Case Study: Preparation meets Opportunity
By Martin Hansen, CEO – Mavrek
Date: February 2023
You have likely heard a business owner state, “If offered the right price, I would walk away today,” however not all businesses have taken the preparatory measures to capitalize on that opportunity. Jill encountered this exact situation when a large corporate competitors’ senior business development officer contacted her ask if she had interest in selling her party rental business. With no real understanding of what to do next, she immediately contacted her business advisor hoping her knowledge and expertise would point her in the right direction.
She immediately suggested they get on the Mavrek software. Her business advisor admitted she was not real experienced with business transactions but had heard Mavrek was the great equalizer. They onboarded together. She immediately suggested that Jill contact the business development officer, Todd, to inquire about the buyers due diligence list which is the information the buyer would need to make an offer. To her surprise, Todd sent his company’s list which contained two pages single-spaced information request of information the buyer needed to review immediately. Though slightly overwhelmed, Jill forwarded the list to her business advisor and together they began consolidating the necessary documents. They invited Todd to Mavrek as the buyer and he quickly onboarded. For the next two weeks, Jill and her business advisor continued to build out the Mavrek data room. Once they had satisfied Todd’s information requests – they notified Todd and waited for his response.
Now two months into this process, Todd called Jill to inform her that his company had made an offer on another business in her area and the seller accepted. To make matters worse, Todd had made initial contact with the “other” company only a week after his first phone call to Jill, leaving her feeling upset and slightly depressed about the missed opportunity. Jill came to the realization that most of Todd’s list should have been readily available and that her business advisor had mentioned over the years that consolidating these items in place would help her run the business more effectively and become more profitable.
From that day forward, Jill and her business advisor met every quarter and maintained a database of all her important documents including items such as tax returns, quarterly and normalized financial statements, and matters pertaining to her ownership agreement always following the Mavrek prompts.
Epilogue:
A year and a half passed, and Jill was contacted again by another business development officer from the same company, this time she was ready with the Mavrek software. Armed with all the important information in the Mavrek data room and with the help of her business advisor, she accepted an offer and closed the deal within four months from the new contact.
Being ready is critical – Small business owners and their advisors and entrepreneurs deserve a chance to feel confident about selling, buying, or transferring a small business and now every exit planner, CPA, real estate professional, business attorney or wealth manager can assist their clients better with Mavrek.
Join the millions that will sell, buy, or transfer a small business in the next 12 months – be ready with www.marvek.com!
