None of us like it, but it is said about Iowa privately owned businesses:
- Many owners are at or near retirement age.
- Over half have NO succession plan.
- Many with NO plan will not develop a plan.
- 40% of the business will either change hands or close in the next five years.
What will your community look like in five years?
There are buyers out there. However, they are selective because of significant business availability. What they want is normally what you want in financing a business:
- Key and trained people who will continue after the sale.
- A market segment that will remain solid and grow.
- Upwardly trending financial performance.
- Pricing where the buyer can service debt and pay themselves appropriately.
- If, in a smaller community, a business that has someone who can be the General Manager. This will enable the buyer to regularly interact with the G.M., but not necessarily move to the town.
When we visit with potential sellers, we tell them this story. If the local banker doesn’t like it, buyers generally won’t like it either.
Lastly, if you have local businesses and business owners that have no succession plan and you believe the business is saleable, just give us a call. There is never a charge unless we sell the business and then we get paid at closing, when the seller gets paid. We do it right or we don’t do it.
The Business Brokers, Inc.