Transition360 - Business Development & Brokerage Services

Proven. Professional. Principled.

Proven. Professional. Principled. | 425.224.3850
  • Home
    • Code of Ethics
    • Terms & Conditions
  • Selling Your Business
    • 360 Development Program
    • What We Do
    • Why A Business Valuation Is Critical
  • People
    • About Us
    • William E. Pearsall, Founder
    • Tod Fiscus, Principal
    • Dan Stone, Principal
    • Taralee Muhli, Senior Director
    • Veniça Fiscus, Research Analyst
  • Services
    • What We Offer
    • Buy A Business Services
    • Acquisition Process
  • The Difference
    • Why We Are Different
    • Trusted Affliates
    • Testimonials & Recommendations
  • Buy a Business
    • Why Buy a Business With Transition360
    • Current Market Trends
  • News & Events
    • Blog
    • Press Releases
    • Upcoming Events
    • Newsletter
  • Get Started
    • Seattle Office – Call 425-224-3850
    • Bellevue Office – Call 425-224-3850
    • Tacoma Office – Call 425-224-3850

Dont’ sell your business this year!

September 15, 2013 By Tod Fiscus Leave a Comment

sell-your-business

…Unless you worked all year to prepare.

Preparing your business for sale is like painting a house. The hard work is filling the cracks, sanding down the rough spots and protecting areas that don’t need paint. Once prepared, applying the paint is easy and the results add value far beyond the effort and expense. Any business can significantly increase value with preparation. So take the time to fill the cracks or smooth out the rough spots.

As a typical example, and sign of the times, Sharon Granite and her husband Slab grew their construction engineering practice over two decades. For many years annual sales were $2.5 Million. By 2010 sales had eroded and $1.0 Million was a stretch.

With painful staff cuts and a smaller space with heavy traffic noise the business still had a $200K profit. Beat-up and tired they didn’t want to rebuild. They just wanted to retire with their savings and whatever they could get for the business. Starting to sound familiar?

They read an engineering industry article saying the current business value would be between 30% & 40% of annual revenue. Therefore a $300K to $400K expectation was in their mind and they decided to sell and retire within 6 months or if it didn’t sell, keep it a couple more years until construction increased. Still sound familiar?

Their Accountant called to engage our intermediary services.

Upon review we advised Sharon and Slab not to sell but take 6-months to build value. Our goal would be a sale between $650K & $700K or more.

Any business can increase value with a little preparation.

How does a Business Broker do that?

Business Brokers Discard Industry Value Estimates.
Every business is different. There are niches and specialties in every industry. Each with a different value. Ten Buyers will have ten different perceptions of value. It’s the Broker’s job to set and justify value and find and qualify the ten Buyers. The sale must pencil for all concerned.

Business Brokers recast and adjust the financials.
True cash flow and earnings are determined and used in a supportable valuation. This process concurrently identifies the detailed areas for adding value and improving the price. The goal is to maximize value with little or no capital expense. An Intermediary focuses on increasing value by 100%. This can involve a 1% improvement on 100 items.

The Broker’s team helps to determine if the Client CAN retire.
Intermediaries assist in the design and implementation of the financial planning component. Will their savings along with the sale of the business meet their goals? Also, for tax purposes many transaction design elements can and should be set in place prior to the sale. This step is a huge benefit and eliminates surprises. The goal is peace of mind.

Business Brokers go to market and make the sale.
When ready, target lists of candidates are developed and target specific presentation materials are prepared. In this case we needed to replace Slab Granite with another engineer with the same discipline or an engineering firm looking to add Slab’s client base. Marketing should be designed to attract a broad group of candidates. The cream raises to the top and those at the top are the only ones the Sellers meet.

Brokers are transaction designers and coordinators.
The Client runs their business and the Broker rides herd over the transaction through the close and post close transition.
And Business Brokers usually don’t get paid until the close.

PS: Our client merged with another firm and Slab has a 2-year transition Employment Agreement. The total transaction benefit for Slab & Sharon = $840,000.

