Last year, the financials of small businesses for sale reached record highs. This enabled business sellers to ask for – and get – more money for their businesses than ever before. High prices may sound like a deterrent to those hoping to buy a business. However, it’s actually a win-win, according to the article, “Make This the Year You Finally Buy a Business,” published in All Business. In short, buying a thriving business can be a shortcut to getting into entrepreneurship. Read more here: Make This the Year You Finally Buy a Business
As a Business Intermediary, these questions and answers within this article hit home for any perspective business owner thinking about selling in the short or long term timeframe. Here are some key points that I have used continuously throughout my career with my clients. I find that LISTENING, UNDERSTANDING AND EDCUCATION my clients goes a long way in my relationships and a successful selling process. The price a Buyer offers you that you are willing to accept Do not allow your business to be too dependent upon you Stay focused and operate your business as if it will never sell Have job descriptions, policy and procedure manuals Never sell the business to a person or business you feel will not treat your employees, customers, and vendors properly Please read full article: Questions Business Owners Ask Me And the Answers I Give Them
The Tax Cuts and Jobs Act in 2017 introduced Opportunity Zones. Simply put, Opportunity Zones open up a pathway for private investors to put money into economically-challenged communities through a variety of tax benefits for the capital invested and gained, conditional on meeting certain requirements. Opportunity Zones have caught the attention of mayors, economic development agencies, private investors, philanthropic foundations, and consultants. An article written by Dane Stangler and published in Forbes Magazine, states, “What will really fulfill the economic development promise of Opportunity Zones is an on-ground mechanism to enable investors to support local entrepreneurs.” Click here to learn about one such on-ground mechanism: Turning Opportunity Zones Into Real Opportunities With Launch Pad
What value does a business broker bring to the table? John Foster discusses this and other topics on his weekly radio show Just The Facts.
Creative Business Services/Creative Business Services / CBS-Global was represented by owner Michael Schwantes and M&A Advisor, Bob Wolter at the 2019 US Cheese Expo in Madison last week. 2019 is the third time we had a booth at the show and this year’s event was very well attended. We worked our booth on Wednesday and meet many Dairy individuals that were interested in learning more about our services and the help we can provide as a specialist in the industry. Additionally, we connected with many, many acquaintances and friends we have gotten to know the last dozen years or so. Thursday’s seminars and events were very informative and innovative. What I thought was most exciting was the ongoing effort and stand-alone business the US Dairy Export Council is providing for Wisconsin’s cheesemakers. The US Dairy Export Council is opening up new markets in Japan, North Korea, Hong Kong, Taiwan the Mideast, Mexico and South America. The US Dairy Export Council creates access to the above mentioned partners through culinary schools, Chefs Associations, and a pilot expansion program through their Cheese Retail Program increasing awareness and confidence in US Cheeses. They have commercial support through buyers and suppliers accessing shoppers and consumers in these markets. In 2018 US Dairy Export Council introduced 321 new US cheeses in these markets. In February 2019, the US Dairy Export Council attended the first annual Food Exposition in Dubai, which was a huge, huge success. I meet with a couple of folks from DATCP that attended and they concurred, it was a great way to network and connect with the world’s consumers. We were encouraged to attend the 2nd annual event in Dubai in February of 2020.
On John Foster’s radio program he discusses important factors to consider leading up to a successful business closing! Listen to: Just the Facts
Michael Schwantes of Creative Business Services / Creative Business Services / CBS-Global joined John Foster on his radio program, Just The Facts, on WOMT to discuss Important Considerations When Selling Your Business
Being a native of Wisconsin, I have grown up working on farms, building pole barns, cleaning stalls and milking cows. Being closer to the soil can really give you an appreciation for how products get to market, wrapped and on the shelf, especially when you represent an M&A firm. I specialize in industrial development and am closer to the market in lieu of the soil. Wisconsin makes cheese and that’s who we are. Creative Business Services/Creative Business Services / CBS-Global has been in great support of the cheese industry. As local Wisconsin professionals, we have been bringing the right people together in the cheese industry helping companies grow and prosper in our communities. Our team has had many successful M&A acquisitions come together for the cheese industry for all the right reasons. Long live cheese, beer, brats and football! Let’s see what we can do together… Read the full article: New North cheese makers shine in national contest
The buyers in this market are trending to be very careful and diligent in their approach because the tell-tale signs of an economic slowdown are on the horizon. I have seen much more scrutiny from banks and lenders in their underwriting and the process for financing a deal is becoming more demanding in mitigating any risk. As a result, the buyers are looking for acquisitions of premium quality. To the owners who want to sell their companies, it is strongly recommended to have a solid management team, other than the owner, that will stay on after the sale and is prevented from competing with the company, if they terminate their employment. Secondly, stability and predictability of revenue and cash flow, with low customer concentration. Also, it’s important to have state of the art operating systems. It has been my experience that most companies are not camera ready for the market place because it takes time, planning and commitment to prepare a business for sale. Before a company goes to market owners and their advisory teams must have plans to enhance all aspects of the company to maximize value. It is also strongly recommended that the owners do not negotiate with potential buyers without the aid of a seasoned business broker and M&A attorney. These buyers are typically much more experienced, sophisticated and knowledgeable about the sale process and implement highly experienced M&A attorneys and investment bankers of their own. So, it’s critical that these owners level the playing field by being prepared with their own team of highly skilled professionals.
John Foster, Business Intermediary with Creative Business Services / Creative Business Services / CBS-Global has announced the sale of Mobil 310 Mart, 1108 State Highway 310, Manitowoc, WI. Scott and Tammy Engstrom have owned and operated Mobil 310 Mart for 22 years. The new owners, Busdev Adhikari and Shobha Sharma of Sheboygan Oil and Marketing LLC own many other convenience stores in Eastern Wisconsin and look forward to meeting their new customers.
The key question from this article is “Are you treating every minute of your day equally”? The article explores and asks each one of us if we treat the minute we crawl out of bed differently than the minute we take on a challenge. Do we stretch minutes or do we rush minutes? As a business how and why do you expand your workforce? With that workforce expansion do we track if there is an actual increase in the work that is done? Although academia, government and business may find the analysis beneficial and worthwhile, it is the personal side that benefits the most! The reason being one person can be held accountable if they are true to themselves over a much larger contingent of participants. Please read full article: Get More Done by Applying This Obscure Economic Law
Already in February commercial real estate is off to a great start. Industrial real estate demand soared to new heights in 2018 and continues to grow in 2019 too fueled largely by ecommerce companies and an economy that’s healthier now than it has been in a long time. Many are on the lookout now for signs of the next recession, as the economy nears its 10th year of expansion — its longest period of expansion ever. Economists and analysts predict the economy will slow in 2019 due to continued short-term interest rate bumps by the Federal Reserve and waning fiscal stimulus from federal tax cuts. Read about these and other trends here: 18 Commercial Real Estate Trends To Dominate In 2019
