Company: Regent Sheet Metal
Time to sell: Within 3 months
Offers: 3
Sold: Within 10% of appraised price
Customer
The owner acquired the business in 1975 and had grown the company to become the leading supplier of skylight systems in Queensland, with over 20 full-time staff members.
Background
At 70 years old, the owner’s thoughts had turned to retirement, and he was keen to sell. However, sales had declined due to a mechanical problem on a critical piece of equipment, causing an interruption in production. Additionally, his lease was due for renewal.
Brief
The owner’s accountant indicated that aside from the decline in sales, it would be challenging to sell without a new lease in place. After consultation with the owner and his accountant, we put together a compelling valuation based on the current and historical performance of the business.
Our approach
Working closely with the owner’s daughter, who he had entrusted to handle the sale, we put together a sales strategy. The business name had to be withheld as it could be easily identified.
Solution
We first approached the open market, our database, and utilised online marketing platforms; this proved to be very successful in creating broad buyer interest. However, there was trepidation due to the decline in sales. My suggestion was to approach interstate competitors, as this would mitigate the recent decline in sales. My Vendor was reluctant with this approach but trusted my judgement and gave me the go-ahead.
Result
We approached the larger interstate competitors. The historical performance and reputation of the business drew keen interest from those contacted. Once the ideal buyer was found, a meeting was arranged. An offer was made within four days of the meeting, and after some brief negotiation, an agreement was reached on price. The whole process was completed within 19 days of the initial meeting.
