January 2021 | E-news | Business Owner Edition
January 2021 | Business Owner Edition
News & Updates
(Hot Springs Observation Tower – Betchel Photography)
Sold – Maverick Supply
Pictured: Charles Rateliff (CBI Intermediary), Maria Smith (seller), Gene Burch (seller), Delinda Burch (seller), Jack Burch (seller), Jennifer Hicks (buyer), Donald Hicks (buyer), John Green (CBI Intermediary)
CBI recently facilitated the sale of Maverick Supply Inc., a long-time and well established Berryville, Arkansas plumbing and electric business. Donald and Jennifer Hicks acquired the 45+ year old company from the founding family, the Burchs. The Burch family chose CBI Intermediary Charles Rateliff to sell their business and John Green of CBI worked with the buyers to complete the transaction. The Burch brothers and sister will now be enjoying retirement.
The business began almost as an afterthought over 45 years ago. When the late William “Dee” Burch had trouble finding plumbing supplies at a good price, he searched the region until he found better rates. When he bought quantities bigger than he needed, he brokered the leftovers to other contractors, and the response led him to open up the store west of Berryville. His sons and daughter managed and grew the business over the years.
To learn more about Maverick Supply visit their website http://www.mavericksupplyinc.com/default.html or give them a call at 870-423-6271
CBI is pleased to have been the Intermediary for this transaction. During the process, CBI identified many other prospective buyers. If you have been thinking about selling your business, CBI has a buyer database of over 15,000 prospects. Contact CBI today!
Hot Springs Health and Fitness Sold!
Ask any athlete and they will tell you it takes time and hard work to get into “shape” for competition.
The same is true for businesses according to Connor Grimes, owner of CBI Central Arkansas.
The recent sale of Hot Springs Fitness Center demonstrates this very well says CBI Team Intermediary Tom
Stanton, who represented the deal from start to finish.
Hot Springs Fitness was the first engagement taken by CBI Central Arkansas way back in 2013.
The business wasn’t in shape to sell at the time, Stanton said, but hard work by the ownership and coaching by CBI helped whip things into shape and attract the right kind of buyers.
The business owner had a certain buyer profile in mind which made the buyer screening process even more demanding and difficult for the CBI Team.
However, after screening hundreds of buyers from all over the nation, a Texas resident, Rob Hunt, who formerly lived in Hot Springs was found and the deal began to come together.
The seller and Mr. Hunt had mutual acquaintances and that helped the deal gain momentum.
Mr. Hunt had a plan and CBI helped him work the plan. It involved finding a manager for the Fitness Center to handle the day to day operations. CBI played a part in that and helped identify the manager for Mr. Hunt.
After several delays caused by legal issues that CBI helped work out, Hot Springs Fitness Center transferred ownership on December 21st.
Under the new ownership Hot Springs Fitness has revamped its website and is working hard to grown its already strong reputation in the Spa City.
While working on this transaction, Stanton and CBI identified well over 100 buyer prospects. If you own a fitness center and are interested in selling now or in the next couple of years, give CBI Central Arkansas a call at 501-404-4980 or email email@example.com for a no-obligation consultation on preparing your business for sale.
And by doing so you can discover whether your business is ready for sale.
Avery, Sights, & King Acquired CBI Fort Smith/River Valley
Max Avery, Dennis Sights and Ryan King have acquired the rightsfor the CBI Fort Smith/River Valley office according to Carl E. Grimes, founder and chairman of Confidential Business Intermediaries/The CBI Team. The CBI office suite is located in Fort Smith’s Central Mall and the address is 5111 Rogers Avenue on the second floor above the Great American Cookie location. The phone number is (479) 274-8044. CBI has been active in the Fort Smith/River Valley area for over 20 years, helping business sellers and buyers, Grimes said.
“We’re excited to add these three talented and connected young men to our CBI Office Owner’s Team,” Grimes commented. Their high engagement and passion for Fort Smith and the surrounding area is exemplified by their community involvement.
