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There has never been a better time for an operator to sell a business

Nothing lasts forever. Right now - market conditions are driving up valuations and creating a once in a lifetime opportunity for operators who chose to sell their business. Why is this happening? The answers may surprise you, but it is all good news.

I know it is a strong statement. “There has never been a better time for an operator to sell a business.” At VBB Advisors, we’re the leading business intermediary for the convenience services industry and the only dedicated sell side broker. With almost four decades of experience behind us, we have seen the ebbs and flows of the mergers and acquisitions environment. We can tell you with confidence - There has never been a better seller’s market for operators.

There is one obvious question we are getting from operators who are trying to decide if this is the right time to sell their business: “How is it possible, after the pandemic, a slow return to the workplace and constant talk of a recession, could company valuations in our industry be at an all-time high?”

The answer is simple. Competition for acquisitions has created an unprecedented seller’s market.

Here is what I have what observed, learned and concluded about the current market condition:

What I have observed

There are four to seven major players when it comes to acquisitions in our industry. We have a unique situation right now, as every major player is in the game. Not one of them is on the sidelines. Every major M&A player wants a shot at deals that are attractively presented.

What I have learned

We have seen numerous multiple offer situations in the past several months, with one major player bidding against another. We have also seen more back up offers than ever before.

I have been asking CEO’s of the leading companies to explain why they suddenly have such a ravenous appetite for new business. Why is any decent operator now a prime target for acquisition?

Here are some of the answers I have received:

  • “It is purely defensive – we need to secure as much market share as possible.”

  • “Eliminating strong competition only strengthens our position in a market area.”

  • “We have pressure from many directions to meet our sales and profitability objectives.”

  • “When business comes back, and it will come back, it will come back stronger than ever.”

This M&A market condition has created an incredible opportunity for operators who are ready to move forward with a thoughtful exit strategy.

What I have concluded

Based on the response to the VBB Exit Advantage, our new program, just launched on February 1 – we are perfectly positioned to help operators capitalize on the current opportunity. We have seen a tremendous response and a surge of interest from buyers. VBB Exit Advantage is resonating with operators who are ready to sell. In terms of engaging new clients, VBB Advisors is “hitting it out of the park” right now. For VBB Advisors and our clients, this is an exciting time!

Our process makes the difference

As I noted above, “Every major M&A player wants a shot at deals that are attractively presented.” When you work with VBB Advisors, you can be assured of an attractive presentation that is perfectly suited to the current buying frenzy. We set the table for buyers with a process that mirrors what is done in the investment banking community – a very sophisticated approach.

  • It starts with a blind teaser notification with general information about the entity that is for sale. Interest is created and buyers learn about the opportunity, without any specific information.

  • We then send the non-disclosure agreement (NDA) to all interested parties.

  • Once the NDA is signed, we give a buyer access to the Confidential Information Memorandum – (CIM) a 20-to-40-page report with comprehensive, specific, company information and data.

All potential buyers gain access to a virtual data room and receive notifications about any additional documents as they are added. Typically, buyers have answers to their questions before they can even ask them. They get solid information that is critical to properly evaluating the deal.

Our process has endeared us to the big players in the industry – the active buyers. It provides them with a comfort zone – which makes it much easier to get a deal done in a timely fashion.

Then of course, there is the VBB Exit Advantage, which starts months before you officially put your company on the market for sale. The VBB Exit Advantage is a customized approach that emerged in 2022, created for a couple of very smart operators who recognized that if you want to maximize the selling price of your business, you need to take a deliberate and thoughtful approach to your exit plan. It worked so well, we decided to make it the standard approach for any operator who wants to take the most professional route and ultimately, experience a business sale that will exceed expectations.

It’s a $10,000 value, a tailored exit planning program, ultimately free to any operator who works with VBB Advisors on the sale of their business. I’m happy to discuss the VBB Exit Advantage, so give me a call.

Check out this 2022 Interview from the NAMA Show

Our Philosophy at VBB Advisors

“No matter what is going on with the economy or the world, it is time to sell your business if you are ready and we can make the right deal, a deal that makes sense for you, your family and your company.”

Buyers come to me because they know that I serve sellers who have thoroughly and thoughtfully considered their exit strategy with my help. That is the type of seller that you want to be – a seller who has their ducks in order, has taken steps to make their business as attractive as possible and a seller who values their employees enough to make a deal that everyone will feel good about.

Take that critical first step. That is often the toughest one to take.

Order my free 2023 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.

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