June 13, 2024 • 19 mins
Welcome back to the Apex Business Advisors Podcast! Join your host, Andy Cavanaugh, and the president of Apex, Doug Hubler, as they delve into the intricacies of recent business transactions and the crucial role of professionals in the process. This episode kicks off with a discussion on successful closings, highlighting strategic moves that benefited both buyers and sellers, with real-world examples from a pool company acquisition to a flooring business deal.
The conversation explores the importance of hiring professionals, comparing DIY home projects to business transactions. Andy and Doug emphasize the value of experience, liability management, and the efficiency that professionals bring to the table. Whether you're considering buying or selling a business, this episode offers valuable insights into the benefits of working with experts who can navigate complex scenarios and ensure smooth, successful outcomes.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Music.
(00:10):
Brett to do this and budget in, and it would have gotten done a lot better,
a lot more professional because Brett has the tools.
Brett has the know-how. Brett's done hundreds of these.
Well, and what I like about hiring a professional, you've got somebody that
takes on some liability, some responsibility for the job too.
(00:32):
And so if something's not done right, like, you know, you got to make it right.
Music.
Welcome back to the Apex Business Advisors Podcast. I'm your host,
Andy Kavanaugh, joined, as always, by the president of Apex,
(00:55):
Doug Hubler, a man who often gets, I guess, escalated to.
Escalated. That's a good way to put it. You're the escalation point that we'll get into,
but something we have been remiss on doing because of all of our special episodes
is we've had quite a few closings since the last time we announced.
(01:18):
So quite a few listings, quite a few solds. Yeah, and I think,
okay, so I'll go to the last two because I can't remember.
I don't have my list in front of me, but the last two, one, gosh,
I think you were involved. I was. I was, yes. Yes.
Wayne was involved.
Who else? It was a team effort. It was Wayne and I representing the seller side,
(01:42):
and Jay brought the buyer, who was actually a buyer of one of your listings about a year ago. Yeah.
We're going to need to get them a plaque on our wall. Yes. Multiple purchases.
They actually were looking at the plaques in the room, and were like,
well, we haven't made it up here.
Right, right. I'm like, you know, looking at these plaques, I think that Doug
(02:04):
needs to refresh these. Yeah.
We've talked about that. But yeah, it was an interesting deal,
real estate and business involved.
And one of the alluring factors for the buyer is that he had been running the
pool company that he acquired last year on your deal from about 25,
(02:25):
30 miles south of the southest point of Kansas City.
So if we were listing his pool company, we'd be Kansas City Metro.
But for anybody that lives in Kansas City Metro, they're like,
that's not Kansas City Metro.
So what this did is it actually moved him right in the heart of the – here's
(02:47):
a fun word – the confluence –.
Of how many highways? Three major highways throughout the city.
So the major highway that goes around the city, major north-south,
and then just kind of a major highway that has been hugely developed.
And as fate would have it, one of his key suppliers is four doors down from
(03:09):
where our cellar was. The other benefit too was just the ease of getting to jobs.
Plus their employees didn't have to drive clear out south to where they were
at. So it was so much better for everybody.
It's going to cut their costs. It's going to give them space to grow.
So it was a great deal for them. So he added on to the pool company,
(03:32):
the acquisition of the business was a flooring company.
And so something that he had mentioned with the pool company is that he is getting
people that now that they're hosting, put a pool in, all of a sudden you're-
Looking at other things.
We're coming up on, you know, we're right in the middle of summer here and the
pool parties are in effect, right?
So now that you have a pool, well, guess who's hosting all the summer get togethers?
(03:56):
Right. The people with the pool.
So now you've got people rolling through your house and you're like,
you know, I should probably go ahead and fix up that entryway or I should probably
get some new carpet or the hardwoods are looking a little.
Well, my floors are all wet. Yeah, now my floors are wet, so we should probably put some tile in here.
But no, it was a great transaction, and it was really enjoyable to work with Wayne.
First deal that I've worked with Wayne, and first one in a while that I'd worked with Jay, so...
(04:21):
It's funny how we see these people every day, but don't often really work together.
Well, and it is a lot of these deals. It is a team effort and there's a lot
of people involved on both sides.
So it does help when you've got people that you can help, you know, rely on to get through.
And you're kind of working with both sides. You've got the seller,
you got the banker, you got the attorneys.
(04:41):
And so having two or three people in the office working on it makes it go much smoother.
