August
2016

Business Confidential is compiled from information picked up by Carl Grimes and other CBI Team members on the streets, in the offices and around Northwest and Central Arkansas, and Northeast Oklahoma. The names aren't being revealed to protect the innocent (and sometimes the guilty!).


Dateline:Northwest Arkansas
All the national economic news touting Northwest Arkansas as one of the top growth areas in the country for the next 10 years has buyers looking at businesses here. In the last couple of weeks we've entertained buyers from New York, Chicago, and other major metro areas. The Word is out, business is GOOD in Northwest Arkansas. Now is a great time to sell. 


 

Dateline: Arkansas
No bragging, just facts: Others brag about selling more businesses...we prove we do it, and if you can prove it, it ain't braggin. A short list of the businesses sold by Confidential Business Intermediaries/The CBI Team: Sunny Side Pool Service, CW Sports Graphics, Brad's Tire & Automotive, J. Gumbo's, Aquaticare, New Smile Family Dental, Sport Shop, Mix N Pack, Luigi's Pizza & Pasta, Barker Family Dentistry, Cabinets by Lane, Indian Springs Tag Agency, Guido's Pizza, HCS Auto Repair, Hidden House Products, Midnite Sun tanning, Old Mill Bread Company, REB Quarry, Marsh Racing Tires, Central Fastening Systems, Amerispec, AAA Tents For Events, Just For Fun Entertainment, South's Healthfoods...and many more. Click here to see a more complete list of businesses sold
 

Want to reach hundreds of business owners and buyers?

Contact us to find out more!


BIG BUYERS!
 
About These Buyers:
Our network of buyers consistently target acquisitions in a broad range of industries and sizes. This month we're highlighting a firm with a wide range of interests including healthcare and technology solutions. 

This company is focused primarily on growing businesses that are on the cutting edge of innovation. They are searching for the next big breakthrough, whether that is a new treatment option, or an innovative payroll solution this company is interested. Additionally they specialize in resolving complicated organizational and governance issues which may give other investors pause.  

If you are currently engaged with or aware of businesses that may fit the criteria above, please contact us immediately to discuss!

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Ask the Expert!
Q: Why must I provide a (PFS) personal financial statement before I get to look at one of the businesses you have for sales? 
A: We understand it makes folks nervous to disclose personal information. However, before we take an engagement to sell a business we require the seller to produce 3  years of tax returns with underlying financial statements and balance sheets and a YTD (Year to Date) P&L (Profit and Loss Statement) with comparison to the same period in the previous year. The seller is prepared to sell when we take an engagement. 
So, Sellers ask us to require buyers to prove they have the financial resources to buy the business about which they inquire. A PFS (personal financial statement) will tell us that. 
We don't share your PFS with the seller until an offer is made on the business. The sellers depend on us to make sure we're not releasing their confidential business information to folks unless they have the resources to buy. 
 
 


We want to hear from you, our readers! Send in your questions to info@cbiteam.com and we'll have your answers in our next newsletter.

Need some encouragement?
Contact us at 877-582-5200 or e-mail confidential@cbiteam.com for a no-obligation, confidential consultation.



 

Henry Abstract and Title in Nashville, Arkansas recently transferred ownership from Jim and Dede Guffy to Cathy Loe, Patricia Harris, and Judge Randy Wright of Hope, Arkansas, owners of Hempstead County Title. 

The business was sold thanks to the efforts of Confidential Business Intermediaries/The CBI Central Arkansas Team Managing PartnerConnor Grimes and Senior Intermediary Shep Campbell. CBI
 Founder, Carl Grimes, started The CBI Team business brokerage firm after he sold Greer Abstract & Title in 1994, thus The CBI Team is experienced in helping sellers and buyers of title companies. 

Campbell reached out to Jim Guffy through a cold call to see if he had any interest in selling his title company. Jim responded he did, set a meeting with CBI of Central Arkansas and drove to Little Rock to meet with Shep. Following the meeting, CBI of Central Arkansas was engaged by Jim and Dede to confidentially sell Henry Title. Henry Abstract and Title specializes in real estate closings and has been operating in Nashville since the 1940s. Using the CBI database with thousands of registered buyers, coupled with aggressive local confidential marketing through direct mail and dialing, several buyers were engaged with two offers being presented. However, the third time was the charm as the perfect buyer for Henry Title was found in nearby Hope, Arkansas. Campbell, along with Grimes, helped negotiate and structure the deal for Jim and Dede and in the end was able to successfully reach an agreement between the Guffys and the owners of Hempstead County Title. Henry Abstract and Title officially changed ownership on Friday, July 8th, 2016.

The CBI Team has successfully sold many title companies, as well as hundreds of other businesses over the last 22 years. If you're interested in getting more information about how to sell your business or find a business to buy, contact us today at info@cbiteam.com


The CBI TEAM had some fun together at Arvest Ballpark on Sunday July 24th. Team Members and their families from Northwest Arkansas and Central Arkansas had a great time despite the heat. 

Recently the Confidential Business Intermediaries/The CBI Team contacted our network of lenders with a nearly 3 million dollar loan opportunity. In less than 24 hours more than twenty lenders had asked to take a look at the deal, and were invited to submit proposals. This is the power, of our proprietary Loans4Business Program (www.cbiteam.com/l4b).

Currently our client is reviewing the loan proposals, and picking the very best deal possible. If you need to raise capital for the purchase of a business, or just to jumpstart your existing business, let The CBI Team shop your deal to more lenders in a day that you could see in a week. Contact your local CBI Team office, or email info@cbiteam.com for more information. 

