February 29th, 2012 by Andrew Rogerson | No Comments
Always run your business as if it is for sale in case you hear the magic words “I would like to buy your business; are you interested in selling?”
I was recently helping a business owner, and I will call him Rob, conclude the selling of his business with a great outcome because he always ran his business as if it was for sale. His story is also inspiring so let us have a look at the details.
The time is the day after Labor Day, 2008. Rob, as the new owner of the business is just closing escrow on his ‘Dream business.’ The excitement was obvious as Rob was concluding just on 8 months of work finding the right business, negotiating the transaction, obtaining an SBA loan, coming to terms with the landlord, completing due diligence and eventually closing the sale.
If you go back to August and September 2008 you will remember that this was what we now consider the start of the ‘Great Recession.’ The collapse of the housing market was beginning to gain momentum with the US Treasury seizing control of mortgage giants Fannie Mae and Freddie Mac. About a week later, the government saved AIG Inc, the investment banking company Lehman Brothers was not saved but allowed to collapse, and a new word was now on everyone’s lips called ‘bailout.’ This word had different meanings for different people depending on if you were the ‘bailor’ or the ‘bailee’ plus there were other chaotic happenings on Wall Street to the auto industry to Main Street. In simple terms, not the best place or time to buy a new business with a purchase price of $1,100,000.
In Rob’s situation, he was also excited as it meant relocating to a new town about 2 hours from where he lived as well as learning to own and operate his business.