How Rogerson Business Services Sold A Moving & Storage Business In Six Months
Moving and Storage Business For Sale
A dynamic moving and storage company, located in the Bay Area, offered a one-of-a-kind service to San Francisco businesses seeking cost-effective storage solutions for various equipment and fixtures.
Their adaptable approach seamlessly married the best aspects of traditional and modern facility support services, catering to the specific needs of local enterprises aiming to optimize their operations.
Fueled by a genuine passion for moving and storage management and a keen awareness of the burgeoning demand for flexible solutions within the Bay Area's business community, the owner seized the opportunity to establish this venture.
By swiftly setting herself apart from competitors, she achieved immediate success – her "secret sauce" that propelled growth until September 2023, when the business underwent a change in ownership.
The owner of the moving and storage company, based in San Francisco's Bay Area, said: "Only that I can't say enough about the professionalism, expertise, patience, guidance and ease
Andrew Rogerson brings to the whole process!"
Navigating the Complexities of Business Sales
Selling a company necessitates keen discernment in identifying motivated buyers, especially for logistics and moving companies that offer storage and facilities services, which come with their own complexities. Successfully navigating the sale requires extra diligence.
Given the high demand for such a business, the task was to determine which of the 100-plus interested buyers deserved further consideration. Although it was challenging to narrow them down, it was crucial to select only a few buyers in order to provide them with our utmost attention and care.
During Andrew's interview with the owner, he asked if she was surprised by the demand for her business from buyers. The owner responded, "Not really, as we priced it modestly, so we anticipated the level of interest it received."
There are almost always differences between the seller and the buyer when it comes to various matters. While the seller possesses extensive knowledge of the business and has achieved success, the buyer sees potential and seeks the seller's input. This situation presents a significant challenge.
The key is to establish harmony between the seller and buyer, ensuring that everyone's needs are met; otherwise, the transaction will fail. In the case of this business sale, the seller emphasized the importance of extensive paperwork and preparations for a smooth and speedy transaction with the best price and valuation.
The seller further expressed gratitude for the assistance of Andrew Rogerson, who played a crucial role in turning this deal from a potential failure to a successful transaction. The overall experience was highly satisfactory, thanks to his guidance.
After an initial attempt to sell the business in 2021/22 that nearly fell through, this deal persevered against adversity and ultimately closed successfully on the second attempt. This achievement serves as a testament to sheer determination.
Acquirer
The sale of this Bay Area moving and storage company was successfully concluded by a buyer who went through a self-selection process.
The self-selection process attracted a significant number of buyer inquiries, exceeding 100 as mentioned earlier.
The majority of interested buyers came from a logistics background.
The inclusion of a storage facility introduced a new aspect for buyers focused on transportation.
In many ways, this business model aligns well with transportation companies.
The seller's business model offered a managed moving and storage facility tailored to enterprises with specific flexible needs, allowing them to relocate quickly and minimize costs. This model enables customers to easily manage and operate their businesses.
The ideal buyer, therefore, possessed a logistics background.
Having previously owned and operated a logistics company, it made perfect sense for him to purchase a business that he was familiar with and could make more profitable.
Seller
After much deliberation and numerous discussions with Andrew Rogerson regarding retirement and the sale of her moving and storage business, the owner/seller finally made the bold decision to seek Andrew's assistance in selling her business. This pivotal moment occurred in June 2022.
Filled with hope and optimism, the seller believed she was making the right choice. However, her enthusiasm waned when the initial attempt to seal the deal fell through due to a customer diversification issue.
To enhance the likelihood of a successful sale, the owner and Andrew Rogerson engaged in ongoing conversations throughout 2022 and 2023. Their aim was to identify any potential weaknesses that could hinder the owner's pool of buyer prospects.
During these discussions, they discovered that the owner relied heavily on a single client, whose revenues accounted for more than 15% of the total income. This fact proved off-putting to potential buyers, as the client in question happened to be Twitter, which had been acquired by Elon Musk in 2022 and subsequently rebranded as X.
Andrew Rogerson implemented a growth plan in collaboration with the seller, resulting in significant improvements in the business's performance. This exemplified the immense potential for the business to thrive and remain profitable under new ownership.
Employing his expertise in off-market techniques, Andrew skillfully marketed the business, garnering an impressive level of interest from nearly 100 potential buyers within six months. By respecting the seller's need for confidentiality, Andrew's discreet approach yielded remarkable results, validating the effectiveness of his astute marketing strategy.
The seller emphasized the importance of confidentiality, stating,
"Maintaining confidentiality was a top priority, and I sought a discreet transaction."
Furthermore, the seller expressed gratitude for Andrew's assistance, acknowledging that without his expertise in negotiation and efficiency, the process could have been arduous and challenging.