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The Power of Business Valuation
 
by Justin Cowell  Advisor- ACT Financial Services

As a business owner, your business is probably your most valuable asset. For many business owners, 70%-90% of their net worth is tied up in their business. That being said, would it surprise you to know that over 75% of business owners do not know what their business is worth? It's true! the reason that most businesses fail due to lack of planning. In fact, according to a 2012 Harvard Business Review online article titled, "Avoid the Traps That Can Destroy a Family Business," more than 70% of family businesses will not survive the transition to a second generation and nearly 90% fail to transition to a third. So, for the next few minutes that I have your attention, I want to talk to you about the power of business valuation, because it is the cornerstone of financial planning when it comes to your business and your financial future. 

The working theory is that a business valuation is only needed when the owner is ready to sell. However, that couldn't be further from the truth; especially in the case of multiple owners! Often, when I'm talking to owners of a business, I ask one of the owners this question. "So, how would you feel about being in business with your partners' wife, should something happen to your partner?" They usually look at me like my hair is on fire! But, that's exactly what would happen if one of the partners met with maker prematurely, and the proper buy-sell agreement hadn't been established. Yet, how do you know how to structure a buy-sell agreement if you don't know the value of what will be bought and/or sold?
 

Another area where business valuation is critical is helping a business owner know the value of what they are protecting. A surprising statistic is that 50% of small business owners are underinsured, and I
 would venture to guess the culprit is that the business owner(s) doesn't have a grasp of what their business is worth. 

A business valuation can also protect you from the IRS. In other words, if you don't peg the value of your business, the IRS will. What does that mean exactly? Well, if you, as the business owner, die prematurely, your business would pass to you estate. Your estate would then pay taxes based off of whatever value the IRS comes up with. Since you won't be around to be part of that conversation, your family and estate are left extremely vulnerable from a tax perspective. However, determining and documenting your business' value on your own terms will give a protective layer to guard against any inflated values that the IRS deems necessary. 

I hope you see by now that a business valuation is critical at all stages of the life cycle of your business. I mentioned earlier that a business is a business owner's most valuable asset. Well, when it comes to retirement planning, many times there is a valuation gap, and that gap could potentially inhibit you from closing the deal. Knowing whether the value of your business is trending up or down can help curb expectations, as well as, help you develop an exit strategy that gives you maximum control. A business valuation is truly empowering for a business owner. 

At this point I know what you are thinking. "Justin, aren't business valuations in the neighborhood of $8,000-$10,000?" Well, yes! A certified business valuation can be costly and time consuming. Let's face it; a business owner isn't going to spend that kind of time and money unless they are going to sell. However, because knowing the value of your business is critical to making proper decisions in your life, our firm has invested in technology that harnesses the power of big data to deliver accurate and efficient business valuations to you at no cost. Through our valuation process we can help you answer the questions that will lead you to make informed decisions for your future. So, if knowing the value of your business is something that is important to you, but you've been putting it off due to lack of time or resources, I encourage you to drop me an email, or, call me at my office to discuss how this process can be beneficial to you. 

Reasons to have a Business Valuation:
  1. To better understand your business and it's potential.
  2. When you plan to sell your business
  3. During Buy/Sell Agreements with business partners
  4. When considering funding opportunities
  5. To ensure proper protection
  6. When you plan to buy a business
  7. To prepare for taxable events, such as gifting or grants


Online Marketing Activity

One of the many ways the CBI Team markets businesses is through buyer specific websites, places business buyers go to find businesses to buy. ​Below are figures that represent ​some online ​buyer activity on some (not all) of the websites used by Confidential Business Intermediaries/CBI Team to market businesses. This information displays the amount of views or "hits" that ​CBI business listing​s​ and websites ​got as well as the total number of ​emails​ to ​which ​our monthly newsletter​s are sent​.​ It costs hundreds of dollars per month to place the confidential "blind" ads on these websites. In addition to the websites, CBI prepares and implements a customized marketing plan for each business ​we list for sale.

​CBI also prepares a monthly report for each business owner we represent. The monthly report provides detailed information about each business listing.


Business ListingsLast MonthLast 12 Months
Total Number of Views10,574116,764
Avg. Views per Listing2102,194
Total Email Inquiries49642



Company WebsitesLast MonthLast 12 Months
Total Number of Visitors1,21012,812
Total Number of Views1,87629,923



Monthly NewslettersLast Month
Total Newsletters Sent11,491

The CBI Team is a proud member of the PAABB

Company Profile

The CBI Team is the largest business brokerage network in Arkansas. Since 1994 we have helped people sell and buy businesses in the one of the fastest growing regions. With offices in Northwest Arkansas, Central Arkansas, Fort Smith, Arkansas, and Oklahoma, the CBI Team is the only business brokerage firm with offices in each of the major Ozarks cities. 

The CBI Team manages the entire business sales process, from helping the seller arrive at a reasonable, market-driven price for the business, to helping the buyer to arrange financing so that the seller gets the most compensation at closing. 

The CBI Team is the one-stop intermediary for all business sellers and buyers.

Carl Grimes, Owner
Serving the Northwest Arkansas area
Contact us at (479) 770-8989 or carl.grimes@cbiteam.com

Connor Grimes, Managing Partner
Serving the Central Arkansas area
Contact us at (501) 404-4980 or connor.grimes@cbiteam.com

Mark Kincannon, Managing Partner
Serving the River Valley Arkansas area
Contact us at (479) 784-9522 or mark.kincannon@cbiteam.com

Tulsa, Oklahoma
Contact us at (877) 582-5200 or info@cbiteam.com

"Confidentially Helping People Sell Businesses to Secure Their Financial Future"

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