This fed-up New York operator turned to VBB Advisors for a quick sale
David Perry had one particularly unique reason to sell his Rochester, New York, company. What was even more unique was Perry’s wish to get a deal done as quickly as possible. VBB Advisors went right to work and found just the right buyer for Perry.
Not happy with that “New York state of mind”
His unique reason to sell was a fundamental disenchantment with doing business in New York state. Perry was particularly unhappy with the state’s handling of the pandemic, which he felt was crippling to the business community.
Perry got into the vending business through a “business opportunity investment” around the turn of the century. “We quickly discovered that it was no opportunity at all, but we liked the business and decided to do it right,” said Perry. He went on to build a four-employee operation, featuring vending, micro market and OCS business. The business breakdown: 40% OCS, 60% vending and micro markets.
The company, Choice Refreshments, evolved into a solid two route operation in a town that was once the home of Xerox and Kodak. “That’s all changed,” Perry said. “Now it’s a mix of companies and most of our accounts were offices and workplaces. Rochester was good for us.”
Lack of trust
“You never know when the state will overact and shut us down again,” said Perry. “From my perspective, continuing to do business here was a risk not worth taking. When you can’t trust state government, you can’t invest in your business, and you can’t really grow your business.”
Reached out to VBB Advisors
“Ultimately, I decided to get out while the getting was good. That's when I reached out to Mike Kelner in January and we were sold by middle of March,” Perry explained. “I chose Mike because of his emails and newsletters. Right off the bat, I was pleased with his contract – it was simple, it was fair and there was no retainer, unlike some brokers.”
Insights, timeline and results
“One of the many things I appreciated about Mike was that he gave me some insights into selling a business, a probable timeline and an outside timeline. He said, “two to three months you should be able to sell your business in Rochester, worst case four to six.” We had a letter of intent in two months, and it was sold in three,” Perry said.
Beyond his issues with New York state government, Perry was ready for some freedom. With a small convenience services operation, there is little opportunity to get away from the business. “I just went to San Diego for six days and that's the longest vacation I've ever had as an adult,” Perry observed. “The weather was so beautiful in San Diego, it made me ask myself why I was stuck in the northeast all this time. Now we have the freedom to choose where we want to live and what we want to do next.”
A+ rating for VBB Advisors
“I have to give Mike an A+ rating. He gave me a timeline. He was realistic. He gave me a range of what we could get for the business after he did a thorough valuation,” Perry said. “That was it. We got some lowball offers and Mike kept working to get us a really interested party, which we got.”
“Mike said it would've been nice to have two or three companies bidding for the business, not easy with our timeline - but once we got what we were looking for, there was no need to push beyond that. I got a good price and working with Mike was a value,” he added.
Sleeping better at night
Perry noted one more big benefit to working with VBB Advisors. “It was great to be working with a sell side broker who only had our interests in mind. It was also nice to feel confident about our selling price based on Mike’s valuation.”
Some credit to the seller
Selling Choice Refreshments was a fun challenge for VBB Advisors because of the short timeline, but we were able to get it done right on schedule and deliver an excellent deal for Perry. Three things that Perry had going for him made the business more attractive and they serve as an important lesson for operators.
The equipment at Choice Refreshments featured the latest technology.
His product pricing was excellent. Perry had ramped up his pricing in the fall.
Perry had his “ducks in order” when he was ready to sell, making it easy for the buyer to evaluate the company.
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.”
My philosophy is driven by the fact that I do not represent buyers. I represent sellers. Operators just like you. Please consider what that means for you. I am not interested in just making a deal. I will not be jockeying from one side of the table to the other. As the seller – you know what you need to receive to move on, to retire, to go in a different direction – comfortably and confidently.
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 2022 Exit Strategy Planner. At the very least, it will provoke some thought, and this is a good time to think about your future.
Why make VBB Advisors a part of your team?
There are at least three very good reasons to talk to me about being a part of your team for this important chapter of your business journey.
Experience – I have done more significant deals than any other business broker in our industry.
Access to buyers – Throughout the pandemic, I have been in ongoing discussions with potential buyers, from both inside and outside the industry.
We are a sell side broker – We only represent the seller. Everything we do is on behalf of the seller.
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.
We specialize in sell-side advisory services and mergers & acquisitions. Our focus is on maximizing the realized value on behalf of our clients. VBB manages the entire process from valuing your business, assembling information, to qualifying prospective buyers, through due diligence, legal documents and closing. Our process is entirely confidential in order to protect the interests of our clients.
WHAT CLIENTS ARE SAYING
Mike Kelner was a Godsend to us, we have been thinking about selling our company for a few years but dreading the process, we procrastinated. We got Mike's number and called it. I cannot believe how fast, professional and kind he was. He found a buyer within a few weeks and we closed in a month. He was with us every step; he always returned calls and emails within minutes. I am so thankful for Mike, he was fantastic! Thank you Mike for everything! You are THE BEST!
— Greg and Connie Durheim, Fort Worth, TX
Business Valuations. VBB business valuations are based on financial analysis and actual market comparables producing extremely accurate estimates of value.
Financing Assistance. VBB will provide assistance to businesses in the acquisition of various types of financing. Services include preparation of loan packages and presentation to various funding sources.
Strategic Consulting. With over 30 years of experience in the industry, VBB brings to bear a wealth of knowledge in all aspects of the business.
Buy-Side Services. On a contract basis, VBB will assist qualified, well-financed buyers seeking acquisitions in the vending, office coffee and bottled water industries.
Preparing Your Business for Sale. VBB offers a two year strategic plan designed to prepare a business for a successful sale and maximize value on exit.