80213116 - Manufacturing, Distribution / Import Sewing Notions

8023116 - Manufacturing / Import, Sewing Notions

Price	Down	Adjusted Net	Sales
$1,495,000	$1,495,000	$387,014	$1,425,000

Consumer branded products manufacturer with long term, vendor partner relationships with some of the largest, US big box retailers. Manufactures unique line of sewing notions; distributes full line of seasonal embroidered products; distributes full line of crafting polyfoam products; contract manufacturer for corporate & team logo-wear. Customers include: Wal-Mart, Jo-Ann’s™, Michaels, Hobby Lobby, and AC Moore. Owner retiring after ~30 yrs in the industry, but will stay in commissioned sales role as needed.

If you would like to pursue this opportunity further, you may DOWNLOAD OUR Confidentiality Agreement.

Please fax the completed form to our office at (866) 353-0382. Upon receipt, we will forward the Business Listing Information for your review.

For further details, Contact Mike Ertel.

Choosing An M&A Professional

May, 2008 Op-Ed Article

Choosing An M&A Professional

One author has estimated there are 17,000 practicing intermediaries who assist business owners with the sale of their business. So how do you pick the right one to represent you when the time comes to sell your business, which is likely to be one of the largest and most important financial transactions of your life?

Since the process of selling any business can take up to a year or even longer, it’s a good idea to start planning 2-3 years in advance to prepare your business for sale, and selecting an experienced M&A professional to assist in the process. Certainly, you will want to interview several candidates before selecting one, but what should you be looking for? Here are a few suggestions:

1. Make certain that you meet with the individual who will actually be working on your engagement. Some larger firms will send a senior partner to get the listing, but then assign the engagement to someone else in their firm.

2. Ask questions about their education, experience, professional credentials, and track record. Any professional intermediary should be happy –even proud — to share this with you.

3. Make certain that your business is a good fit for the intermediary and vice versa. There’s no point in “parking” your business with an intermediary who is not genuinely interested in working on your engagement.

4. Ask for examples of how the intermediary has added value in assisting other clients with the sale of their business. An experienced intermediary should have a network of contacts/resources who can be called in to solve various problems that may arise with getting any deal successfully closed.

5. Ask for references from recent clients and actually follow up and call them. Look for evidence of their integrity, trustworthiness, professionalism, with an emphasis on getting the best deal for you while protecting your confidentiality.

6. Finally, determine if you and the intermediary will work well together with your other professional advisors to accomplish your goals. If not, keep looking.

If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a free consultation with us, have them contact me, or any of the M&A professionals at www.bradwaygroup.com.

Mike Ertel, CBI, M&AMI
The Bradway Group
813.299.7862 Direct

© 2008, J. Michael Ertel, PA

When Is The Best Time To Sell Your Business? - Part 2

March, 2008 Op-Ed Article

WHEN IS THE BEST TIME TO SELL YOUR BUSINESS? - PART 2

Generally, the market for selling any business that has a consistent or improving trend in sales and cash flow is pretty good year in and year out. There always seem to be more qualified buyers, who are eager to find just the right business, than there are good quality businesses for sale, and this trend shows no signs of abating. With the growth of private equity firms, who seem to have an unlimited supply of equity capital to invest in medium- to large-size businesses, demand will likely continue to outpace supply for the foreseeable future.

With the continued aging of the U.S. population, the Baby Boomer generation is just now approaching retirement age, which means that more businesses will likely be available for sale, but it also means that more experienced executives with some severance, savings, and/or retirement plans will be looking to relocate from the northern states with their cold, cold winters, and retire or semi-retire to Florida and other warmer, southern states. Many will want to acquire a business as a way to stay active and increase their net worth before fully retiring.

Acquiring a business of sufficient size is also one of the last remaining avenues to secure a permanent visa if you’re trying to relocate to the U.S.from another country, and this has helped keep the market for businesses strong.

The market for selling your business does tend to follow the overall health of the U.S.economy to some degree, and higher interest rates have a chilling effect on the market. Some deals that make great sense at 7% - 8% interest, simply won’t fly at 12%.

In spite of all the news about the continuing credit crunch, 2008 should continue to be an excellent year for business sales as interest rates continue to be at near record lows, and the Fed has indicated that it’s prepared to keep lowering rates as needed to avoid a recession. One final factor that should make 2008 a good year for selling your business is the very low capital gains tax rate. Many political pundits believe that we’re very likely to see a Democratic President sworn into office in January, and all of the Democratic front runners have pledged to repeal the tax cuts that have been enjoyed by “the rich, business owners” in recent years.

