Home : Springfield Area Business News : Optimism Soars for Business Sales in 2017

Optimism Soars for Business Sales in 2017

3/1/2017

Optimism Soars for Business Sales in 2017

According To The Market Pulse Quarterly Report (Springfield, MO)  March 1, 2017 - Nearly three-quarters (74 percent) of business brokers—professionals who aid in the buying and selling of businesses—expect an increase in new clients coming to market in 2017, according to the quarterly Market Pulse Report published by the International Business Brokers Association (IBBA), M&A Source and the Pepperdine Private Capital Market Project.

Compared to one year ago, brokers are feeling an increased sense of optimism regarding closing rates, business exit opportunities and business conditions. When asked at the end of 2016 about their outlook for 2017, three-quarters of respondents said they expected a net increase in new deals, compared to 60 percent who expressed optimism for 2016.

“Small business optimism is on the rise following the election,” said Gary Rogers, CBI & M&AMI, Kingsley Group, Springfield, MO, member of IBBA & M&A Source. “If President Trump is successful in fulfilling his campaign pledges to lower taxes and create a more business-friendly climate, we should see increased activity in the market. If the corporate tax rate drops from 35 percent to 15 percent, as he has proposed, businesses will have more capital to push into expansion and acquisition.”

The number one reason sellers go to market consistently remains retirement. In Q4 2016, respondents were asked for the first time how many of their clients had planned for a business sale. Responses showed that fewer than half (43 percent) had an intentional, proactive exit strategy.

“We are seeing that many retirement sales are rushed, rather than thoughtful, planned events,” said Lou Vescio, CBI, M&AMI, Principal, Coastal Business Intermediaries, Inc., IBBA Chair. “My concern is that business owners who do not plan ahead for their retirement typically get a much lower value because they decide to quickly sell their business due to high emotion, pressure or burnout.”

The Market Pulse Report compares conditions for businesses being sold on Main Street (values of $0-$2MM) to those being sold in the Lower Middle Market (values of $2-$50MM). The Q4 2016 survey was completed January 1- January 15, 2017 by 350 business brokers and M&A advisors, representing 39 states.

About International Business Brokers Association (IBBA) and the M&A Source

Founded in 1983, IBBA is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage and mergers and acquisitions. The IBBA is a trade association of business brokers providing education, conferences, professional designations, and networking opportunities. For more information about IBBA, visit the website at www.ibba.org or follow the IBBA on Facebook, Twitter, and LinkedIn.

Founded in 1991, The M&A Source promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs, and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions. For more information about the M&A Source visit www.masource.org, or follow The M&A Source on Facebook, LinkedIn, or Twitter.

About the Pepperdine Graziadio School of Business and Management

A leader in cultivating entrepreneurialism and digital innovation, Pepperdine Graziadio School of Business and Management focuses on the real-world application of MBA-level business concepts. The Graziadio School provides a student-focused, globally oriented education through part-time, full-time, and executive MBA programs at five Southern California locations and at Silicon Valley and Santa Barbara campuses, as well as through online and hybrid formats. In addition, the Graziadio School offers a variety of master of science programs, a bachelor of science in management degree-completion program, and the Presidents and Key Executives MBA, as well as executive education certificate programs. Follow the Graziadio School on Facebook, Twitter at @GraziadioSchool, Instagram, and LinkedIn. 

About Kingsley Group

Kingsley Group has been the small business merger and acquisition specialist in Southwest Missouri for 35 years. They represent clients in their search to sell and acquire companies. Assisting in valuation, defining marketing strategy, financing, and closing each deal are all steps in Kingsley’s processes while always keeping the transaction details confidential. Kingsley Group’s brokers are all uniquely qualified to assist their clients in planning exit strategies and the eventual sale of the business.  More information on Kingsley Group can be found at www.kingsleybrokers.com.

 

Contacts:        

Gary Rogers, CBI, M&AMI               

Owner – Kingsley Group                   

Member IBBA / M&A Source                        

(417) 889-9400                                  

gary@kingsg.com                             

 

www.kingsleybrokers.com                 

 

 

Featured Listings

This is a well-built operation that has a corner on their market area.  For the last 9 years they have built a strong brand in the communities they serve and have seen growth through stable repeat business and word of mouth advertising.  With exception to a couple weeks in May the owner is not driving and delivering inflatables unless he has to.  His primary role is managing his employees and schedules.  They have an office manager that also works as an inside sales person; however, many of their customers have been repeat customers for years and will book parties well in advance.  On average the owner spends about 20 hours per week working in the business.  There are good growth opportunities in the surrounding communities.  The owners have opted out of reaching into these areas too much, as the growth from their current market has been acceptable.  So if you are looking for an opportunity to own and manage a successful rental business this is your chance.  The seller is committed to a smooth transition of ownership.

