came across Arnold P Kelsey of ABS Business Sales posting knowledgeable content and reached out.
Arnold quickly identified two issues.
Firstly, the listing was poorly written and failed to showcase the business properly, resulting in little interest.
Secondly, Arnold noticed the business was undervalued, so it was not targeting the right type of buyer or getting the seller the money he deserved.
Within two weeks, Arnold proceeded to list the business at two times the current asking price.
Enquiries Started Rolling In
Within 31 days, the business was under contract. “I had two other buyers ready to buy with a back-up contract in place,” Arnold reported.
“The only hiccup was that the buyer didn’t have all the funds needed to purchase”
“I negotiated with William to allow the buyer to pay off the stock as it was sold, which wasn’t long.”
Of course, William was over the moon with the result, even though he had left at least 50% on the table, with stock to be paid off. He had sold for twice what he planned to receive and could now enjoy that family time he had been wanting for over a year.
The buyer was equally pleased.
He already owned another business in a totally unrelated sector, but as Arnold commented, “He was extremely pleased as he knew he had bought a fantastic business at a very good price.”
Lessons Learnt
Arnold reflected on the lessons from this transaction,
“When it comes to selling multi-million businesses, engage a business broker who shines in those transactions. I have seen a number of transactions fail because the broker was not able to liaise with the high-profile advisors who are usually involved in high-value transactions.”
“A broker might be very successful selling low-value businesses but will often fail with the high-value ones.”
So wins all round was the end result.
A seller rewarded for the hard work he invested in the business and the family time sacrificed, a buyer enjoying the rewards of owning a profitable business, and a business broker who (once again) orchestrated a successful sale.
*William - real name changed for privacy
Tags: business owner small business tips
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