Well, we're getting out of the house a lot lately here too. So,
you know, we just got off of conference season and stuff like that.
And so, you know, there's a lot of people that are out traveling.
We're out visiting with this conference season. It's listing season.
There's a lot of sellers.
(05:01):
They kind of get those taxes back. They kind of get through Q1 into Q2 and they're
thinking like, okay, I want to want to start having the conversations a little
bit. They kind of ramp up.
And so we were out of the out of the office. And so my schedule,
Wayne's schedule, you know, with the travel that we both had,
we just thought it would be easier, better service, frankly,
(05:22):
to tag team on it. It worked out well.
And then Ron had one. Ron had a closing in Ohio.
It's something he's been working on for six months or so from the engagement.
He had a buyer on it right away.
And it just took some time to get through that deal.
And, you know, it was interesting. we've talked about attorneys killing deals
(05:44):
and that was one where initially seller's attorney.
Really was we thought for sure he's
going to kill it and he came back around and actually ended up being an asset
to to the deal it was a port-a-potty business in ohio and good size good-sized
business had been in operation for almost 20 years with the current owners and
(06:08):
and i think the guys that that are taking it over, you know,
plan to really expand it.
So it was a good, it was a good business.
People continue to have to use the bathroom, huh?
You know, it's recession resistant. I'd say that.
Well, you know, both of these lean into a little bit of what we wanted to talk about today.
And it's the use of a, the use of professionals.
(06:31):
And, you know, we'll talk about it from a broker standpoint,
but I think the example that I would share is in that deal that I just talked
about is we had some, we had some things that if you've never been through one of these.
The creativity that a professional can oftentimes bring to the table because
we have seen so many different deals and there's a lot of scenarios that we
(06:56):
haven't or that there's a lot of scenarios that we have that people just have never seen.
And if you've never experienced it, how do you get around it?
So the example that I had was the, one of the people that on this deal had an ex-wife on the deed.
(07:17):
Right. And so the paperwork that we had to get to find that was,
it was amazing the amount of paperwork that we had to prove that they were divorced. Mm-hmm.
I mean, that could have been a- And that she shouldn't have been on the deed?
That she did not need to sign the deed when the sale went through.
(07:40):
And it took quite a bit of navigating to work with the bank,
work with the title company, work with the seller to identify,
who needs to physically sign the transfer of this property.
You know, I've got a little different situation myself going on right now. Good business.
(08:05):
Buyer on it is really excited about it.
But we've got some emotions going on on both sides, and there's some trust issues.
And in this case, it's important to have an intermediary because having two people who.
You know, button heads, buyer and seller, they both want to get the deal done,
(08:29):
but their, their personalities are just, they're just not meshing.
And so having somebody like us in between kind of guiding and calming the waters
a little bit, and, and also trying to figure out, we have to have a discussion.
We have to have face-to-face meetings. We have to have phone calls.
(08:50):
There's going to be discussion. We have to get along.
And there has to be some trust built between the two parties.
And so having a broker in the middle is usually pretty helpful in those situations.
Because if it wasn't for, I'm not patting myself on the back,
but if it's not for the broker in the middle, this thing would just blow up and just be done.
(09:14):
And so we're a month or less than a month away from closing.
And it's still some rough water. So trying to navigate that almost daily.
And that kind of puts the stress on us.
That's our job. We're trying to help with that. And we know the goal for both
(09:35):
parties is just closing.
So we're here to make that happen. Yeah.
We talked a little bit in our live episode about the DIY, you know,
wanting to do it yourself and, you know, I'm going to save the cost. Right.
I recently did a home renovation project, a landscaping project around the house. Mm-hmm.
(09:59):
And by the time that I bought the materials, did the work, put everything in, I.
My lawn and landscape guy probably
could have done it for cheaper and it would have been better. Yeah.
You know, I mean, just the fact that it. Even if it would have cost more,
it would have been better probably, you know, hiring a professional, I would think.
(10:24):
I mean, I'm sure you have great landscaping skills, Andy, but.
It probably took me four times the amount of time that it would take him.
Yeah, for sure. And I had to go rent equipment.
I had to go watch YouTube videos and figure this out, right?
Because I'm doing this one time and, you know, it was one of those things where,
you know, the, the missus saw a video on, she needs to stay off Instagram.
(10:49):
She saw a video on Instagram and we're looking at it and like,
oh, it doesn't look that hard. We can do that.
