Achieving a Good Business Sale

Case Study

Achieving a good business sale even when business is not profitable

Problem

Profitable businesses are bought and sold on a multiple of average maintainable earnings, but what if the business is losing money?

Mum & Dad business in removals & storage operating at a loss. Assets assessment revealed:

  • Active database generating leads and new work
  • Services offered include long term qualifying storage rental but the volume was not sufficient to cover rental costs.
  • Removal business highly competitive putting pressure on the margins required to win jobs
  • Loss situation unsustainable and owners wanted to move on

Solution

  • Sold as an “add on” business to an existing removals and storage company operating in the area
  • The purchaser could increase revenue at a marginal cost because they already had unutilised space available
  • The purchaser bought a phone line that rang and new data base to mine which was of value to them
2017-03-03T12:23:40+00:00
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