By Jon Holbert

All small business owners want to know whether their marketing campaigns, social media presence, website updates and personal networking efforts are yielding results. We’re no exception.  New clients are often asked “How did you hear about us?”  Each time we hear that any one of our marketing efforts connected with a prospective customer, we make mental notes to continue what’s working.

While we know the future and the present is digital, we also understand that ours is a business that’s built on personal and trusted relationships, one business owner at a time.

Because each business is unique, we take time to get to know each owner, understand and learn about their journey as an entrepreneur and what led them to this monumental step of selling. With that said, we’re grateful for every lead, digital or otherwise, but when it’s a referral that originates from a former client, I’ll confess, we’re elated! 

Allow this humble brag: During a recent prospective seller meeting, I asked how they heard about CBI and our team. Their answer? Everyone says you’re the ones to do this for me… 

For them, everyone included trusted mentors, friends and colleagues with whom they spoke in confidence about their future.  And every conversation returned to CBI. I soon learned these recommendations came from three past clients of CBI and one personal friend!  

It’s been said excellence attracts excellence. That concept is one our team understands. Each day, we’re working hard to provide excellent service to our sellers.  At the end of the day we know our good work, proven processes and ethical approach is one of our strongest calling cards.  

Thank you to the 750 owners who have trusted CBI to sell their businesses during the past 25 years. And, thank you for sharing a positive review of our work with others. At CBI, we’re so grateful for the opportunity to serve you and believe ours is the team best equipped to help you meet your financial goals. Want to learn more about CBI’s referral program? Contact CBI today.  

Poteau, Oklahoma — Meet Dr. Phil Chitwood. He started his veterinary practice in Poteau nearly five decades ago and grew his reputation for taking excellent care of small animals, especially bulldogs.

His practice soon developed into a full veterinary hospital, including emergency and extended care and became known to Eastern Oklahomans as the premier veterinary care destination.

At the end of 2018 after nearly 50 years in business, Dr. Chitwood knew it was time to sell Poteau Valley Veterinary Hospital (PVVH) to a veterinarian whose career was in front of them. He turned to CBI’s Fort Smith/River Valley team to ensure his business legacy would continue to thrive. Mark Kincannon and his team went to work to guide the sale of his life’s work.

Dr. Kristy Tackett, a practicing Oklahoma veterinarian, had aspired to own her own practice one day.  She obtained her veterinary degree from Oklahoma State in 2012 and has since been working as a small animal veterinarian at Oklahoma’s Enid Pet Hospital.  Dr. Tackett grew up in Seiling where her family farms and raises cattle. An OSU alum, she received her bachelor’s degree in 2008 with a major in Animal Science.

“I had always intended to be a large animal veterinarian, but by chance, have fallen in love with the small ones,” Dr. Tackett explained in a prepared letter to new clients. “I enjoy internal medicine, wound care and soft tissue surgery.”

Her husband Kody grew up in Bokoshe. There were lots of trips to the region to visit family and friends which afforded her an opportunity to meet Dr. Chitwood.

News of his retirement created the opportunity for she, her husband, two daughters and two furry family members (two dogs – a chocolate Labrador and a three-legged Pomeranian) to make their goal of life in Eastern Oklahoma and ownership of her own practice a reality.

“We wanted to live and work in a place we could raise our family,” she said.

She felt the time was right to take steps toward owning PVVH. Dr Chitwood agreed, and CBI Team Fort Smith-River Valley intermediary Chad Dickinson became a crucial part of this transaction as he communicated with seller, buyer, attorneys, and accountants to execute the sale.

Dr. Tackett looks forward to continuing to provide excellent service for those across LeFlore County, OK, and will be working with Dr. Chitwood as they transition ownership of the business. If you find yourself in LeFlore County and in need of veterinary care, be sure to contact PVVH. Tell them CBI Team sent you!

Seller Terry Timmons (left) operated and managed CPR on a daily basis for many years  providing trusted service for mobile technology repairs to customers. He decided the time was right to explore other interests and turned to the CBI Team to guide the sale that included CPR NWA’s three locations in Fayetteville, Springdale & Rogers. In addition to the acquisition of the three store locations, the sale also included a Master Franchise License which included Arkansas territory that encompasses Fort Smith and Little Rock regions. CBI’s John Green knew that successful business owners are ones who have a passion for the business and experience in the industry. He was excited to connect Chad Staudt to the opportunity to buy CPR from Terry. CPR moved quickly – within six months – and the sale has allowed Terry the ability to focus his energies on his next business, Blackbird Coffee Roasters. Be sure and stop by one of the NWA CPR locations to welcome Chad and check out Blackbird Coffee Roasters to learn more about Terry’s premium, small batch, coffee roasting company.

FSBO (For Sale By Owner) has become popular in the residential real estate market over the last few years, primarily because of the internet. However, for many reasons, selling a business isn’t like selling a house. That’s why FSBO is a dead end for most business owners. Here are five reasons why (and there are many others) you shouldn’t go it alone.