Sure. That looks easy, you know? Well, it does after an edited video. Right.
And then it's like, oh, wait, I don't have that pointy shovel.
I have to go down to my dad's. Right. So then I've got to stop and go down to my dad's to get a shovel.
Yeah. And then I come back and then I get the pointy shovel and then,
(11:10):
you know, got, okay, now I've got this dug out.
It's like, okay, now I need to go borrow my dad's truck because it won't fit in the back of our.
Or how many times back and forth to the home improvement store or the nursery.
Ran out of screws. So I have to run back to Menards to get screws.
And so it's, in the end, it looks fine.
(11:34):
You know, we're happy we did it, but, you know, if you really step back and
analyze it, if I would have just worked with Brett to do this and budget in,
and it would have gotten done a lot better, a lot more professional because Brett has the tools.
Brett has the know-how. Brett's done hundreds of these.
(11:56):
Well, and what I like about hiring a professional, you've got somebody that
takes on some liability, some responsibility for the job too.
And so if something's not done right, like, you know, you got to make it right
and then, and then I'll pay you.
And I, I had a, uh, it's kind of funny. I had a landscaping project last year on my house.
First time we'd ever done this, you know, a large landscaping project,
(12:18):
but part of it was I wanted it done. I didn't want it to linger for two years
or three years as I'm trying to figure out the scope of this thing.
And I wanted somebody who had the experience, who I could rely on,
who could take responsibility for it, and I could point to and say,
hey, you had this guarantee.
(12:38):
I've got 20 dead plants, whatever, and come back and fix it.
And I don't have to worry about it. And it's done in, I mean,
a tenth of the time that it would have taken me.
Yeah, I think that, you know, anytime you're looking at the use of a professional
versus the use of, yeah, all I need is, you know, I do hear with the work that
(13:02):
we do, well, really all I need is a couple of attorneys.
Right. And attorneys don't have experience doing what we do.
And we want them to use the attorney.
And I hate it when somebody says, I don't need an attorney. I'm just going to
get this thing off of Google or whatever.
I've got a form. I'm just going to use it. And it's not specific to their business.
(13:27):
And they're going to rely on.
And so we require attorneys on deals. We want them to have an attorney.
It's another case of hiring a professional to make sure you're covered and both sides are covered.
Well, and I think the other thing too, the other value that we're going to bring
is just a screening of potential buyers.
(13:47):
I know that you were escalated to, as I alluded to earlier in the,
somebody needed to speak to the manager and they spoke, they wanted to speak
to the manager because on the surface, it does not appear that they are qualified
to be looking at the information and looking at the business that they're wanting to look at.
So they were told, yeah, you know, it just doesn't look like this is going to be a good fit. Right.
(14:12):
Because again, we know that when you're selling a business, this is not as easy
as, well, here's some money.
We know that there's going to probably be a bank involved and they're going
to go, now you've worked at Hallmark in the accounting department for 15 years.
Now, tell me what your HVAC experience is. Mm-hmm. Right.
(14:33):
Now, tell me why I'm going to give you a million dollars to go run an HVAC company
when your professional experience has been running your air conditioner. Yeah.
And- At a nice, cool 80 degrees. And working in an air-conditioned office at Hallmark. Yeah.
You know, and so that's a conversation we can have. have, if you were DIYing
(14:57):
this, if you were a seller trying to do it yourself, you're having to do that screening yourself.
Yeah. And while you're trying to run your business, right? And then you're taking calls or emails.
And I think in this particular case, Tom is running the deal and he knows for
this particular business, this industry is going to take specific experience.
(15:20):
Experience and if you don't have
that experience and you want the business you better be
ready to pay cash for it because they're not going to be a bank to do
the deal and we also know that that person that's inquiring so doesn't have
the right experience doesn't have the income or the the savings to make it work
(15:42):
but wanted information on the business and we're just not gonna you know We're professional here.
We're not just going to hand out that information to somebody that's not qualified.
Yeah. So the use of a professional, there's a lot of, there's,
it's kind of like, what do they say about a duck?
How on the surface it looks calm, but if you look under there,
(16:03):
the way those, they're just paddling, just, it's crazy. Crazy.
And that's kind of a lot of what we're doing is that, you know,
I had a conversation with one of my sellers yesterday.
I was like, Hey, I just want to let you know that I'm talking to a guy might need you next week.