To contact CBI Fort Smith River Valley click here.
Federal Coronavirus Relief Packages & PPP Information
From CBI Staff Reports & our friends at Postcardmania
Loans probably won’t be approved same day this time around, as lenders are taking more caution to approve lending and avoid fraud. This means that same-day approvals will be very unlikely this time around.
This additional support was built for small businesses. Who is eligible for what, exactly? Those businesses who:
Minority-owned businesses and business located in a Low to Moderate Income Areas (LMI) are eligible for more support.
Additionally, there is more support set aside for certain types of businesses. You’re eligible for these exclusive funds if you:
If you received money from the first round of PPP funding, you must have used or will use the full amount of your first PPP, and you need to demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter.
If you have an existing PPP loan, you can request an increase. If these new interim rules changed your loan calculations, you’re permitted to work with lenders to increase the loan amount, regardless of whether you’ve received it all or not. Reach out to your SBA banker about increasing your PPP loans.
“Forgivable” expenses have been expanded beyond payroll-related expenses, utilities and rent. They now include:
SBA Extends COVID-19 Economic Injury Disaster Loan Application Deadline through Dec. 31, 2021
From our friends over at SBA, “The U.S. Small Business Administration today announced that the deadline to apply for the Economic Injury Disaster Loan (EIDL) program for the COVID-19 Pandemic disaster declaration is extended to Dec. 31, 2021. The deadline extension comes as a result of the recent bipartisan COVID-19 relief bill passed by Congress and enacted by President Trump on Dec. 27, 2020.
To date, the SBA has approved $197 billion in low-interest loans which provides working capital funds to small businesses, non-profits and agricultural businesses make it through this challenging time.
“Following the President’s declaration of the COVID-19 Pandemic, the SBA has approved over 3.6 million loans through our Economic Injury Disaster Loan program nationwide,” Administrator Jovita Carranza said. “The EIDL program has assisted millions of small businesses, including non-profit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors, to survive this very difficult economic environment.”
EIDL loan applications will continue to be accepted through December 2021, pending the availability of funds. Loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and nonprofit are encouraged to apply to get the resources they need.”
10 Resolutions That Will Increase the Value of Your Company
By: Dave Godwin
Buh-Bye and good riddance to 2020!
If your goal is to build a more valuable company in 2021, here are some New Year’s resolutions to consider:
1. Stop chasing revenue. A bigger company is not necessarily a more valuable one if the extra sales come from products and services that are too reliant on you to deliver them.
2. Start surveying your customers using the Net Promoter Score methodology. It’s a fast and easy way for your customers to give you feedback, and it’s predictive of your company’s growth in the future.
3. Sell less stuff to more people. The most valuable companies have a defendable niche selling a few differentiated products and services to many customers. The least valuable businesses sell lots of undifferentiated products and services to a concentrated group of buyers.
4. Drop the products or services that depend on you. If you offer something that needs you to produce or sell it, consider dropping it from your offerings. Services and products that require you suck up your time and cash and don’t contribute significantly to your business’s value.
5. Collect more money up front. Turn a negative cash flow cycle into a positive one and you boost your business’s value and lessen your stress load.
6. Create more recurring revenue. Predictable sales from subscriptions or recurring contracts mean less stress in the short term and a more valuable business over the long run.
7. Be different. Refine your marketing strategy to emphasize the point of differentiation that customers value. Be relentless in highlighting this advantage.
8. Find a backup supplier for your most critical raw materials. Consider placing a small order to establish a commercial relationship and diversify the sources of your most-difficult-to-find materials.
9. Teach them to fish. Answer every employee question of you with “What would you do if you owned the business?” Your goal should be to cultivate employees who think like owners so they can start answering their own questions without coming to you.
10. Create an instruction manual. Document your most important processes so your employees can do their work independently.
Here’s to building a more valuable company in 2021!
