This established company had strong name recognition and a good track record, but had become complacent after benefiting greatly from a single customer relationship. When the customer left and sales decreased by 60%, the owner decided to cash out as opposed to expending the effort and money necessary to rebuild sales.

The remaining customer base was not concentrated and the business had an excellent profit margin. But faced with the steep sales and profit decline, the owner would have been hard-pressed to convince a buyer of value and potential. The week we contacted the owner, he had put an ad in the newspaper offering the business and the real estate for $350,000.

Enter Strategic Endeavors LLC. Bringing an independent, fresh perspective and knowledge and experience in business valuation and the mergers and acquisitions process and marketplace, we convinced the owner to pull the ad and give us a chance. We entered into a contract on April 24th, put together a dynamic offering memorandum over the next 5 weeks, and went to market on June 1st.

Over the next 6 weeks, we received over 80 buyer inquiries on the business. A competitive environment was maintained culminating in four offers and execution of a letter of intent by Aug 1st. The transaction closed by September 30th with the Seller receiving more than 70% over the price (applicable to the business only) that he advertised in the paper. In fact, the business only selling price exceeded the price the owner advertised for the business and real estate combined by more than 25%. He retained the real estate with a market lease of the premises to the buyer providing a continued income stream.