Right now he's pushing back on the valuation.
(16:24):
So I'm going to go run that down for you before I bother you to come to a meeting.
And, you know, cause Like if we're 40% off and I know that, you know,
we're asking a million and this guy's going to offer 600,000 and I know that
my seller is not going to take less than 950,000 and,
(16:47):
you know, I can talk to this buyer and figure out, okay, the best this guy's going to do is 700.
We're never going to bridge this gap. There's no sense in introducing them. Right.
There's no sense in, hey, why don't you leave the office? Come on down here.
Let's have an hour meeting. Why don't you leave whatever you're doing?
Come on down here. Here, let's sit down. Let's take about three hours of everyone's
time for us to all get to know. Yeah.
(17:07):
That's part of our role, right? And it saves everybody time and headache.
And we want our buyers to understand that's what we're doing.
It's not that we don't want to do business with them, but we don't want to put
them in front of somebody where it's going to be an embarrassment.
Yeah. Well, you know, on a similar business, I had a buyer that this was one
(17:29):
that came back to market. it.
And the message I got from the buyer was, is he open to more creative financing than he was before?
And I was like, no, he's not.
So you should probably just move on to another opportunity because you're running
into a brick wall with this one.
(17:52):
He's not willing to do the deal that you're wanting to do.
He's not willing to sell or finance 90% of this. Right.
Or have you work in the business while you learn it and then buy in over time.
That's not what they're looking for. Yeah. So I think to sum it up is that you
(18:13):
can do these things yourself, but you're probably not going to get the results that you want.
And you're probably, unless the result you want is an ulcer and pulling your hair out.
And, you know, and, and this is, we just touched on one aspect of this is kind of the process,
you know, something else that we may talk about in the future is when,
(18:37):
when people do it on their own, there, there's going to be a value difference
on the business, what they could have gotten versus what they accepted.
Yeah, I mean, it's one of those things where we're going to run it through some sort of valuation.
And, you know, we've got a pretty good idea of what the market will be.
We know what the market is, for sure.
(18:57):
All right. Well, if you're interested in exploring the process and learning
about what it takes to sell a business and buy a business, get in contact with us.
Best way to do that is through our website, kcapex.com.
There's so many tools out there.
There's tools for buyers. There's tools for sellers. There's tools for people
that are just starting the process, wanting to know how's my business valued
(19:20):
and what will the buyer look for in that.
So a ton of great resources out there, the blogs, the podcasts,
of course, how to get in contact with the individual brokers and all of our active listings.
So if you're looking at buying or selling a business.
Music.
Music.
(00:10):
Brett to do this and budget in, and it would have gotten done a lot better,
a lot more professional because Brett has the tools.
Brett has the know-how. Brett's done hundreds of these.
Well, and what I like about hiring a professional, you've got somebody that
takes on some liability, some responsibility for the job too.
(00:32):
And so if something's not done right, like, you know, you got to make it right.
Music.
Welcome back to the Apex Business Advisors Podcast. I'm your host,
Andy Kavanaugh, joined, as always, by the president of Apex,
(00:55):
Doug Hubler, a man who often gets, I guess, escalated to.
Escalated. That's a good way to put it. You're the escalation point that we'll get into,
but something we have been remiss on doing because of all of our special episodes
is we've had quite a few closings since the last time we announced.
(01:18):
So quite a few listings, quite a few solds. Yeah, and I think,
okay, so I'll go to the last two because I can't remember.
I don't have my list in front of me, but the last two, one, gosh,
I think you were involved. I was. I was, yes. Yes.
Wayne was involved.
Who else? It was a team effort. It was Wayne and I representing the seller side,
(01:42):
and Jay brought the buyer, who was actually a buyer of one of your listings about a year ago. Yeah.
We're going to need to get them a plaque on our wall. Yes. Multiple purchases.
They actually were looking at the plaques in the room, and were like,
well, we haven't made it up here.
Right, right. I'm like, you know, looking at these plaques, I think that Doug
(02:04):
needs to refresh these. Yeah.
We've talked about that. But yeah, it was an interesting deal,
real estate and business involved.
And one of the alluring factors for the buyer is that he had been running the
pool company that he acquired last year on your deal from about 25,
(02:25):
30 miles south of the southest point of Kansas City.
So if we were listing his pool company, we'd be Kansas City Metro.