THE SELL-SIDE PROCESS
SELL-SIDE MERGERS And ACQUISITIONS PROCESS
At Rogerson Business Services, we take a thorough approach to selling a business and ensuring potential buyers have a clear understanding of the business they're interested in. Before bringing a business to the market, we invest our time in making sure everything is as transparent as possible for potential buyers.
The Selling a business process requires the buyer to sign an Agency Disclosure per the California Department of Real Estate, as well as a Non-Disclosure Agreement (NDA). The NDA also requires the buyer to provide a Personal Financial Statement, which helps us understand their financial ability to purchase the business or qualify for finance, such as an SBA loan.
Once the buyer completes these documents, they can download a One Page Executive Summary and a Confidential Executive Summary from a secure website. The Confidential Executive Summary can range from 15 to 40 pages, depending on the complexity of the business for sale. It includes many important details such as the purchase price, the history of the business, the reason for sale, an overview of the customers the business services, the marketing strategies used by the seller, a summary of the employees, and any other important information, whether the business is also selling the real estate or if there is a lease in place, and the terms and conditions of the lease, among other things.
A Seller's Disclosure Statement.
This is a 4-page document the business seller compleHere's the rewritten version:
At Rogerson Business Services, we believe that transparency is key when it comes to selling a business. That's why we invest our time in providing potential buyers with a clear understanding of the business they're interested in before it even hits the market.
To achieve this, we require buyers to sign an Agency Disclosure and a Non-Disclosure Agreement (NDA), along with providing a Personal Financial Statement. This information helps us determine their financial ability to purchase the business or qualify for financing.
Once the documents are completed, buyers can download a One Page Executive Summary and a Confidential Executive Summary from our secure website. The Confidential Executive Summary contains detailed information about the business, such as its purchase price, history, reason for sale, marketing strategies, employees, and more.
We also provide a Seller's Disclosure Statement, which includes information about licenses, financial stability, employees, and more. In addition, we offer sample documents, a list of Fixtures, Furniture, and Equipment, and any other material specific to the business for sale.
If the business has been prequalified by an SBA lender, we provide buyers with this information so they know what's required to get an SBA loan.
Our goal is to make sure buyers have all the information they need to make an informed decision. We know that only 4% of buyers actually acquire a business and that only 25% of businesses on the market ever sell. However, we believe that our attention to detail and transparency increase the chances of connecting a motivated seller with a motivated buyer and getting a deal done.
It’s understood that only about 4% of buyers actually acquire a business and that only about 25% of businesses on the market ever sell.
The above attention to detail is to increase the odds of connecting a motivated seller with a motivated buyer and getting a deal done.
SBA LOAN
Arranging an SBA loan for the buyer proved to be the most challenging part of the transaction.
The process was complicated due to the business being run by a single person, and the lender requiring assurance that the buyer had similar skills to the seller.
This is an important qualification factor for a smooth transition in the deal-closing process.
NEGOTIATIONS
During the due diligence process for the moving and storage business, the buyer found that the operations were not overly complex and the financial statements were well-organized.
The seller had contracted a third-party service provider for this purpose. Therefore, the buyer was able to communicate her inquiries efficiently and receive clear answers promptly.
FINAL DEFINITIVE AGREEMENT
During their transaction, the buyer and seller relied on an Asset Purchase Agreement that was offered by Rogerson Business Services.
The agreement was a crucial document that provided a detailed outline of the assets being sold, the purchase price, and the terms of the sale.
In addition to the agreement, other supporting documents were also used to ensure a smooth and comprehensive transaction between both parties.
ESCROW PROCESS
One of the best parts of this transaction was the escrow service offered by Glen Oaks Escrow in southern California.
Glen Oaks Escrow is a large southern California escrow provider. Their team of Cynthia Moller, Justine Kerrick, and Lynn Marquez was superb at working with the buyer, seller, SBA lender, and Rogerson Business Services.
As is normal in a transaction, there were difficult moments but the team at Glen Oaks Escrow was able to take things in their stride and successfully achieve getting the escrow closed.
Moving And Storage Company Smoothly Sold In Six Months
Andrew Rogerson and his M&A deal team are the perfect partners for anyone looking to sell their business. Their latest success story is a testament to their unwavering commitment to client satisfaction and their ability to navigate the inevitable obstacles that arise during the sales process.
Despite facing numerous challenges, Andrew Rogerson and his team successfully closed the sale of a moving and storage company in just over a year. Their approach is simple yet effective: patience and diligence. They understand that waiting for the right deal can often yield greater rewards than rushing into an unfavorable agreement.
When it comes to selling a business, there's no room for error. But with Andrew Rogerson and his team by your side, you can rest assured that you're in good hands. They bring a level of professionalism, expertise, and guidance to the process that is unparalleled in the industry.
Don't take our word for it - the client couldn't be happier with the results. "I can't say enough about the professionalism, expertise, patience, guidance, and ease Andrew Rogerson brings to the whole process!" If you're ready to sell your business and achieve success, look no further than Andrew Rogerson and his team at Rogerson Business Services.
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