I help entrepreneurs buy and sell remarkable businesses. Will this be the year you realize your dreams and achieve financial freedom? Click Here to schedule an introductory call with me to find out if it’s the right time to sell and learn how I can help you ask a higher selling price for your business. All information is managed in the strictest of confidentiality.
CBI Insights/Webinar Video Except: Learn Who Is The Average Buyer
Part 2 of our UASBTDC Webinar Excerpts
CBI (Confidential Business Intermediaries) Northwest Arkansas Managing Partner Jon Holbert and company founder Carl Grimes joined with Mary Beth Brooks, Director of the Arkansas Small Business and Technology Development Center (ASBTDC) at the University of Arkansas, for a panel discussion for participants to explore questions about Who is Selling Businesses and Why?
In this excerpt, Jon and Carl discuss who is selling businesses, and who the average buyer is.
Whether it’s a seller effected by COVID or a buyer who is interested also related to COVID, we have seen a huge amount of new buyers and sellers because of the actions and effects of the global pandemic
“Some [buyers] are corporate refugees, some would like to be called that. We hear that often, some [buyers] are interested in a back-up to their day job,” explained CBI’s Jon Holbert.
Visit CBI’s YouTube channel to watch the series of short video clips about selling & buying businesses.
Learn How Loans4Business Can Help Your Business Grow
At CBI we know how important it is for you to succeed. That’s why we have a proven approach to help you access necessary capital to grow or buy a business.
Our Loans4Business Program navigates the financing side of your transactions with a robust 80+ lender network. You’ll be well positioned among lenders with our professional information package and CBI manages the entire process, takes every phone call and identifies your best opportunity.
To get help with cash flow or learn more about CBI’s Loans For Business program, contact Kelly Tivis.
Big Buyer Seeks Transportation, Logistics, Financial, & Environmental Services
This big buyer is actively looking for best-fit opportunities within many service industries;
“We generally look for the following characteristics:
Contact your local CBI Team today for a no-obligation, confidential consultation.
Learn About The Value Of Your Business
To see what your company is worth, “The Sellability Score”
Major Changes to SBA 7(a) Lending Coming
On December 27, 2020, The Consolidated Appropriations Act of 2021 provided additional COVID relief for small businesses. The bill includes limited-time benefits for small business owners seeking SBA 7a financing.
For all new 7a loans that close and fully fund by September 30th, 2021, borrowers will be eligible to receive the following benefits:
For more information, please contact Kelly Tivis, the Loans4Biz Administrator.
Carl Grimes (Founder/Chairman) Blog:
What was that!
Oh, that was 2020 and we’re sure glad it’s in the rearview mirror and that we can look forward to 2021 and maybe start to a better roaring 20s.
Or can we?
One thing we know is that privately held businesses are going to face challenges in 2012.
Those are certain as we change federal administrations and the accompanying differences in the philosophical approach to business.
One thing about small business is that it’s nimble and can “pivot” (that seems to be the catch word of the 20s) quickly.
The nimble adapt and survive.
One only has to look at the way businesses adapted to the lockdowns and the stay-at-home work force to see that small business will find a way to survive.
CBI decided to pivot early in 2020 when we saw the handwriting on the wall with the pandemic. Our forte has been and will always be selling businesses. We set the curve for that.
However, we saw that many businesses would be struggling to survive and not in the best position to sell. So, we added several tools to our toolkit. They can be found at https://www.cbiteam.com/services/
Among them are:
L4B to help businesses find the best loan for their needs
LAP for when time is running short and a business must be sold for the value of its assets, including real estate
RAP to allow business owners and buyers to access capital in their 401Ks or other retirement plans to be used to save or buy a business with no tax or penalties, regardless of the owner’s age
CVB to help business owners analyze and operate their businesses for more profit
And many more.
So, no matter where you find your business to be in 2021, CBI has a team and a service to help.
Call 877-582-5200 or email firstname.lastname@example.org for a free, no-obligation consultation.
Selling Businesses Is Our Business Since 1994
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