But for anybody that lives in Kansas City Metro, they're like,
that's not Kansas City Metro.
So what this did is it actually moved him right in the heart of the – here's
(02:47):
a fun word – the confluence –.
Of how many highways? Three major highways throughout the city.
So the major highway that goes around the city, major north-south,
and then just kind of a major highway that has been hugely developed.
And as fate would have it, one of his key suppliers is four doors down from
(03:09):
where our cellar was. The other benefit too was just the ease of getting to jobs.
Plus their employees didn't have to drive clear out south to where they were
at. So it was so much better for everybody.
It's going to cut their costs. It's going to give them space to grow.
So it was a great deal for them. So he added on to the pool company,
(03:32):
the acquisition of the business was a flooring company.
And so something that he had mentioned with the pool company is that he is getting
people that now that they're hosting, put a pool in, all of a sudden you're-
Looking at other things.
We're coming up on, you know, we're right in the middle of summer here and the
pool parties are in effect, right?
So now that you have a pool, well, guess who's hosting all the summer get togethers?
(03:56):
Right. The people with the pool.
So now you've got people rolling through your house and you're like,
you know, I should probably go ahead and fix up that entryway or I should probably
get some new carpet or the hardwoods are looking a little.
Well, my floors are all wet. Yeah, now my floors are wet, so we should probably put some tile in here.
But no, it was a great transaction, and it was really enjoyable to work with Wayne.
First deal that I've worked with Wayne, and first one in a while that I'd worked with Jay, so...
(04:21):
It's funny how we see these people every day, but don't often really work together.
Well, and it is a lot of these deals. It is a team effort and there's a lot
of people involved on both sides.
So it does help when you've got people that you can help, you know, rely on to get through.
And you're kind of working with both sides. You've got the seller,
you got the banker, you got the attorneys.
(04:41):
And so having two or three people in the office working on it makes it go much smoother.
Well, we're getting out of the house a lot lately here too. So,
you know, we just got off of conference season and stuff like that.
And so, you know, there's a lot of people that are out traveling.
We're out visiting with this conference season. It's listing season.
There's a lot of sellers.
(05:01):
They kind of get those taxes back. They kind of get through Q1 into Q2 and they're
thinking like, okay, I want to want to start having the conversations a little
bit. They kind of ramp up.
And so we were out of the out of the office. And so my schedule,
Wayne's schedule, you know, with the travel that we both had,
we just thought it would be easier, better service, frankly,
(05:22):
to tag team on it. It worked out well.
And then Ron had one. Ron had a closing in Ohio.
It's something he's been working on for six months or so from the engagement.
He had a buyer on it right away.
And it just took some time to get through that deal.
And, you know, it was interesting. we've talked about attorneys killing deals
(05:44):
and that was one where initially seller's attorney.
Really was we thought for sure he's
going to kill it and he came back around and actually ended up being an asset
to to the deal it was a port-a-potty business in ohio and good size good-sized
business had been in operation for almost 20 years with the current owners and
(06:08):
and i think the guys that that are taking it over, you know,
plan to really expand it.
So it was a good, it was a good business.
People continue to have to use the bathroom, huh?
You know, it's recession resistant. I'd say that.
Well, you know, both of these lean into a little bit of what we wanted to talk about today.
And it's the use of a, the use of professionals.
(06:31):
And, you know, we'll talk about it from a broker standpoint,
but I think the example that I would share is in that deal that I just talked
about is we had some, we had some things that if you've never been through one of these.
The creativity that a professional can oftentimes bring to the table because
we have seen so many different deals and there's a lot of scenarios that we
(06:56):
haven't or that there's a lot of scenarios that we have that people just have never seen.
And if you've never experienced it, how do you get around it?
So the example that I had was the, one of the people that on this deal had an ex-wife on the deed.
(07:17):
Right. And so the paperwork that we had to get to find that was,
it was amazing the amount of paperwork that we had to prove that they were divorced. Mm-hmm.
I mean, that could have been a- And that she shouldn't have been on the deed?
That she did not need to sign the deed when the sale went through.
(07:40):
And it took quite a bit of navigating to work with the bank,
work with the title company, work with the seller to identify,
who needs to physically sign the transfer of this property.
You know, I've got a little different situation myself going on right now. Good business.
(08:05):
Buyer on it is really excited about it.
But we've got some emotions going on on both sides, and there's some trust issues.
And in this case, it's important to have an intermediary because having two people who.
