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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-respected computer / electronic sales and repair business with a long history of providing high levels of service to their customers throughout SW Missouri.  They have experienced technicians and quick turnaround on their work.  They are located near a major shopping hub and have some of the best traffic counts in the city.  This would be a great opportunity for someone who has computer technician skills and would like to be more involved in the business operations; or for someone who would like to run the business as a semi-passive owner focused more on strategic growth and development.  The current owner is semi-passive and is not needed in the store very often.  The owner would like to pursue other non-related business interests and is committed to a smooth transition of ownership.
 GREAT OPPORTUNITY! A well-established, FDA registered distributor of niche medical devices used in hospitals and surgery centers. Located in Missouri and in business for many years, the company serves customers in the U.S. and internationally and has multiple customer supply contracts. A new owner will benefit from the knowledge and experience of the current staff of employees. Located next to a major highway, the seller is marketing the real estate with the business as a turnkey package.
 

Business is priced at $710,000, plus inventory. The seller is offering the real estate – buildings and acreage – with the business for an additional $625,000. Discretionary Earnings increase to $301,000 with purchase of the real estate. 

The seller wishes to retire and will be committed to a smooth transition and adequate period of training. This business would be ideal for an individual with some medical knowledge and experience related to hospitals and physicians, coupled with sales and distribution experience.

 

 Facilities:  The building and land from which the business operates is owned by a related party of the seller and being leased by the business. Seller’s preference is for the building and the business to sell to one buyer as a package. Annual rent income generated is approximately $80,000, representing a great real estate investment opportunity. Construction is steel frame, metal siding and sloping roof.

 

 

 

 

 

 

 

An established Farmers Insurance agency in Branson, Missouri, operating in the market area for 20 years. Complete turnkey operating agency includes all furniture, equipment and tools to conduct business.

 

Farmers Insurance is an industry leading carrier, offering some of the best products and training in the insurance industry, as well as one of the strongest reputations in service and claims handling. Farmers has a highly rated training program for new agents; therefore, insurance experience is not required. A buyer with strong business knowledge and experience, coupled with a strong work ethic are the keys to long-term success in this business.

 

Size of the book is approximately 1,000 policies. The buyer would receive a substantial commission boost from Farmers, over and above the normal commission structure for policies written by the new owner. This enhanced commission structure may possibly continue for a period of up to 18 months. There is also a $10,000 cash bonus paid by Farmers to the new owner once their agency is established and passes an agency audit.

 

The picturesque Branson, Missouri area is a thriving, pro-business community. Maintaining the agency at its current city-center location will be advantageous. The energy of a new, entrepreneurial minded agency owner represents a notable opportunity for writing new policies.

 

Seller wishes to retire and willing to provide training, transition and client retention support for several months post-closing.

Experience the best in authentic Italian cuisine and atmosphere at this Restaurant and Bar located in Springfield, MO.  Step inside and immediately get that “I could be in Italy” feeling.  Taste this Restaurant’s food and you are!  There is a loyal clientele built from over a decade’s fine service. The current owner rarely works in the kitchen.  The head chef and kitchen manager have been with the Restaurant for several years.  

 

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
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