Filed Under: Resources Tagged With: business brokers, financials

About Tod Fiscus

Tod Fiscus is Principal of Transition360, LLC, a full service Valuation, Exit Strategy Planning & Business Brokerage Company in the Pacific Northwest that focuses on internal and external Business Ownership Transition Planning for business owners and buyers in the $500K to $20 million range. Tod can be reached at todfiscus@transition360.com or 206.226.4311 for more information.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Our Process

Our <span>Process</span>

Watch and listen on how to prepare your business for sale by Bill Pearsall.
Learn more »

Understanding Brokers

Understanding <span>Brokers</span>

Selling your business may be the most financially important decision you will ever make. Don't you want to make sure your Broker represents your interests?
Learn More »

Get Started

Get <span>Started</span>

Lets schedule some time to understand exactly what you're looking for...

GET STARTED »

Guiding Principles

Guiding <span>Principles</span>

If your agenda is to fraud your partners, your employees, your vendors, your suppliers or the government, we’d like to refer you to our code of ethics.
Learn More »

Client Testimonials

Dan Stone and the Transition360 team are top professional who are always looking for ways to improve and deliver the finest service to their clients.
Bert Holeton CMC, CPVA, CPBA
Read More »
It’s a pleasure to recommend Tod as one of the finest business development professionals in the region. In addition, he provides value above the role he serves in, looking to bring the best out in others in the team around him.
Jeff RogersCEOOneAccord Partners
Read More »
I have worked with Dan and Bill on several client transactions over the last few years and I have considered my work with them a true collaboration with the clients’ best interests in mind. They have not only a breadth of knowledge to handle the multiple issues presented by often complicated busine… Read more
Cynthia HallAttorney
Read More »
I would encourage the small business owner, currently contemplating a sale or transfer of their company, to consider TRANSITION 360 as a resource. I have found few professionals that are as experienced and qualified to assist owners in what often is the most significant business transaction they… Read more
Steve VaronHellam Varon
Read More »
Tod and the Transition360 team are an outstanding resource for business decision-makers. They are some of the best connected people in the area. When I need advice, I ask Tod as he is one of the few I know that has the depth of experience to give immediately useful advice. He has helped his firm be… Read more
Corey Hansen, MScODPersonal Training CoachHot100Business
Read More »
Tod has the leadership and integrity that you can count on in any organization. He thoughtfully considers the challenges put in front of him and brings the necessary resources to the table. It has been a pleasure working with him.
Brian M. RayfieldFinancial AdvisorMorgan Stanley
Read More »
Transition360 has a remarkable ability to see a deal that is good for both sides before anyone else at the table has seen it. The icing on the cake is that he also has the social skills to get the parties to see it, and the level of detail orientation to earn the confidence of all involved that he p… Read more
Mike DuscheSenior Sales SpecialistIBM
Read More »
I’ve finished reviewing your document and while I’m not sure which direction I would like to go, I wanted to compliment you and your firm on one of the most legible, logical, and compelling business overview I’ve seen. Your client should be very happy they have your team representing them. Great wor… Read more
VinceProspective Business Buyer
Read More »
With my 40+ years experience doing business purchases and sales, I refer clients to no other brokers besides Transition360.
Gary E. JacobsonAttorney
Read More »
Dan Stone brings a lot to the table for business owners. He has a wealth of experience in understanding the true value of a business and how to build an effective strategy for buying or selling it. Working with mutual clients, I have noted his genuine interest in developing a win-win strategy for th… Read more
Grant MonsonCertified Financial Planner
Read More »

Welcome to Transition360 | Business Brokers in Seattle, Bellevue, & Tacoma

Transition360 is the only business brokerage firm with a proven and comprehensive program that helps small business sellers and buyers through an optimal transition. Our track record of 90% successful business buy and sell transactions make us the Seattle business broker to use when you want results.

We engage with business owners that have built their businesses with sweat, risk and hundreds of hours of lost sleep, resulting in positive cash flow for a new owner to grow the company to the next level and beyond.

Business Buyers

Our Buyer Clients are proven managers with a desire to be their own boss. They have the confidence, skills and resources to take a proven business platform and build a continued legacy. They look … Read More »

Our Partners

After 30+ years of business, we’ve developed relationships with professional service providers who have proven that they understand how to … Read More »

Mission Statement

Transition360 has three primary rules: Complete Transparency No Seller Remorse No Buyers Remorse If your agenda is to defraud your partners, your … Read More »

Connect with Us

If you’re contemplating a sale of your business or in the market to buy, we’re always available for a confidential, no obligation meeting (and coffee is on … Read More »

Join Our Newsletter

  • This field is for validation purposes and should be left unchanged.

For More Information or Questions, Contact Us at 425-224-3850 / Copyright © 2023 · Transition360 LLC