1. Time – Most business owners have more than a full-time job just managing their businesses. Selling a business requires hours of preparation, marketing, screening, meeting, negotiating, document preparation, and hundreds of other details. It generally takes 6 to 18 months to sell a business and that’s with someone devoting full time to the effort.
2. Objectivity – Can you objectively value your business? Can you determine the amount of good-will versus the buyer’s estimate of blue sky? Can you separate your ego from the market value of your lifetime work? 
3. Confidentiality– Keeping quiet and having trusted partners is crucial. Simply put, confidentiality reduces risk and keeps your business momentum from stalling with employees, customers or suppliers.
4. Screening prospective buyers to determine who is a real buyer versus a tire kicker or, worse, a competitor, who wants to steal your customers and employees. How do you protect your business from folks like that? How do you know who has the money and experience and resources to buy your business?
5. Negotiations – This is oftentimes where feelings get hurt and money is left on the table. Buyers are increasingly savvy and know how to get sellers to give up terms and money. Buyers have a team of accountants, attorneys and advisors who are experienced in negotiations. Who will represent the seller? How do you negotiate the allocation of assets, an exercise that can cost an unwise, inexperienced business owner thousands of dollars in taxes.

These are just a few of many reasons why smart business owners choose a trained, professional, experienced, full-time business broker/intermediary to represent them in the once-in-a-lifetime experience of selling a business. Reach out to your local CBI team or call or email today for a no-obligation consultation at 877-582-5200 or confidential@cbiteam.com.

Jon Holbert, CBI NWA Managing Partner

It’s been said the time to plan for the sale of your business is when you first launch it. Truer words have never been spoken. At CBI, our team provides turn-key business sales and transition support, creating benefits for both the seller and the buyer.  

“We know business continuity begins with smart planning and strong organization,” explained Jon Holbert, CBI’s Northwest Arkansas managing partner. “When you decide to exit your business, you’ll discover sellers who have taken the time to plan are the ones who could realize even greater rewards.”

Planning for the sale also means planning for the transition. And, as a bonus, buyers will respect an organized seller as it creates trust and adds transparency.

Savvy business owners will have taken the time to compile necessary documentation and detail to allow for a seamless transition and continued day-to-day operation of the business.

Some transition files to compile in advance include everything from alarm codes; office, vehicle and filing cabinet keys; operating manuals; passwords for everything from operational systems to social platforms – Google My Business, Shopify, Etsty, eBay, Facebook, LinkedIn, Twitter, etc. And, knowing how the transition will be shared and with which stakeholders – key clients, important vendors, employees, is critical. Building that list should be top of mind. And, don’t forget service providers. Knowing who to call during an outage or if key machinery needs repair will keep the new business thriving and avoid excessive downtime.

“Everything from contracts, passwords, talent succession and more, makes a big difference and enables the survival of your business in the event of an emergency, crisis or ownership change,” explained CBI founder Carl Grimes. 

Not sure where to begin? Contact CBI for a no-obligation business sales and transition consultation.   

By Roy Still, Office Owner-Tulsa While some may describe these as the lazy days of summer, at CBI we know savvy business owners aren’t wasting a minute to put important focus on improving, strengthening and growing their business.   That’s why we believe the time is now to take some simple steps to ensure your business is strong and ready to withstand any change, including its eventual sale.   When you decide to exit your business, you’ll discover sellers who have taken the time to plan are the ones who could realize even greater rewards. The time to get started is now and we’ve identified a few easy steps to get you started: 

1. Inventory Furniture, Fixtures & Equipment – Compile an updated list of your Furniture, Fixtures & Equipment (FF&E) and include fair market value estimates for each. 
2. Assess Current Inventory – Be sure to also look at current inventory levels and note estimated average dollar amounts for what’s on hand (at seller’s cost).  
3. Review Contracts & Agreements – Review your existing agreements – including any lease, franchise contracts, etc.

  “It may feel tedious, but everything from contracts, passwords, talent succession and more, makes a big difference and future-proofs your business,” explained CBI founder Carl Grimes.    Not sure where to begin? Contact CBI for a free business consultation.   

Many Baby Boomers left the grind of the corporate world to start their own businesses and live their version of the American dream. Now that those dreams have come to fruition, trillions of dollars worth of businesses are expected to transition within the next 10 years.

However, without an accurate plan for their exit, these business owners won’t receive the nest egg they need for transition into retirement. If you are a business owner thinking about selling, read our three tips to successfully prepare for your business transition.

Assemble your team

Few business owners, no matter how confident, can do all the aspects needed to successfully plan for a profitable exit. This lack of ability isn’t a jab at you; rather, it is a testament to the strong skill set that made your company successful. Your business thrived because you focused on what you do best, whether that is baking pies, manufacturing pipes for plumbing, or repairing residential roofs.

