Monthly Update – February 2020

February 2020

Featured Clients this issue:
**Details of each client below article
– Commercial Vehicle Maintenance and Repair #1718
– Profitable CBD National Operation #519
– Highly Profitable Fitness Center, Semi-Absentee Owner #318
  When is the Best Time to Sell Your Business?
My team members and I are often asked that question. With the understanding that the only person that can answer the question is you because of your unique situation, there are some factors that can align to increase the value and marketability of your business. These factors include:
  • When the business is properly positioned to sell
  • When the market is robust
  • When the time is right for you
Let’s explore these factors in summary fashion:
  • In last month’s eNewsletter, we addressed “positioning” a business in greater detail, but a few attributes include a good management team, diverse customer base, being in an attractive industry, and rising sales and profits. In other words, assuming other factors being equal, your business would be attractive to buyers at a fair market price.

  • We are currently experiencing a Sellers’ Market, which is particularly true in Colorado. There are more buyers than good businesses available to acquire, and acquisition funding is readily available at historically low rates. That notwithstanding, certain industries such as coal mining and some retail sectors are under pressure and may have limited demand, in spite of overall market strength.

  • When the time is right for you, includes a multitude of factors. Are you emotionally ready to transition from what may be your alter ego? Do the after tax proceeds from the sale of your company, coupled with your other investments, and overall finances enable you to retire or move on to the next stage of your career? Is the timing right for your family? For example, do you have three kids in college with significant personal expenses on your radar screen.

Although it would be ideal if all of these factors were to align, in many cases, life issues such as health may come into play. At the FBB Group, we believe that you can make a better decision if you have the facts to enable you to determine what is best for your situation. We can provide you with a value of your business and share with you information about current market conditions. Feel free to contact us for a confidential, no obligation consultation.

We are pleased to announce that Connie Flynn has joined our team. Connie is an experienced intermediary that lives in the Longmont area, but services clients along the Front Range. You can learn more about Connie further down in this publication.
The majority of our business is derived from referrals. Please consider referring our services if you encounter a situation involving the potential purchase or sale of a business.

RVC signature
Ronald V. Chernak

Inspiring business relationships since 1982!
Welcome Connie Flynn, Business Intermediary

Connie FlynnConnie has over 40 years of professional experience, including a combined 15 years of owning and operating her own businesses. Embarking in a family business with her Mom, introducing personal computers to the desktop, demonstrated the value of small businesses in the marketplace. That experience instilled a sincere desire to place the customers’ needs first. It has served her well over the years with multiple awards for excellence. Building on her experience, she moved to Corporate Software and Hardware within the IT industry.

After retiring from corporate, finding her husband in a retirement dilemma – Connie sold his 20-year-old company. Enjoying the process of the deal, she embarked on a second career and has been designated as a Certified Business Intermediary. She is a licensed real estate broker for the State of Colorado.

Very active in her community, she mentors women to become all they were created to be.

Always looking for adventure, she has traveled the world, scuba diving, hiking, canoeing, and biking. She also enjoys the finer arts and dabbles just a bit. Music and dancing play a significant role no matter where she is in the world.
Commercial Vehicle Maintenance and Repair #1718

This well-established vehicle repair business specializes in class 6, 7, and 8 truck products and repairs for commercial accounts, as well as the general public. With several large bays, the company can easily accommodate very large vehicles, such as trash, fire, and cement trucks. ; The company is well known for providing the best full-service truck parts and repairs to Southern Colorado. he customer base is well diversified to include municipalities, local and state government, construction, trash companies, individuals and is continually adding new customers. We believe this would make an excellent acquisition candidate for an industry acquirer looking to expand their operation into Southern Colorado, or an individual acquirer with mechanical experience.

  • Business Purchase Price…$1,480,000
  • Business Down Payment…$234,000
  • Real Estate Purchase Price…$645,000
  • Real Estate Down Payment…$65,000
  • Gross Sales…$2,127,629
  • SDE (Business only)…$512,662
For more information contact Rob Amerine,
Profitable CBD National Operation #519

This established and profitable CBD business has a lot to offer a hemp or cannabis operation looking for vertical integration or an add-on. One of its attributes include a complete product line that is sold online, via wholesale, and through the company’s retail stores. It just completed a certified 2,800 square foot ISO clean room with a large capacity for production. The company has many wholesale accounts and an email list of 100,000-plus. 2019 revenues were about $4 million, with the Seller’s Discretionary Earnings around $1 million. Internal value drivers include solid profit margins, a diversified customer base, and exceptional vendor relationships. The company operates with a long-term strategy that includes franchising its brand and products throughout the United States. Multiple franchises have already been sold. The numbers below are for 2018.

  • Purchase Price…$1,450,000
  • Gross Sales…$2,697,319
  • SDE…$760,418
For more information contact Ron Brasch,

Highly Profitable Fitness Center, Semi-Absentee Owner #318

This well-established, non-franchise fitness center has demonstrated increased profitability year after year. After opening its doors in early 2009, it quickly became profitable and continues to consistently generate good cash flow. The owner has well-trained managers and staff already in place taking care of the daily operations. The management team prides itself in having a clean and friendly environment, which explains the high use and membership retention rates. The asking price reflects a semi-absentee ownership with an average $450K EBITDA which provides 2.5x ROI on the SBA minimum $200K down payment in just one year.

  • Purchase Price…$1,995,000
  • Down Payment…$200,000
  • Gross Sales…$1,052,203
  • SDE…$439,823
For more information contact Rob Amerine,
**Terms & Definitions
TBS (To be suggested by Purchaser) – Seller, in his/her sole discretion, has the right to accept or reject all offers.
Seller’s Discretionary Earnings (SDE): A term used to denote a business’s cash flow or the amount of pretax money a buyer can expect to earn in first-year operations.
EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization): All interest, tax, depreciation and amortization entries in the Income Statement are reversed out from the bottom line Net Income (It purports to measure cash earnings without accrual accounting, canceling tax-jurisdiction effects, and canceling the effects of different capital structures.)
Quick Links 

BBB Logo
MA Source Logo CABI logo

The FBB Group, Ltd.,
303 S. Cascade Ave., Suite 200, Colorado Springs, CO 80903 | {unsubscribe_link}