PGP Advisory’s Business Beat – August 2023
Entrepreneur’s Corner: The Benefits of an Advisory Council
Experts recommend considering adding an advisory council to your business. This informal board would provide strategic advice on business management related issues. An advisory council would be in place to provide advice to your business, but unlike a board of directors, they will not actually make the key decisions. Further, while a board of directors often has equity in the business, an advisory council does not. Of course, an advisory council is not right for every business. You will typically see them in businesses that are making $3M-$25M.
The advisory council can identify and help address blind spots that will strengthen your business. They are an excellent resource as you scale and spend more time working on the business than in it.
Learn More About the Benefits of Advisory Council
Passive Investor’s Playbook
Recently, PGP Advisory had great conversation with Charlie Hardage on the Passive Investor’s Playbook. We explored the power of business + commercial real estate investments to build diversification into investors’ portfolios.
Click Here to Listen to the Podcast!
Going Global
PGP Advisory was honored to participate in a roundtable with Madam Under Secretary Lago of the U.S. Department of Commerce and distinguished San Antonio business leaders to discuss how the department and U.S. Commercial Service offices around the world can partner with the local business community to help unrepresented businesses grow through access to global markets.
The takeaway- the US Commercial Services is one of those best kept secrets that needs to be revealed. They want to help. They can open doors overseas that smaller businesses can’t on their own. Stay tuned…we ultimately want everyone to have access to “the room where it happens.”
Learn More About the U.S. Department of Commerce for International Trade
Active Business Listings
Are you searching for a business to buy? Join PGP Advisory’s exclusive network to receive regular alerts on businesses available for sale. You’ll be the first to know about new opportunities. Receive our Active Business Alerts by subscribing via the link below! Check out a snapshot of our current inventory:
High Growth Mexican Restaurant with Multiple Locations
Price: $740,000
Cash Flow: $425,000
Location: San Antonio, TX
Profitable Boutique Fitness Gym with Integrated Smart Gym Tech. Deal
Price: $500,000
Cash Flow: $80,000
Location: San Antonio, TX
Subscribe to PGP Advisory’s Active Business Alerts
Successfully Sold: Barkingham Palace
PGP Advisory served as the exclusive sell-side broker on the sale of Barkingham Palace, a 68-Kennel Pet Boarding and Training business to a Private Buyer.
Deal Highlights:
- Successfully negotiated a win-win deal structure and terms with a strategic buyer
- Sale included both business assets and associated real estate
- Excellent group of deal professionals facilitate a smooth transaction
- Industry, region, and business are positioned for future growth
“As owners seeking an informed exit strategy for our business of 18 years, it was important to us to find an experienced business advisor to navigate the complex, multi-faceted business sale process. Jason Brown had the most methodical approach for the sale of our business and the associated real estate. Jason demonstrated consistent strength in his attention to detail, consistent communications, problem solving negotiations and closing a deal with an amazing buyer that met our exit goals. We highly recommend PGP Advisory to all business professionals seeking the best in all the business services they offer.” (PGP Advisory’s Client)
Advisor Spotlight: Meet Ken
Senior Business Broker
Ken Powers brings more than twenty years of experience helping small and large companies create value through enabling sales growth and driving operational efficiencies. His corporate experience spans a wide range of industries including Healthcare, Technology, Aerospace and Defense, and Automotive. Ken brings expertise in strategy development and implementation, business transformation, and process improvement. Based out of Chicago, he is a seasoned executive who is ready to guide you and your business to the next level.
Ken earned his M.B.A from the University of Michigan, Ross School of Business with concentrations in Strategy and Finance. He earned his B.S. in Mechanical Engineering from Northwestern University.
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PGP Advisory Announces the Successful Sale of Barkingham Palace
Marble Falls, TX (June 2023) – PGP Advisory is delighted to announce the successful sale of the area’s leading Pet Boarding and Training business- Barkingham Palace- which provides exceptional care and accommodation for dogs and cats in Marble Falls and the surrounding areas. PGP Advisory served as the exclusive sell-side advisor on the transaction. Managing Partner, Jason Brown (TX LIC# 719537), served as the seller’s real estate agent on the associated sale of the kennel’s 7.5 acres of property and improvements.
The pet resort business, known for its commitment to the highest levels of pet care, has been an integral part of the local community for many years. Its exceptional reputation and loyal customer base have made it a highly sought-after investment opportunity. After an extensive search for the right buyer, we are excited to have found the perfect match.
