Case Study: I was Prepared to Sell – Smooth as Silk
By Martin Hansen, CEO – Mavrek
Date: September 2023
Introduction
This case study highlights the story of Caleb, the sole proprietor of a small architectural design firm with two full-time employees. Additionally, this case study also introduces the Mavrek software, a platform that assists small business owners and their trusted advisors (accountants, business attorneys, business advisors/brokers, exit planners, and financial planners) with the process of selling, buying, or transferring a small business.
The Situation
In February 2022, Caleb decided he wanted to retire. His goal was to sell his customer list, office equipment / furniture, and to find a buyer who would keep on his two long-term assistant’s. Caleb read several articles on how to best sell a small business and started to get all of his files, documents, and old records in order. Nevertheless, Caleb knew he needed to meet with his attorney and CPA on the process of selling his business before contacting potential buyers.
The Attorney / CPA’s Advice
First, he met with his attorney to discuss the legal process of transferring his business and what he should expect from any possible buyer(s). His attorney told him that he would get all of Caleb’s legal documents updated and in good order for a potential sale. Shortly after that meeting, Caleb met with his CPA. The CPA immediately suggested Caleb open a Mavrek account and to add her as a “team member” – “it’s free Caleb!”. He opened his Mavrek account and added both his CPA and attorney as team members.
The Situation – Continued
With the assistance of his CPA, Caleb followed the simple directions within the Mavrek software and prepared his business for sale. As he moved through the Mavrek process, he found multiple buyers by reaching out to them directly, knowing that “Listing his Business for Sale” would not produce the results he wanted. He added them to Mavrek as buyers and had them execute a confidentially agreement – all generated within the software. After the buyers review of the business on Mavrek, one buyer made an offer using the Mavrek transactional templates, and after a little negotiating – Caleb signed a term sheet with one of the buyers. With the assistance of his CPA and attorney – they worked through Mavrek’s remaining steps and closed the deal 63 days later.
Lessons Learned
Everyday small business owners use Mavrek to sell their businesses, however you don’t have to go it alone – you can always involve your business-related trusted advisors if you need assistance. Lastly, whether the timing was right for Caleb to sell or not, every business should always be ready to sell. By using Mavrek, Caleb had at his fingertips a valuation tool, a marketplace to list his business for sale, a secure data room to store his confidential documents, and all the transactional template documents needed to complete a deal; and most important a proven six- step process, all for free.
The Outcome
Caleb was able to leverage his customer list as a real value to the buyer and receive a fair price for his office equipment / furniture. The buyer hired one of the two employees and with a recommendation from Caleb, the other employee secured a full-time job with another Architect. Caleb stayed aboard for six months to help with the transition, and now is happily retired after 33 years of owning his own business. His comment when asked about the process , he stated “smooth as silk”.
A Solution: Mavrek
Mavrek’s goal is to assist the small business owner and their trusted advisors by offering a platform that facilitates the process of selling, buying, or transferring small businesses. Mavrek provides the necessary tools and resources to ensure that business owners are well-prepared and confident in their desire to close a deal.
Join the millions of small business owners and entrepreneurs who will be selling, buying, or transferring businesses in the next 12 months. Visit www.mavrek.com to access the platform, which is always free.
Conclusion
The case study of Caleb highlights the critical importance of being prepared to sell to maximize the businesses value. It also serves as a reminder that being ready and maintaining a comprehensive database of important documents within the Mavrek software can make the difference in order to capitalize on opportunities. With the assistance of Mavrek, small business owners, entrepreneurs to be and trusted advisors can navigate the process of selling, buying, or transferring businesses with ease.
