Begin with the End in Mind
Seller had a dream and a written business plan in which he projected a kayak company to become a leader in the recreational family kayak market in 5 years. He would sell the company and go onto his next vacation.
Fast forward 5 years
The company had been successful selling thousands of kayaks per year.
An Intermediary was hired to sell the business.
The business was profitable with a branded product.
With a well-documented offering memorandum, the Intermediary went to market by approaching all the obvious potential buyers in the marine and sporting goods business. The kayak market was growing rapidly, and had overtaken the traditional canoe market in annual volume. Most large corporate buyers seeking acquisitions require sellers to be ranked in the top 3 in the industry.
The Intermediary identified several individual buyers who had the financial resources to complete the transaction. Two prospective buyers submitted Letters of Intent that met Seller’s requirements. One of the offers received by an individual originated through the Internet.
The Value of an Intermediary
By hiring an Intermediary, Seller was not distracted in running the business. It was important Seller achieved its sales projections because the Sales Price expectations for the business were based on achieving these projections.
Selling a business often takes patience and perseverance.
If starting or acquiring a business should begin with the end in mind.