In the inaugural “2025 Insights for Private Business Owners Report,” a survey from BNY Wealth Management, we get a good look at some first hand perspectives from 127 business owners, who are either contemplating or have completed a private business sale. The thoughts and preferences of this wide variety of business owners are an excellent reflection of exactly what so many operators are thinking.
Here are the key insights from the survey along with my thoughts on each point:
Securing a fair price is the top priority for business sellers, cited by 34%. But it is far from the only concern; in fact, almost as many (32%) said the impact on their employees was a priority.
Price is paramount in everyone's mind. At the same time, nine out of ten of my clients will say, “I want to take care of my employees. That may mean “I want to write them all a check.” It could mean they want the buyer to hire all of them. Bottom line – sellers have loyalty toward their employees, and they want to see them taken care of.
What makes it all possible is multiple offers and that is what our process at VBB Advisors is all about. Multiple offers translate to a higher selling price and that makes so many things possible in terms of taking good care of your employees when selling your company.
For all its stress, selling is a rewarding process. 94% of those who have sold a business are confident or very confident about their decision. 90% report that financial payouts met or exceeded expectations.
Everyone wants to feel good about the transaction – about selling their company - typically the most important deal of their life. I am proud to say that my clients report an extremely high level of satisfaction after working with VBB Advisors.
Here is an example of a VBB Advisors success story.
Why would an experienced M&A oriented entrepreneur like Kyle Loughran choose to work with a sell side broker like our firm instead of doing the deal on their own? Loughran outlined several reasons why he chose VBB Advisors. “M&A is hard,” said Loughran. “It takes a lot of time and focus. Mike Kelner is an expert in M&A and he will get you the best offer. I don't think a full-time operator is going to have the bandwidth to focus on a deal the way Mike does. That extra bandwidth on the front end of the deal translates to dollars,” he said. “For us, using Mike translated to multiple offers – the benefit was high six figures.”
An overwhelming majority agreed that assembling a deal team tailored to the specific requirements of the sale is crucial to ensuring peace of mind. Other important steps to prepare for a sale include working to increase profitability and revenue streams and improving financial records and transparency.
It makes sense and I write about it frequently. Get your team together – a solid M&A attorney, a CPA who understands the potential tax ramifications of your deal and of course, the leading sell side broker, VBB Advisors, who will deliver multiple offers for your business.
It is also critical to get your financial house in order and to fine tune your operation to reflect maximized ROI. Most notably, control what you can control. VBB Advisors can help.
While you cannot control your geographic location and the general economic outlook, there are many factors that can be controlled with long term planning. I work closely with my clients on the following areas, all of which represent defining characteristics of a premium acquisition that an operator can control to help generate the highest possible selling price. Here are some examples:
Contracts – Are your key accounts based on a handshake deal?Buyers want the security that contracts offer.
Recurring income – Buyers love any income that is totally predictable – rentals, delivery charges, service fees and subsidies area big positive.
Management business – Are you top heavy in this area? It canbe considered serious clutter to some buyers.
Gross Profit – There are many ways to pump this number up.As noted above, this is very important to buyers.
Choosing technology – Use the same big-name technologyproviders that the buyers are using. A budget-oriented technology choice is anegative factor that will require costly changes.
Pricing – Raise your prices to the appropriate level to makeyour company more attractive. Planning makes that possible.
Leases – Avoid long term leases as part of your long-termexit strategy. Buyers will definitely consider any burdensome leases a negative factor.
Selling is often the beginning of an exciting new chapter. Former owners remain highly entrepreneurial, with 59% actively planning new business ventures—most in new industries—and another 34% open to doing so.
Selling your business does not have to be the end of your professional career. It can be the end if you are ready for retirement. Making a deal that results in multi-generational wealth at best, or an extremely comfortable retirement at the very least, is a blessing - it is what we strive for.
As a sell side broker, I am here to represent your needs and wants as a seller. We can always work on the possibility of the seller maintaining a management position with the buyer for a period of time. It can ease the transition for both parties. No matter what your preference is, VBB Advisors will work to position you for a fantastic “next chapter.”
Are you ready to take that critical first step? That is often the toughest one to take.
Order my free 2025 Exit Strategy Planner. At the very least, it will provoke some thought, and this is a good time to think about your future.
Whatever your reasons are to sell your company - the timing, a sense of frustration, the desire to enjoy life or an interest in rewarding yourself for years of hard work – VBB Advisors can help you realize your goals.
I am Mike Kelner, the leading sell side intermediary in the convenience services industry. Let’s sit down and have a conversation. Use this appointment scheduler to set up a meeting with me.
Or – give me a call at 704-942-4621
