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January 13, 2016 |
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When you get an acquisition offer, your eye will immediately go to the offer price. That’s only natural. But, there are two other negotiating points that could have just as large an impact on your windfall when selling your business.
Groot discovered the importance of all three when he went to sell JP’s Coffee Shop– a business that USA TODAY® voted one of “Top 10 Coffeehouses in America”.
In Jack Groot’s case, he sold his business to a supplier.
Your supply chain will include natural acquirers adjacent to your business. We’ll help you identify a short list of strategic acquirers during month 11 of The Value Builder System. It all starts with getting your Value Builder Score.
Jack grew up in Grandville, lives in Hudsonville, and owned his business in Holland MI for over 20 years. Jack Groot’s entrepreneurial role model was his father, Jake Groot. The family business of homebuilding and developing and selling real estate started in the late 1940s, shortly after Jake emigrated from the Netherlands. Jack credits his father for being a great example of problem solving, thinking outside the box, and how to do customer service. In 1993, Jack founded JP’s Coffee in Holland, named a “Top 10 Coffeehouse in America” by USA TODAY® Travel Destinations. He also created an international coffeehouse and business training school, and was an industry consultant, industry magazine columnist and blogger. After Jack sold his business interests, he returned to his homegrown roots in customer service, buying and selling real estate, as well as consulting for others in business start-up and operations.
How Cigar City Brewing Got Oskar Blues To Triple Their Acquisition Offer
Joey Redner started Cigar City Brewing in Tampa Bay in 2009 with a vision of being the first quality craft beer in Tampa at a time when craft beer was gaining popularity across the country.
How much would someone have to pay you to buy your business today? That’s the question Kris Jones was asked when billionaire Michael Rubin approached him about selling. Jones’ answer to Rubin’s question may surprise you.
Part of building to sell is knowing who might buy you, so you invest in valuable assets. Take Northern Lights as an example: after selling, their stores were closed because the acquirer wanted their wholesale distribution channel – not the stores.
Salsa Maker Gets Contract With Whole Foods On Her Way To A Surprising Exit
Despite having distribution at Whole Foods, Kroger, and Safeway, salsa-maker Julie Nirvelli found herself on the brink of bankruptcy. She sent a last-ditch email to four potential acquirers – and you won’t believe what happened next.
Wisdom From The Sale Of Six Businesses
Laura Gisborne has sold six companies, including The Art of Wine, a tasting room with a subscription-based wine club division. With $1MM in annual revenue, it was still a small business, when Gisborne reasoned it was the perfect time to sell.
How to Sell When Everything Is Broken
In 2004, Cesar Quintero started Fit2Go, a meal delivery service in Miami. The business delivered healthy meals to office workers in South Florida, and by 2017, Fit2Go was earning 12% profit on $3 million in revenue. That’s when Quintero decided to sell half of his business based on a four times EBITDA valuation.
Selling Your Company vs. Selling Your Product
Natalie Susi got her product Bare Organic Mixers, low-cal cocktail mixers into over 300 bars and restaurants in southern California before she sold. To maximize her take, Susi had to decide whether she was selling her company or her product.
What You Should Know Before You Pitch Your Company on Shark Tank (or Anywhere)
In 2013, Kate Field started The Kombucha Shop offering home-brew kits that people can use to make kombucha.
By 2018, the kombucha craze was in full swing and Field was invited to pitch her business on Shark Tank. Field asked for $350,000 in return for 10% of her company which was generating around $1.2 million per year selling kombucha kits. Field got an offer for $200,000 in cash and another $150,000 line of credit in return for 10% of her company from Barbara Corcoran and Sara Blakely, the Spanx founder who was a guest Shark that day.
Despite her success on television, a series of surprising events led Field to walk away from the Shark’s offer and sell The Kombucha Shop the following year. This episode is a raw account of the highs and lows of the entrepreneurial journey.
