–SINCE 1982–

The Quandary of Multiple Offers

FBB eNews
September 2016


In This Issue  

 The Quandary of Multiple Offers 


As I have indicated in recent, prior eNewsletters, the business transfer market in Colorado is very robust. Similar to 2007, the previous peak in M&A activity, we are generating offers from multiple buyers on attractively positioned businesses. If you are a Seller, options are nice, but multiple offers can lead to their own set of problems.

The FBB Group typically represents Sellers. In doing so, part of our job to help the Sellers achieve their goals. Although maximizing the price paid for a business may be a goal, there are numerous other goals that should be considered. Below are some of the goals that we discuss with our clients:

Timing – Is the target closing date right for them and the business?

Taxes – Does the proposed deal structure mitigate the tax liabilities? We often use the phrase “It is not what you get, but rather what you keep that is most important.”

Employees – What will happen to the employees as a result of the transaction? In the majority of transfers, all or most of the employees are retained, but there are exceptions.

Certainty of Closing – Unfortunately, not all deals close due to problems with financing, due diligence or other factors. The buyer that offers the highest price may not have the experience or financial resources to assure a high probability of closing.

Capabilities – Even though the buyer may have the financial resources to close the deal, the buyer may not have the skill set or the personality to succeed in operating the business. Most Sellers want to see their “baby” prosper under the new ownership.

These are a few of the many goals that should be considered and prioritized prior to receiving an offer. If multiple offers are involved, it gets even more challenging to respond to the various proposals in a timely manner, so as not to wind up losing all of the buyers and having to start over again with a new group of buyers.

By being able to prioritize goals, the Seller can choose the buyer or buyers that meet the criteria established by the Seller and go back to the qualified buyers with a request for a second or third proposal that incorporates terms favorable to the Seller.

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.

Ronald V. Chernak

Inspiring business relationships since 1982!




Interior Demolition and Scrap Removal Business #1316
Founded in 2010, this highly regarded demolition and scrap removal company works with construction firms and general contractors to remove existing tenant finishes and equipment from retail businesses, office complexes, and other commercial buildings. Most of the demolition work is indoors and doesn’t include the exterior of the building. The company has the experience and owns the equipment to perform large demolition projects. Revenue has increased significantly in 2016 and Seller’s Discretionary Earnings are approaching $500,000 through July. We believe this would be an excellent acquisition candidate for an industry buyer, a current manager of a construction company, or a sales-oriented entrepreneur ready to take the business to the next level.
Purchase Price………….TBS
Down Payment…………TBS
 Gross Sales…..$2,262,390


Business Summary

For more information,
contact Ken Galecki


Automotive Service & Repair #1716
This well-established and profitable company provides high quality work, fair pricing, and certified technicians. Services range from simple oil changes to complicated diagnostic and electrical repairs. The business also sells and repairs tires. This business has a long history of growth, repeat customers, and strong name recognition. We believe this would be an ideal acquisition candidate for an entrepreneur with automotive, marketing, or management skills, or another similar-type business looking to expand into the area. Owner retiring.


Purchase Price……..$895,000
Down Payment…….$223,750
Gross Sales…$1,617,251
For more information,
contact Robert Amerine


Profitable Educational/Training Franchise #1516
This profitable company has carved out a desirable niche in the growing field of financial education and training. It is based in a popular, upscale suburb about 25 minutes from downtown Milwaukee. Seller’s Discretionary Earnings for the first nine months of this current fiscal year are $402,000. There are well-trained, experienced employees in place. Long term demographics, such as retiring baby boomers and poor employment trends, help make this industry’s prospects very appealing. Franchisees enjoy the support of an internationally successful franchisor. This business should appeal to a wide range of experienced business operators (especially in sales or training) looking for an established company with growth opportunities.
Purchase Price….$1,100,000
Down Payment….$300,000
 Gross Sales…..$2,748,606
For more information,
contact Ron Brasch