The BizBuySell Small Business Community

  • Get Expert Advice

  •  • Find Local Service Professionals

  •  • Share Your Experiences

Can you sell a 38 yr business that is failing?

Is there a chance to sell a company that is in the process of going under? Its been slowly sinking. It has potential but really needs some help. There is an existing customer base many that are long standing, backlog, personnel, a daily operational structure in place . The company was a wholesale distributor then transitioned to manufacturing. It need someone to come in and kick start sales again, it needs working cash, proper advertising and a fresh approach to marketing. Help? Thoughts?

No User Photo

Answer This Question

max 5000 characters

Web Reference (optional)

e.g., "www.mywebsite.com"

Review Community Guidelines

Help keep our Community clean and on topic. The BizBuySell Community is a place where you can discuss your questions, concerns and knowledge with others you can trust. It is not OK to use this forum to solicit others for personal or financial gain, or to rant about personal issues. It's all in the guidelines.

Submit Your Answer
Answers (4)
Terri Fletcher

Yes, I would recommend contacting a Transworld business broker in your area.

Transworld Business Advisors is the world leader in the marketing and sales of businesses and franchises for over 35 years. Transworld offers the professional services that successfully bring buyers and sellers together. From business brokerage to mergers and acquisitions; we are the business sale specialists.

Apr 8, 2016
Douglas Cordell
Cordell Realty Group Inc
Charlotte County, FL

Pamela, I would be happy to sign a non-disclosure agreement with you and your company. Then we can talk freely about the status of the company to date. Once I understand your Gross Sales, Cash Flow, Accounts Receivable and Payable, I would have a better idea of who I might take this too. We have clients in electrical manufacturing and distribution that may see it in a different light than you are walking through. Let me know if we can help.

Apr 3, 2016
No User Photo
United Financial LLC
Experts in Small Business Valuations
Alameda County, CA

Certainly the things you mention, such as customer base, employees, infrastructure and longevity would appear to have “goodwill” value over and above whatever hard assets are in place. The bigger question is what caused the downturn and is that “fixable”? The party or parties that would be interested in this need to feel that they have the solution that creates an opportunity … something they can capitalize on to increase value. Those investors have to understand and believe the story to see a path towards success. One way to do that is for ownership to require less equity/cash up front, leaving more working capital on the table for the buyer/investor. Also, substantial owner financing helps get a higher price, especially since no bank or third-party lender would likely put money into a losing situation. However, in some cases acquisition financing might be available via an Asset-based lender if there is a lot of heavy, capital intensive equipment in the company (worth $500k+ in Market Value vs. depreciated Book Value). Finally, in addition to owner financing, the deal could be structured with some sort of Earnout or other payment contingent on reaching certain targets after the sale. Again, that helps put more money into to seller’s pocket if things materialize as planned.

Apr 1, 2016
No User Photo
The BAF Group LLC
MD

There are some specialty Buyers that focus on "turnaround" acquisitions. But they are sometimes very difficult to connect with. Call me: Don Barrick, at 410-715-0700, or email me at combroker@bafgroup.com

Apr 1, 2016

Start a Discussion