If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a free consultation with us, have them contact me, or any of the M&A professionals at <a href=”http://www.bradwaygroup.com” target=”_blank”>www.bradwaygroup.com</a>

Mike Ertel, CBI, M&AMI
The Bradway Group
813.299.7862 Direct
ertel@bradwaygroup.com
© 2008, J. Michael Ertel, PA

Avoiding The Common Pitfalls In Selling Your Business: Deal Fatigue

December, 2007 Op-Ed Article

Avoiding The Common Pitfalls In Selling Your Business: Deal Fatigue

Most business owners are unprepared for the enormous amount of time and effort that will be required to prepare their business for sale, successfully market their business to find the right buyer and negotiate the right deal, and then get that deal closed.

Even at the conclusion of a highly successful process, many sellers describe it as “like having two full time jobs.” And even with the assistance of an experienced M&A professional many sellers will experience “deal fatigue” at some point in the process. If not properly managed, deal fatigue can scuttle an otherwise very attractive deal. Deal fatigue frequently occurs when the stress and strain of responding to all of the requests for information from all of the potential buyers — and then their due diligence advisors — descend upon the business owner whose staff is already fully burdened with the daily demands of running the business. All too often the tone of these requests make the seller feel like he/she is getting the third degree from a hostile and suspicious adversary, rather than a trusting investor/partner.

An experienced M&A intermediary can be immensely helpful in minimizing deal fatigue in several ways. First, in gathering and organizing most of the required information up front, the M&A advisor can anticipate and answer most of the commonly asked questions in the initial marketing phase. Next, by screening prospects so that only qualified buyers will ever meet the seller, we can minimize the seller’s frustration at being asked the same questions over and over again. By funneling all information request through the M&A advisor, we can remind the buyer that certain questions have already been asked and answered and that other questions should properly be asked after they’ve made an offer. Finally, by managing the process all the way through to closing, we can ensure that the seller always sees the light at the end of the tunnel.

If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a free consultation with us, have them contact me, or any of the M&A professionals at www.bradwaygroup.com

Mike Ertel, CBI, M&AMI
The Bradway Group
813.299.7862 Direct
ertel@bradwaygroup.com

© 2007, J. Michael Ertel, PA

Why Businesses Fail

November, 2007 Op-Ed Article

Why Businesses Fail

Lenders and investors know that approximately half of all businesses fail within the first four years. Here are some of the most common reasons why.

- Lack of a formal business plan, which is updated quarterly and shared with lenders and investors. Business owners who throw surprises at lenders or investors are headed for trouble.

- Inadequate cash flow. Business plan should include 3-year cash flow projection, by month for the 1st year, by quarter for years 2 and 3, which shows the business consistently achieves a debt service coverage ratio (DSCR) of at least 1.25. This means that real net profit per month, divided by the loan amount, per month, must be 1.25 or higher. If the DSCR falls below 1.25 as time progresses, the business is generally headed for failure or loan default.

- Accounting system does not provide timely monthly P&L statements and balance sheets.

- Poor location. Even the best manufacturing plant, hotel, restaurant or retail store will fail if it’s in the wrong place.

- Inadequate analysis of competition.

- Inadequate marketing plan. Lack of direct in-person contact with current customers, and potential ones. Failure to monitor and adapt to changing customer needs.

- Failure to attract and retain key employees. Business plan should definitely include resumes for persons in key positions with the company.

- Lack of versatility. A successful business owner must wear many hats, including operations, hiring, marketing, accounting and human resources, just to name a few.

- Lack of responsiveness to change. Every business owner will experience some surprises, like discovering that many of your own ideas are wrong! Look for business consultants who monitor your monthly statements and provide suggestions for a recovery plan. Network with your competitors, sometimes they can help you, sometimes you can help them. Develop a subcontractor relationship, meaning they can handle your overflow, or you can handle theirs.

If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a free consultation with us, have them contact me, or any of the M&A professionals at www.bradwaygroup.com.

Mike Ertel, CBI, M&AMI
The Bradway Group
813.299.7862 Direct
ertel@bradwaygroup.com

© 2007, J. Michael Ertel, PA