September
2017

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

Big Box stores are offering online ordering and pick up. Still got some wrinkles to work out. Had a customer service "no-no" at one of them recently. There was a minor foul up on the order and it was quickly taken care of to my satisfaction but when the CSR (Customer Service Representative) told me about the problem she addressed it as "Us and them" as if "them" was someone outside the company she works for too. Us versus them is not the attitude we want in our businesses. It's us all the way!

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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 company with special interests in the dental industy. 

This company is always looking to acquire new practices in good markets. This group will purchase practices of any size, and in any location but primarily operates in Southern Arkansas. If you own a dental practice and are considering selling, give us a call today at 877-582-5200 or email confidential@cbiteam.com 

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Ask the Expert!
 

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.
(From left to right: Rick Millican, Seller and Larry Bone, Buyer)

Rick and Jennifer Millican sold Trotter Electric because they were ready to focus on mission work. Rick had been with Trotter since the 1980s and was ready to pass the torch to someone else. The Millicans decided to engage Mark Kincannon and the CBI Team-Fort Smith River Valley after considering selling to employees. 

Mark Kincannon listed the business and had a buyer interested within the first month. An agreement was made and the new buyers were father-son team Larry and Chad Bone. Larry and Chad had a goal of working together to create a family legacy. 

The Bones utilized the CBI
 Team's Loan's For Business Program (L4B) to obtain a loan through Regions Bank with the help of Itzel Meadors and Jake Sibley. Larry also utilized the BORSA program, introduced to him by the CBI Team, to obtain funds for his down payment. 

Seller Rick Millican is happy to have sold the business in order to move on to other endeavors.

Larry Bone is an equally satisfied buyer stating, "After considering other business options, I chose to contact CBI. Working through the purchase of  a business can be a challenge and end up causing many unforeseen situations. CBI removed the guesswork, helped find financing, and gave me added confidence in buying the company. I highly recommend CBI's system."

CBI Team-Fort Smith River Valley is happy to assist both the seller and buyer in accomplishing their goals. 

For more information about selling or buying a business, contact Mark Kincannon at 479-806-0061 or mark.kincannon@cbiteam.com
Graffiti's (www.littlerockgraffitis.net), Central Arkansas Italian-Mediterranean destination restaurant for thirty-two years, was recently sold to Avila, LLC whose members are  Armando Yoblanos, Ana Mercedes Lara, Carlos Eduardo Valdivieso, Sarah Ann Bolanos, and Yeimer Yolando, according to CBI Central Arkansas Managing Partner Connor Grimes.

CBI, the largest business sales firm in Arkansas with three locations and one in Tulsa, Oklahoma, represented the seller in the transaction. According to Grimes, the business engagement to sell was signed in April and the transfer took place less than five months later.

TEST-Multiple Choice: Exiting My Business-What are my choices?

(This is the third of a five part series written by CBI Chairman Carl E. Grimes on the ways a business owner can exit their business). 

Will Junior of your employees pay you for and continue to operate the business you've built? Big question to be answered as you plan the exit strategy for your business. in over 30 years working with business owners, we've seen successes and failures when business owners try to plan their retirement income by selling their business to a family member or employees. Seems like the dream of many business owners is to pass the business along to a son or daughter. However, stuff happens doesn't it? Here are some things to watch out for if you plan on selling to a family member or your employees:
  • Junior (or Juniorette) doesn't want the business. They have watched you work and put in long, hard hours to build a business and they simply don't want to work that hard or take that responsibility. They'd rather do something else than work in the family business. 
  • They don't want to pay you what the business is worth. Sometimes they want a "family discount" which means you may have to leave money on the table to encourage them to buy it. They may, rightly or wrongly, think they are entitled to the discount because they helped build the business.
  • They ask you to finance the purchase of the business with no money down, no risk on their part. We've seen many times when the business owner/founder is the last to be paid by the family member who "bought" the business. 
  • They may make changes in the business you consider risky and unwise resulting in tough family dinner/reunion discussions if you are financing the business for them. You want to protect your investment and they want full control to do what they want to with the business. Hard to deal with.
  • If you are financing a family member there is a possibility that legally you could be held liable for the actions of the business. Check with you attorney and/or CPA.
  • Your spouse may be left to deal with the family issues upon your death or disability, putting her/him in a very difficult situation they may not be prepared to handle. 
  • If selling to your employees, do they have enough cash money to make a reasonable (20-30% of the value of the business) to encourage you or a bank to finance them? Most don't.
  • If an employee thinks they are an integral part of the business and have contributed to building value, they may want an "employee discount" on the price.
  • There is a risk that will try to hold you hostage by threatening to leave if you don't give in to their demands.
  • Morale can go down very quickly if their peers who aren't buying have any qualms about the sale. 

There are advantages to selling to a family member and/or employees:
  • Less training by you. They're in the business and know the business. 
  • They may have fresh ideas to grow the business based on their experience.
  • Third party lenders may look favorably on them because they have experience in the business. 
  • Customers and vendors will be more comfortable in continuing to do business with the firm that has a smooth hand off. 
  • There can be tax advantages if the business if large enough to do an ESOP (Employee Stock Ownership Plan). Usually $5 million in top line revenue is a benchmark to be achieved.

There are other pros and cons to exiting your business by selling to family members or employees. However, be cautious. You have built something and letting your emotions get in the way of common sense is much more likely when selling to family.Good, third party, outside counseling can help keep the sale/purchase business like and not turn into a disaster for all parties.

Give us a call at 877-582-5200 or email confidential@cbiteam.com to schedule a no-obligation consultation as you plan to exit your business.
Business can be fun. 

Many will remember the running joke in the Pulitzer Prize winning novel "Lonesome Dove between Gus McCrae and Woodrow Call on the cattle drive from Texas to Montana that resulted in a sign that stated, "We don't rent pigs.".
 
Well, we recently found out they do rent pigs in Texas, cement pigs, as seen in the photo above from http://cementpigrentals.com
 
Do you have a
humorous, or interesting business picture or website you care to share with the rest of our business readers?

Send it along to us at info@cbiteam.com and we'd like to feature it in our e-newsletters.

But, we don't rent pigs!


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 Views10,926120,183
Avg. Views per Listing2212,220
Total Email Inquiries39632



cbiteam.comLast MonthLast 12 Months
Total Number of Visitors1,22812,672
Total Number of Views1,98130,055



Monthly NewslettersLast Month
Total Newsletters Sent12,213

Company Profile

The CBI Team is the largest business brokerage network in Arkansas and Oklahoma. Since 1994 we have helped people sell and buy businesses in one of the nation's fastest growing regions. Offices in Northwest Arkansas, Central Arkansas, Fort Smith, Arkansas, and Tulsa, Oklahoma, make 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 Fort Smith/River Valley Arkansas area
Contact us at (479) 784-9522 or mark.kincannon@cbiteam.com

Roy Still, Managing Partner
Serving the Tulsa, Oklahoma area
Contact us at (918) 940-6437 or roy.still@cbiteam.com