Success Stories
A vending operator asked his bank for a $320,000 loan to buy a competitor. He was turned down. The business broker referred us to revise his business plan and loan request.
We invited four local banks to bid on his request. He got three terms sheets and the winner was his own bank. The combined cash flow funded an inventory/theft control system for a one-time savings of $80,000, reducing the cost of the buy-out. We succeeded by pulling in key industry data he had but did not know was important.
The partners of a consulting firm could not understand why their successful business had trouble affording them bonuses. They dreaded the annual line of credit renewal process with their bank. They also wanted to be acquired by a larger firm at a good value.
We captured four-years’ of tax returns in our Nimble Knowledge Toolbox, uncovering business and accounting practices that were problematic. We explained how to fund larger bonuses, while keeping the business “bankable” now and attractive for the future. In a few years they sold the firm for a very good price.
An MBA business consultant wanted to buy a specialty retail business. She was looking for a second opinion on the business’s value and loan request support. Our analysis of the business uncovered some potential risks and also opportunities for improving profitability and cash flow. She was able to negotiate a lower purchase price due to the risks. She obtained a $400,000 SBA loan due to the opportunities. She has owned the store for many years and turned it into a leader in her market.
A travel agent wanted to buy her own agency. Based on what the owner was taking, she thought she would be getting a raise, but she was risk averse.
We analyzed the broker package and developed key questions for owner and broker. Revenue trends appeared stable, but it was costing the seller more each year to keep the business. We recalculated realizable cash flow and start up cash needed to carry it through turnaround. The client chose not to make an offer when she realized good revenue is not enough to guarantee success.
A peer group of 8 business owners in the communications industry coached each other by sharing monthly financials and key performance Indicators (KPIs). They took turns compiling 8 large datasets into a 5-page, 12-column excel workbook. The data was overwhelming and did not show how to improve margins.
We imported their data into our Nimble Knowledge Toolbox® and mapped comparative financials and KPI trends for all members. We turned their KPIs into FIO-markers® (only 6 datapoints in three ratios) that spotlighted the big margin drivers. Their monthly conversations then focused on managing their FIO-markers to grow profits.
An expert in compliance retired from corporate and started a business to use his deep knowledge and stay busy. This industry requires highly specialized documentation skills and minute attention to detail. It offers thin margins in return. The company was losing money. He was funding losses from 30 years of wealth building – investments, retirement accounts, family and a local bank. His family wanted him to sell the business. His investment advisor wanted him to fix the business first and pay off key debts to sell at a higher price. The advisor put us together.
We identified inter-connected problems in sales, operations, finance and HR, plus being “held hostage” by a key employee. Internal conflicts kept him from outside sales. Our detailed report included six turn-around strategies, the cash flow impact of each and how to get their vital bank line renewed. To his credit, the owner paid off $187,000 of long-term debt in 12 months by implementing our recommendations. With a favorable income statement, he listed the firm for sale.
An industry consultant wanted to buy a landscaping business. The sales package from the business broker raised many concerns. The consultant engaged us to analyze 5-years of business history, contrasted with industry metrics, to craft a bankable counteroffer and lead the negotiation. With his firm purchase agreement, we were engaged to write a detailed 5-year projection, the loan request package and attend the bank presentation. The bank committed $700,000 in loans, structured to his advantage. This was more than he requested because repayment capacity was well-supported and made financial sense to the bank. He has quadrupled revenue and built value to fund his future retirement.