You know, button heads, buyer and seller, they both want to get the deal done,
(08:29):
but their, their personalities are just, they're just not meshing.
And so having somebody like us in between kind of guiding and calming the waters
a little bit, and, and also trying to figure out, we have to have a discussion.
We have to have face-to-face meetings. We have to have phone calls.
(08:50):
There's going to be discussion. We have to get along.
And there has to be some trust built between the two parties.
And so having a broker in the middle is usually pretty helpful in those situations.
Because if it wasn't for, I'm not patting myself on the back,
but if it's not for the broker in the middle, this thing would just blow up and just be done.
(09:14):
And so we're a month or less than a month away from closing.
And it's still some rough water. So trying to navigate that almost daily.
And that kind of puts the stress on us.
That's our job. We're trying to help with that. And we know the goal for both
(09:35):
parties is just closing.
So we're here to make that happen. Yeah.
We talked a little bit in our live episode about the DIY, you know,
wanting to do it yourself and, you know, I'm going to save the cost. Right.
I recently did a home renovation project, a landscaping project around the house. Mm-hmm.
(09:59):
And by the time that I bought the materials, did the work, put everything in, I.
My lawn and landscape guy probably
could have done it for cheaper and it would have been better. Yeah.
You know, I mean, just the fact that it. Even if it would have cost more,
it would have been better probably, you know, hiring a professional, I would think.
(10:24):
I mean, I'm sure you have great landscaping skills, Andy, but.
It probably took me four times the amount of time that it would take him.
Yeah, for sure. And I had to go rent equipment.
I had to go watch YouTube videos and figure this out, right?
Because I'm doing this one time and, you know, it was one of those things where,
you know, the, the missus saw a video on, she needs to stay off Instagram.
(10:49):
She saw a video on Instagram and we're looking at it and like,
oh, it doesn't look that hard. We can do that.
Sure. That looks easy, you know? Well, it does after an edited video. Right.
And then it's like, oh, wait, I don't have that pointy shovel.
I have to go down to my dad's. Right. So then I've got to stop and go down to my dad's to get a shovel.
Yeah. And then I come back and then I get the pointy shovel and then,
(11:10):
you know, got, okay, now I've got this dug out.
It's like, okay, now I need to go borrow my dad's truck because it won't fit in the back of our.
Or how many times back and forth to the home improvement store or the nursery.
Ran out of screws. So I have to run back to Menards to get screws.
And so it's, in the end, it looks fine.
(11:34):
You know, we're happy we did it, but, you know, if you really step back and
analyze it, if I would have just worked with Brett to do this and budget in,
and it would have gotten done a lot better, a lot more professional because Brett has the tools.
Brett has the know-how. Brett's done hundreds of these.
(11:56):
Well, and what I like about hiring a professional, you've got somebody that
takes on some liability, some responsibility for the job too.
And so if something's not done right, like, you know, you got to make it right
and then, and then I'll pay you.
And I, I had a, uh, it's kind of funny. I had a landscaping project last year on my house.
First time we'd ever done this, you know, a large landscaping project,
(12:18):
but part of it was I wanted it done. I didn't want it to linger for two years
or three years as I'm trying to figure out the scope of this thing.
And I wanted somebody who had the experience, who I could rely on,
who could take responsibility for it, and I could point to and say,
hey, you had this guarantee.
(12:38):
I've got 20 dead plants, whatever, and come back and fix it.
And I don't have to worry about it. And it's done in, I mean,
a tenth of the time that it would have taken me.
Yeah, I think that, you know, anytime you're looking at the use of a professional
versus the use of, yeah, all I need is, you know, I do hear with the work that
(13:02):
we do, well, really all I need is a couple of attorneys.
Right. And attorneys don't have experience doing what we do.
And we want them to use the attorney.
And I hate it when somebody says, I don't need an attorney. I'm just going to
get this thing off of Google or whatever.
I've got a form. I'm just going to use it. And it's not specific to their business.
(13:27):
And they're going to rely on.
And so we require attorneys on deals. We want them to have an attorney.
It's another case of hiring a professional to make sure you're covered and both sides are covered.
Well, and I think the other thing too, the other value that we're going to bring
is just a screening of potential buyers.
(13:47):
I know that you were escalated to, as I alluded to earlier in the,
somebody needed to speak to the manager and they spoke, they wanted to speak
to the manager because on the surface, it does not appear that they are qualified
to be looking at the information and looking at the business that they're wanting to look at.
