In the twenty-four business sales that The Montana Group (www.montanagroup.com) consulted each were unique in their own way, but most share common components. The ultimate buyers share many of the same acquisition interests so it’s fairly predictable when we list a business that it will be sold but when and to whom is the unknown.
These businesses were in the manufacturing, distribution, and service sectors and were located throughout the US with a concentration in the southern part of the country. They also fall within the size range, of $2 million minimum in pretax profits. These businesses all have good growth trends that exhibit an increase in sales accompanied by a commensurate increase in pretax profits. There is also an opportunity to increase the business revenue in the future either from internal growth from an increase in market share, an expansion in geographic territory, or through a strategic acquisition. The existing management, either the prior owner or newly elevated existing management, is involved with the business after the sale and at times receives ownership for their future successes. These businesses have a niche that makes them desirable. These niches were a desirable geographic territory, a product with little competition, a large market share of a small market, a specialized service that is difficult to duplicate, or simply a nimble company filling a need with a quality product.
The owners were in a position in life that selling their business allowed them to retire at the sale or gradually retire over a few years and the sale allowed them to make liquid their largest and most significant asset. By working with The Montana Group these companies were paired with the appropriate buyer who met the owners’ various objectives. Our clients appreciate the risk that we take when we are willing to work on the sale of their business and only get paid when the business is sold. This tells them that we are confident in an outcome that meets their objectives.