Our experienced business brokers managed the sale process seamlessly, ensuring a smooth transition for both the previous owner and the new proprietor. The buyer, a dedicated animal lover and experienced entrepreneur in the pet services space, brings a wealth of expertise to this venture, and will continue to build on the company’s well-established dog boarding and training capabilities.
The success of this deal resulted, in part, from the strong demand for well-run businesses in the pet industry, driven by the growing number of pet owners and their desire for reliable, safe pet care services. We expect to see additional acquisition activity in our region, presenting a fantastic investment opportunity for buyers in the space.
At PGP Advisory, we take great pride in connecting buyers and sellers to achieve mutually beneficial outcomes. Our team of seasoned professionals ensures that every transaction is handled with confidentiality, diligence, and expertise. We are committed to empowering business owners to achieve their goals and helping aspiring entrepreneurs find their dream enterprises.
We would like to extend our heartfelt congratulations to both the seller and the buyer of Barkingham Palace. We are confident that the business will continue to thrive under its new management, providing pets with the exceptional care they deserve.
“As owners seeking an informed exit strategy for our business of 18 years, it was important to us to find an experienced business advisor to navigate the complex, multi-faceted business sale process. Jason Brown had the most methodical approach for the sale of our business and the associated real estate. Jason demonstrated consistent strength in his attention to detail, consistent communications, problem solving negotiations and closing a deal with an amazing buyer that met our exit goals. The process was overwhelming for us, but Jason’s calm and friendly approach with all parties involved left us more than confident we were in good hands. We highly recommend PGP Advisory to all business professionals seeking the best in all the business services they offer.” (Seller Client)
For more information on how PGP Advisory can assist you in buying or selling a business, please contact us at (210) 580-4178. We look forward to helping you achieve your business objectives.
About PGP Advisory:
PGP Advisory is a leading business brokerage firm dedicated to facilitating the buying and selling of businesses across various industries. With a team of experienced professionals and a commitment to exceptional service, we empower entrepreneurs and business owners to navigate the complexities of the market and achieve successful outcomes.
Disclaimer: This announcement is for informational purposes only. Any information regarding the sale of the pet boarding business is subject to the terms and conditions agreed upon by the parties involved.
Guide To Selling Your Business & Building Your Transition Team
“I’m not ready to sell now. I’ve got several years left.” A key follow-up question to ask yourself is: “Is now the right time to sell?” As the Fed continues to raise rates to combat inflation and the risk of recession looms on the horizon, how will your business fair in this environment? We encourage you to consider these external factors when weighing whether or not this is the right time to sell.
Hopefully you’ve read PGP Advisory’s article, “What to Expect When You’re Ready To Sell,” which highlights the preparation timeline and how to set realistic goals for the process.
The team at PGP Advisory has formed a step-by-step guide to ensure businesses are sold at the right time, for the right price, and to the right buyer.
Step 1: Be Informed
Do your research and educate yourself on the selling process. Consult with an M&A advisor.
An M&A advisor will help you establish a strategy tailored to your business and manage the complexities of the sale process so that you can stay focused on running your business. They’ll identify and qualify buyers, secure an offer(s), and negotiate the eventual sale with the best possible terms.
If you’re invested in selling your business for the best possible value, choose a leading M&A advisory firm to broker the deal.
Step 2: Get Your Finances in Order
Purchase price is important, but so are the terms on the deal. Accurate financials can make the difference between getting 80-90% of the purchase price at close (via bank financing) and you becoming the bank (in the form of seller financing) for a significant portion of the purchase price over several years.
Do your due diligence by organizing your bookkeeping and financials and getting ahead of items that could prevent bank financing or slow down the sale (such as sign-off from other shareholders or active lawsuits or legal proceedings).
Consider your business’ employee contracts, intellectual property issues, and federal and state tax requirements. To ensure you have time to fix all potential red flags, hire a third-party accounting firm to assess your financial statements and advise on an exit-friendly tax strategy a year or two before the sale.
Step 3: Get a Business Valuation
Turn to experts (e.g., business brokers, M&A advisors) to understand how much your company is worth and to whom. Value is more than a number on a paper. The value that matters is what a buyer is willing to pay for your business. A trusted advisor will help establish a range that you would expect a reasonable buyer to offer for the business.
Step 4: Build Your Transition Team
“Great things in business are never done by one person, they’re done by a team of people.” – Steve Jobs. Putting together a team early can prevent a lot of stumbling down the road. Here is our list of professionals that business owners should have on their team (before your business goes to market) to smoothly and successfully sell their business:
1) M&A Advisor – Expert on sale strategy and process
2) CPA – Expert on your financials and tax strategies
3) Lawyer – Expert on identifying and managing legal risks with both the business and sale
4) Financial Advisor – Expert on planning for post-sale impact on your overall financial objectives
Summary
As experienced M&A Advisors, we are at the center of your business sale transition team. If the issues are not unaddressed, you will spend valuable time and resources prior to and after the sale trying to “fix” things. Your business is likely your most valuable asset, and building a successful company can take years of time and effort. If you’re considering selling your business at some point, schedule some time to discuss how we can help you make an informed decision – and maximize the price you receive for the sale.
