June 2020

Featured Clients this issue:
**Details of each client below article
– Commercial Vehicle Maintenance, SBA Prequalified #1220
– Exceptional Childcare Center with Real Estate #0920
– “Off The Grid” Holistic Forestry Services #0720
  Maximizing the Value of your Business During the COVID Environment

Even during these financially uncertain times, businesses are being bought and sold.  As you would expect, the better managed and performing businesses are attracting more attention and commanding higher prices.  Below are several suggestions that you, as a business owner, can implement in order to make your business more marketable and valuable, either now or when you decide to go to market.

Team of Employees

Start with your team.  Do you have the right people in the right positions to navigate the current environment?  If not, you may find that the high unemployment rate has created a pool of talent that was not available several months ago.

Are your employees engaged in reconfiguring your business model to survive and grow?  Some of the best ideas for my business come from the team members in the trenches.  They may have the direct contact with clients and customers, are able to identify  inefficiencies, and make it easier for people to do business with you.

Don’t forget your outsourced advisors such as accounting, legal, banking, and insurance professionals.  Make sure they are helping you to find the best and most cost effective products that you need.

Financial Statements

Review your financial statements with your team on a line-by-line basis.  This includes both your Balance Sheet and your Income Statement.  On your Balance Sheet, determine if you have enough cash to weather the economic storm.  Now may be the time to increase your Line of Credit.  This may also be the time to examine your credit policies to make sure that your receivables are collected in a timely manner and to examine your inventory policies to convert excess inventory into cash.  On your Income Statement, look at ways to cut costs and increase profits.  Do you really need the same level of outside services that you employed prior to the COVID disruption?  Getting your accountant and banker involved may bring additional eyes and benefits to the process.

Planning Ahead

Will you be communicating with your clients and customers ninety days from now in the same manner that you did ninety days ago?  Will you be delivering the same products and services the same way that you did ninety days ago?

Update your written business plan now and make sure that you are disciplined in its execution.

In our communication with lenders we are repeatedly being told that the ability to forecast future earnings is critical to the acquisition lending process.

Those businesses that are willing and able to adapt and successfully implement change will survive.  Those businesses that are unwilling to change will suffer a different fate.  The team at The FBB Group, Ltd. has a wealth of experience and is available to provide guidance.  Please contact us for a confidential, no obligation discussion of our services. 

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.
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Ronald V. Chernak

Inspiring business relationships since 1982! 
Commercial Vehicle Maintenance, SBA Prequalified #1220

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. This business has proven to be resilient through the COVID crisis with 2020 financials through April on track with last year. 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. The 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
  • SDE (Business and Real Estate…$580,942
For more information contact Rob Amerine,
Exceptional Childcare Center with Real Estate #0920

Located in Southern Colorado, this well-established childcare center has been serving families with infants through middle-school aged children in the community for over 7 years. This turnkey operation has a licensed capacity for 74 children, with spacious classroom settings, fully equipped for each age range. Currently operating 5 days a week, this center offers full-time, part-time, and extended after-school programs. It features a large outdoor play area, secured entry and a closed-circuit video monitoring system. The sale includes all furniture, fixtures, and equipment. The modern facility is to be purchased with the business, for an additional $895,000. A stable, dedicated and fully trained staff of teachers and directors are in place, which will assist in a smooth transition for the new owner. We believe this would be an excellent opportunity for someone seeking to own and operate their own daycare center or for an existing operation to add to their portfolio of daycare centers.
  • Real Estate Purchase Price…$895,000
  • Business Purchase Price…TBS
  • Gross Sales…$555,048
  • SDE…$(3,331)
Financial information above reflects a 4 yr. average.
A family illness caused a disruption in 2019, resulting in the business losing money for the first time, in many years.
For more information contact Connie Flynn,

“Off The Grid” Holistic Forestry Services #0720

Founded in 1994, Greenleaf Forestry and Wood Products, Inc (GFWP) grew from Lankford Foresters, Inc. which began in 1975. This holistic business model, unique to the forestry and wood products industries industry, continues to thrive. GFWP’s great reputation continues to drive business even with recent COVID-19 restriction, customer orders are increasing as more homeowners focus on home improvement projects and commercial orders continue. With very modest sales/marketing efforts, hundreds of repeat clients across the nation support GFWP. GFWP has a diversified and solid foundation with many integrated growth avenues ranging from tree nursery services, forest health, and fire mitigation to custom milling and specialty wood product manufacturing. The owner started working in the forestry industry over 45 years ago and has incorporated his many decades of experience into GFWP’s integrated and sustainable products and services. He has a fully trained team of 3 employees daily operating the sawmill at the Westcliffe campus and a part-time contractor at the leased Black Forest division. The Westcliffe campus (approx. 80 acres) is for sale along with all business assets, existing buildings, nursery, and operating equipment. The owner is ready to retire and is willing to fully train the new owner for up to 2-3 years after closing (negotiable as part of transition).
  • Purchase Price…TBS
  • Gross Sales…$394,667
  • SDE…$100,314
  • Real Estate…$520,000
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.)
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303 S. Cascade Ave., Suite 200, Colorado Springs, CO 80903 | {unsubscribe_link}