Andy and Jessica welcome you to another episode of The Deal Board Podcast; this time, they are sharing the 10 reasons why this is a great year to sell in a market that has never been seen before. They are accompanied by Peter Lehrman, sharing his pulse on the M&A market. Peter is the CEO of AXIAL, which is an M&A portal that helps buyers and sellers make deals, and is a great partner of Transworld Business Advisors.
Listing of the week: Sam Curcio (New York) is selling a clothing retailer with three locations that offer a green solution to clothes shopping, which is the vintage and second-hand market. They do 20% of their sales online, which can be expanded. Total sales: Over $3.5 million. SDE: Over $1.6 million. Asking Price: $8 million with a downpayment of $6.5 million. The business is prequalified by two SBA lenders. It comes with $225,000 worth in inventory. This business has been working for the last 10 years. Call Sam Curcio at (646)470-9433 or email scurcio@tworld.com.
Key takeaways:
[1:40] Reason #1: Inventory is low (historically low!)
[2:34] Reason #2: If your business is making money it is the time to go!
[2:52] Reason #3: Because there is less inventory, valuations are creeping up.
[3:37] Reason #4: Interest rates are low.
[4:20] Reason #5: There is tons of money on the street.
[6:07] Reason #6: It is not always going to be a great time to sell.
[8:45] Reason #7: More business disruption is on the way.
[10:59] Reason #8: Hiring opportunities are scarce.
[12:30] Reason #9: Haven't we seen enough? It is time to go!
[14:40] Reason #10: Life is short.
[16:18] Peter, founder of AXIO.
[17:44] Peter shares the story of AXIO.
[19:55] Peter shares why the market is great right now.
[23:03] What are the trends in 2021?
[26:30] What does Peter see moving forward?
[31:20] The average sale price increased by 40% to 50%.
[34:57] Peter talks about private equity historically.
[38:53] Deal of the week: Jessica Starks (Michigan) closed a business on metal artwork that ships its products throughout the USA. The buyer was a small equity group looking to grow small to medium size businesses. Price: $5 to 6 million range.
[42:45] Listing of the week: Sam Curcio (New York) is selling a clothing retailer with three locations in the vintage and second-hand market. Total sales: Over $3.5 million. SDE: Over $1.6 million. Asking Price: $8 million with a downpayment of $6.5 million. The business is prequalified by two SBA lenders. It comes with $225,000 worth in inventory.
Mentioned in this Episode:
Subscribe to The Deal Board Podcast YouTube Channel
Call us — (888) 711-9018
Email us thedealboard@tworld.com
Call Jessica Starks at (517) 492-0039 or email jstarks@tworld.com
Call Sam Curcio at (646)470-9433 or email scurcio@tworld.com.
Tweetables:
"When inventory is low, there is less competition for your business." #thedealboard #transworldbusinessadvisors #business #timetosell
"Some of the sellers have better businesses today than they had 12 months ago" #thedealboard #transworldbusinessadvisors #business #timetosell
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