Throughout the life of your business, you gathered a team of experts around you. They counseled you on marketing tactics, kept your finances in order, and created operational processes and procedures. In the same vein, exiting your business is best done with a team. Gathering the right advisory team helps maximize the value of the business and achieve a top-dollar sale. This team is multidisciplinary, with specialists in law, accounting, tax, mergers and acquisitions, and wealth management.

These experts guide you through the selling process, place an accurate value on your business, secure and vet qualified buyers, and tie up all loose ends prior to closing. This lets you focus on your business with confidence, knowing that your trusted partners are working to secure a sale.

Iron out the details in advance

Advance preparation has several advantages. It minimizes risk around the transaction, generates a higher sales price, and optimizes the value of the business. Furthermore, it ensures that your sales strategy is aligned with your personal financial objectives. There are three areas you can focus on to help get your details in order.

Management

Firstly, establish a strong management team that will allow for a smooth transition with the buyer. A loyal, competent group keeps operations running optimally during the transition period. In addition, they provide assurance that the business will continue to thrive without you there.

The Back End

Secondly, take time to establish processes and procedures, ensure you have up-to-date financial statements, and generate reliable reports. In short, zip up things on the back end. The benefits are two-pronged: you have a better grasp on the overall health of your business, and potential buyers have more visibility into your business structure. As a result, both sides breathe easier during the selling process.

Growth Strategy

Lastly, develop a comprehensive plan for sales growth. Take time to develop a plan that maximizes profitability while keeping costs low. This shows potential buyers a clear path to sustainable growth once they buy your business.

Create a holistic plan

When it comes to planning for the transfer of ownership, there’s a tendency for business owners to neglect their exit strategy. Exit planning professionals agree that most of their clients don’t work on developing their plans until it’s too late. When business is poor, owners focus on keeping the doors open. On the other hand, when business is good, they work to capitalize on growth opportunities. It can be compared to estate planning- it’s something you know you should do to provide for your family, but it tends to get put on the back burner.

Creating a thoughtful, pre-transaction plan around the wealth that the deal will generate gives you better long-term results. It provides financial security for both your individual bottom line and your family’s legacy. The most successful outcome includes a well thought-out tax plan, a multigenerational wealth strategy and a comprehensive investment plan. Beyond that, it includes buyout terms, owner financing options, and payment details from the sale.

Utilize your team of experts to flesh out each aspect of the plan. Their knowledge will provide the best possible terms; plus, it will remove any question about your financial future.

Conclusion

In the end, deciding to sell your business is a big decision. As a business owner, the amount of work you put in on the front end will pay out on the back end. This applies to your company’s profitability as well as the payout you receive from its sale. The common saying, “if you fail to plan, you plan to fail” rings true, as only 20% of eligible businesses actually sell each year.

Start the process of transitioning into your next life phase by meeting with a confidential business intermediary. They will walk you through the selling process, assess the current state of your business, and work on your behalf to ensure a smooth transition. Contact a confidential business intermediary at the CBI TEAM today, or call our office at (479) 770-8989.

Connect with a Confidential Business Intermediary

When it comes to selling your business, the end goal is to walk away with the most money in the least amount of time. A business intermediary is the best way to get to that goal. Firstly, they walk you through the sales process. Then, they help establish a value to your business. Finally, they  confidentially market your listing and screen qualified buyers.

A qualified intermediary works on your behalf. This frees you up to focus on running your business until the time comes to sell. Not only do they know how to find qualified buyers, but they will also negotiate on your behalf for the best price.

Focus on Your Sales

A discussion with your intermediary will include a financial analysis. They will evaluate your sales and make listing price recommendations based on that information. Buyers look at financials when deciding on whether to invest in your company; lagging sales don’t instill confidence in potential buyers. If your sales aren’t on an upswing, they will make the recommendation to focus your efforts on boosting sales and expanding your customer base prior to listing.

If your sales are solid, your business intermediary proves invaluable by initiating the next steps in the selling process while you focus on your business. Since selling your business can be time-intensive, the last thing you want is to see your operations suffer because your focus has shifted away from your company. Trust your intermediary to keep their eye on the prize while you keep your focus on the day-to-day.

Advertise Strategically and Confidentially

A good business intermediary is your marketing team, negotiator, and mediator during the selling process. They will confidentially advertise your business to their network of contacts and on business listing sites. Then, as interested parties reach out, they will screen and negotiate each buyer to ensure you get the best offer.

Confidentiality is crucial to successfully selling your business. It prevents your current employees from panicking and leaving you short-staffed. It also prevents your current customer base from abandoning your business for one of your competitors. Keeping your company information secure wards off any negative backlash onto your business while your intermediary searches for a buyer.

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In conclusion, selling your business can be intimidating and overwhelming. However, the right resources will give you peace of mind and a successful sale. Trust a professional business intermediary to handle the time-consuming aspects. Furthermore, trust them to utilize their network of buyers to ensure quality buyers see your business. We at CBI TEAM are those trusted, confidential intermediaries who work on your behalf to secure your financial future. Contact us today for a free, no obligation consultation and start the selling process.