 This is a great opportunity for an individual or individuals that are seeking a life style change and are passionate about restaurants.  The Restaurant is located on Table Rock Lake and is situated near a public boat dock.  The entire restaurant and patio seating area has been completely renovated and significant exterior updated and signage has been added.  This is a clean well organized restaurant with "Zero" health inspection issues.  There are also newly updated living quarters (app. 2,500 SF (M/L) incorporated within the same building as the restaurant.  The current owners are relocating.

 This popular resort / bar and grill is a must see destination for all travelers to this popular lake.  The property is in mint condition and offers a huge amount of growth potential.  Currently the business operates as a seasonal cash cow generating $3 MM (+/-) in revenue and $1.63 MM (+/-) in earnings per year (5 months per season).  The location has grown due to the beauty of the property, consistently great service, and fun atmosphere. 

The main role of the current owner in recent years has been property promotion and development.  He will help out on busy days acting as a floor manager and filling in anywhere that needs him.  The numbers shown reflect hiring a floor manager to create an even more passive opportunity for the next owner.  The numbers reflect a more passive owner who is not required to work in the day to day operations.  With the necessary management already accounted for in the numbers, a new owner could travel and manage from afar with proper personnel.  Upon transition a new owner would need to replace the current office manager and restaurant/bar manager as well as hire a floor manager (all of which are accounted for in the earnings represented).  The current owner and managers are willing to provide a reasonable transition period to get any replacement personnel trained and up to speed.  The owner is ready to pursue other business interests and is committed to a smooth transition of ownership.

*Real Estate is included in the purchase price:

Total Land:  27.81 Acres (M/L)
4.05 Acres (M/L) Developed
22.76 Acres (M/L) Ready for Development, Utility Hookups in Place
1 Acre (M/L) Across from Road Entrance. Billboard included.






 

 This medical testing clinic is among the best in the state.  Their customer base is roughly 80% cash at time of service and 20% billed monthly.  This income comes from hundreds of different referral sources with no significant customer concentration.  They have high profits and stable revenues due to the consistency and type of services provided such as (*Note: the Discretionary Earnings number assumes an active owner with a certification of Nurse Practitioner, Physician’s Assistant, Chiropractor, Physician or any other certification that would allow them to perform DOT physicals them self to replace the current active owner):

 

-         DOT Physicals and Mandated Drug and Alcohol Testing (also other work related physicals and drug screenings)

-         Attorney / Court Mandated Testing – over 300 attorneys refer this work.

-         State Children Services

-         DNA / Paternity Services

-         Many other services

 

There are many avenues that a new owner could grow this business beyond what it is now.

-         Accept billed clients – The owners have moved away from billed clients and primarily focus on pay at time of service customers.  Most in this industry pursue larger clients that require monthly billings.  If a new owner wanted to pursue this business there is a very large opportunity available for new contracts.

 

-         Offer Mobile Collections – Many companies in this arena will offer mobile collections.  The owners of this business have not had the desire to introduce this service, because they have been very comfortable with operations as they are.

 

Additional services someone could offer such as:

-         Walk-in Clinic – Health Care

-         Lab Draws – Cholesterol, Sugar, Etc.

-         Mobile Services

-         Immunizations

-         Immigration / Ancestry Testing

-         Insurance Reimbursed Care

-         Workmen’s Comp

-         Employer Care

-         CPAP / Sleep Studies

-         Respiratory Mask Fit Testing

-         Spirometry

-         Background Checks

-         Life Insurance – Health Screenings

-         Nurse Practitioner / Physician Assistant / Physical Therapy / Occupational Therapy

-         Substance Abuse Counseling

-         Student Health Services

-         OSHA (i.e. Hearing Tests and More)

-         Fingerprinting

-         Multiple Missouri State Contract Options for testing and screening.

-         Multiple DOT Contract options for monthly billing clients

 

The current operation is one of the most profitable companies we have found in this industry and offers some serious growth potential.  The owner is looking to retire and is committed to a smooth transition of ownership.

 

Resources

Demographic and Statistical Profile as published quarterly by the Springfield Area Chamber of Commerce - Springfield Business Development Corporation

The Small Business and Technology Development Center at Missouri State University specializes in providing one-on-one consulting that is comprehensive and individualized to meet the particular needs of business owners and entrepreneurs.  
Continue to the SBTDC Website.

Kingsley Group is committed to maintaining the confidentiality of each client's business information. We will request specific background information from you regarding financial and operating capabilities.

IBBA M & A Source Springfield Chamber of Commerce
About Us | Contact Us | Privacy Policy | Site map | Disclaimer
Site Design, CMS and Development: FletcherGrant.com, Graphic Design: ChristianSoulliere.com