Finding the Right Fit
Retirement is the primary motivating factor for business owners to sell their companies. It’s no surprise considering many owners are baby boomers nearing retirement age, and they have been waiting for the optimal time to sell and move on to the next chapter in their life. This was the case for Tim and Rick Benson, owners of Designer Iron, Inc.
Tim and Rick had previously listed their company for sale with a different business broker but did not find the success they were looking for. Despite the business being in good shape, a year went by without a deal. When the listing expired, they turned to Calhoun Companies.
“All the pieces were in place,” said Chris Lappen, the Calhoun Companies agent who worked with Tim and Rick. “The company was healthy, and a strong market helped drive a premium price for the business. All they needed was the right agent.”
Designer Iron was well positioned for a sale. The company employed an experienced and dedicated staff, there was a strong customer base, the financial statements were well prepared, and the facility was in a great location and well suited for their operation. The company even included real estate and inventory in the sale. That’s why the business received multiple offers within the first 30 days of being listed by Calhoun Companies. Ultimately, the buyer tuned out to be a locally-based individual with a business ownership background and an interest in the fabrication and construction industries. He inquired through an online advertisement within two weeks of the business hitting the market, and within 30 days an offer was agreed to between buyer and seller.
The deal structure came together quickly, and with Chris’ expert guidance and the commitment of all parties, financing and due diligence followed, and the deal was completed. Both partners were able to exit the business in a relatively short time frame, and received a great price for the business. The employees and legacy of Designer Iron are in good hands, and the company continues to thrive.