So they were told, yeah, you know, it just doesn't look like this is going to be a good fit. Right.
(14:12):
Because again, we know that when you're selling a business, this is not as easy
as, well, here's some money.
We know that there's going to probably be a bank involved and they're going
to go, now you've worked at Hallmark in the accounting department for 15 years.
Now, tell me what your HVAC experience is. Mm-hmm. Right.
(14:33):
Now, tell me why I'm going to give you a million dollars to go run an HVAC company
when your professional experience has been running your air conditioner. Yeah.
And- At a nice, cool 80 degrees. And working in an air-conditioned office at Hallmark. Yeah.
You know, and so that's a conversation we can have. have, if you were DIYing
(14:57):
this, if you were a seller trying to do it yourself, you're having to do that screening yourself.
Yeah. And while you're trying to run your business, right? And then you're taking calls or emails.
And I think in this particular case, Tom is running the deal and he knows for
this particular business, this industry is going to take specific experience.
(15:20):
Experience and if you don't have
that experience and you want the business you better be
ready to pay cash for it because they're not going to be a bank to do
the deal and we also know that that person that's inquiring so doesn't have
the right experience doesn't have the income or the the savings to make it work
(15:42):
but wanted information on the business and we're just not gonna you know We're professional here.
We're not just going to hand out that information to somebody that's not qualified.
Yeah. So the use of a professional, there's a lot of, there's,
it's kind of like, what do they say about a duck?
How on the surface it looks calm, but if you look under there,
(16:03):
the way those, they're just paddling, just, it's crazy. Crazy.
And that's kind of a lot of what we're doing is that, you know,
I had a conversation with one of my sellers yesterday.
I was like, Hey, I just want to let you know that I'm talking to a guy might need you next week.
Right now he's pushing back on the valuation.
(16:24):
So I'm going to go run that down for you before I bother you to come to a meeting.
And, you know, cause Like if we're 40% off and I know that, you know,
we're asking a million and this guy's going to offer 600,000 and I know that
my seller is not going to take less than 950,000 and,
(16:47):
you know, I can talk to this buyer and figure out, okay, the best this guy's going to do is 700.
We're never going to bridge this gap. There's no sense in introducing them. Right.
There's no sense in, hey, why don't you leave the office? Come on down here.
Let's have an hour meeting. Why don't you leave whatever you're doing?
Come on down here. Here, let's sit down. Let's take about three hours of everyone's
time for us to all get to know. Yeah.
(17:07):
That's part of our role, right? And it saves everybody time and headache.
And we want our buyers to understand that's what we're doing.
It's not that we don't want to do business with them, but we don't want to put
them in front of somebody where it's going to be an embarrassment.
Yeah. Well, you know, on a similar business, I had a buyer that this was one
(17:29):
that came back to market. it.
And the message I got from the buyer was, is he open to more creative financing than he was before?
And I was like, no, he's not.
So you should probably just move on to another opportunity because you're running
into a brick wall with this one.
(17:52):
He's not willing to do the deal that you're wanting to do.
He's not willing to sell or finance 90% of this. Right.
Or have you work in the business while you learn it and then buy in over time.
That's not what they're looking for. Yeah. So I think to sum it up is that you
(18:13):
can do these things yourself, but you're probably not going to get the results that you want.
And you're probably, unless the result you want is an ulcer and pulling your hair out.
And, you know, and, and this is, we just touched on one aspect of this is kind of the process,
you know, something else that we may talk about in the future is when,
(18:37):
when people do it on their own, there, there's going to be a value difference
on the business, what they could have gotten versus what they accepted.
Yeah, I mean, it's one of those things where we're going to run it through some sort of valuation.
And, you know, we've got a pretty good idea of what the market will be.
We know what the market is, for sure.
(18:57):
All right. Well, if you're interested in exploring the process and learning
about what it takes to sell a business and buy a business, get in contact with us.
Best way to do that is through our website, kcapex.com.
There's so many tools out there.
There's tools for buyers. There's tools for sellers. There's tools for people
that are just starting the process, wanting to know how's my business valued
(19:20):
and what will the buyer look for in that.
So a ton of great resources out there, the blogs, the podcasts,
of course, how to get in contact with the individual brokers and all of our active listings.
So if you're looking at buying or selling a business.
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