Celebrate 2021 & Look Ahead to 2022 With PGP Advisory
Taking Your Business to the Next Level
We unlock value for owners by helping you prepare for and successfully sell your business. We guide entrepreneurs through the exit process from evaluating options through closing the transaction. PGP Advisory also advises individuals and businesses seeking to grow through acquisition. We are an M&A Advisory firm and Business Broker in San Antonio who works with clients of various sizes across a wide range of industries and geographies. We are excited to support your 2022 exit or acquisition goals!
Looking Back on 2021
Thank you for your contribution toward our success last year. Here’s a summary of what we accomplished:
Crushed Goals in 2021
- Software Consulting Firm Acquisition (Sell-Side Advisor)
- FedEx Trucking Acquisition (Buy-side Advisor)
- Kickboxing Gym Acquisition (Sell-side Broker)
- Flower Store Acquisition (Sell-side Broker)
Total Closed Deal Value: $2.3M
Increased Our Scope
- Executed a strategic partnership with Transworld Business Advisors of Atlanta Peachtree to provide brokerage services in the Georgia market.
- In negotiations with a strategic partner to support M&A Advisory work in Charlotte, NC.
- Working with a partner who assesses business cost-out opportunities. Click here to learn more.
We Remain Committed to:
- Supporting clients through successful merger and acquisition transactions.
- Educating and preparing business owners for successful exits.
- Connecting owners with the resources to increase cash flow and the value of their businesses.
Hyper-Focused on Challenges Ahead
PGP Advisory is here to help you navigate the M&A landscape in the face of obstacles, such as:
- Talent retention in a tight labor market.
- Product availability during supply chain disruptions.
- Input costs and margins in an inflationary environment.
- Debt levels, capital investments, and available deal capital amidst rising interest rates.
Your Business Journey
Regardless of where you are in your business journey (growth, maturity, exit), it’s important to focus on increasing the value of your business (i.e. growing operational cash flow). It is the lifeblood for growth, the discretionary income to support personal expenses, retirement, etc., and the driver of your business’ exit value.
Can you identify where your business lands in the life cycle chart?
More in Store for 2022
Be on the lookout for more content from us. PGP Advisory will continue to keep you informed on trends, information and challenges that impact your business. Let our team of trusted advisors help you crush your business goals this year and beyond.
Interested in learning more about the sale process? Download a free white paper here.
Schedule a consultation for your business valuation here.
Read MorePGP Advisory’s Software Implementation Client- Westward Consulting- Completes Sale
PGP Advisory, a leading mergers and acquisition advisory practice and San Antonio business broker, is pleased to announce that it served as the exclusive M&A advisor to Westward Consulting LLC, a strategic Ultimate Kronos Group workforce software implementation partner, in its sale to Mosaic Consulting Group on July 1. With this acquisition, Mosaic Consulting Group, a long-time Ultimate Software partner focused on human capital management (HCM) support and service, is adding Westward Consulting’s Kronos experience and focus on workforce management, to their services.
“We worked with John West, Founder and CEO of Westward, over the past few years to prepare his company for this significant milestone. The cultural fit of the combined organization paired with enhanced solutions offerings into the marketplace position Mosaic to create and deliver increased value to its clients, employees, and partners.” Jason Brown, Managing Partner, PGP Advisory
John West, Westward CEO adds, “This is an exciting time. Two best-in-class teams are coming together to offer a full suite of services to our clients. Now, we will be able to help our clients seamlessly optimize and hone their team related strategy, processes and technologies”
Westward Consulting was founded in 2015 as a workforce consulting company with a mission that guides organizations to exceptional workforce performance. The Westward team exemplifies their team’s values: Family, Ethical, Fun and Generous. They deliver an exceptional client experience by focusing on thinking outside the box. Finding innovative solutions for their clients is at their core.
About PGP Advisory
PGP Advisory is a M&A advisory firm that helps our clients create value in the transaction process by offering Fortune 500 experience, tools, and strategies to small and midsized businesses. We seek out, identify, and solve problems for our clients throughout the entire transaction process. We leverage both our deal and operational expertise and experience to support our clients’ desired deal outcomes.
