Many business owners decide to sell their companies in order to retire, especially in Minnesota where retirement often means moving south to avoid the snow. That was the case for Nick and Dawn Grossman when they decided to sell their company, Ed’s Towing Services. By its nature, towing is a 24/7, rain, snow, or shine business. After 20 years of ownership, it simply became more than Nick and Dawn were looking for. Instead of business ownership, their future plans became moving to Arizona and taking on only part-time employment.
Luckily, Nick and Dawn know where to turn to find help selling their business. They were aware that Calhoun Companies had successfully helped a local competitor sell their towing company years prior, and now it was their turn. Our agent Bob Conyers stepped up to plate and worked with Nick and Dawn, guiding them through the process.
“Ed’s Towing Services was in great shape for a sale,” said Bob Conyers. “The deal included the business as well as an office, shop and additional storage lot; Nick and Dawn kept clean financial statements that were easy to read; and the business had strong cash flow.”
With these factors in mind, Bob helped price the business for a premium sale. Unfortunately, reality sometimes gets in the way. The business went to market in Spring 2020, just in time for COVID-related shutdowns. The situation affected several months of revenue for the company, necessitating an adjustment to the asking price in order to make the business more appealing to potential buyers.
“When the shutdown happened, we needed to decide whether to keep the business priced as is and wait for the situation to improve, or adjust the price for a faster sale,” explains Bob. “The owners decided to adjust the asking price.”
The decision proved to be a wise one. An individual buyer with a great business background and financial strength emerged to purchase the company. Ultimately, Nick and Dawn were able to walk away with a great deal and make their move to Arizona.