CASE STUDIES

Real clients. Real challenges. Real results.

LEARN ABOUT SOME OF OUR CLIENTS’ CHALLENGES AND HOW WE ADDED VALUE IN THE PROCESS

EXIT PLANNING TO INCREASE  BUSINESS VALUE AND SELL IT

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PREPARING TO SELL BUSINESS TO ENJOY DREAM RETIREMENT

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POSITIONING STRATEGY OF BUSINESS AND HANDLING MULTIPLE OFFERS

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PROPERTY TURNAROUND MANAGEMENT AND SALE

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COMPLICATED PROPERTY PURCHASE WORKING IN CLIENT'S FAVOR

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PRIVATE LOAN SOLUTION TO ALLOW BUSINESS EXPANSION

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CASE STUDY: EXIT PLANNING TO INCREASE BUSINESS VALUE AND SELL IT

THE SCENARIO

SBS Administrative Services  is a third party administration business established in 1995 that administrates Section 125 Cafeteria plans and COBRA to major employers and smaller businesses throughout Texas and in several other states. The owners had successfully grown the business over the years, but had reached a point where they felt it needed someone with new ideas and capital to take it to the next level. They contacted Alamo Brokers of Texas to discuss how to prepare their business to be sold in the next couple of years and achieve their financial goals to move on.

THE SOLUTION

Alamo Brokers of Texas provided a limited valuation of the business and took on the role as the advisor to SBS Administrative Services in preparation for the sale. Together with the owners, we established goals and key metrics to help achieve these goals. We then discussed specific actions and followed up with the owners periodically to evaluate the progress over the following 12-15 months. The owners made steady progress and when the time was right we decided to market the business for sale. A professional Confidential Business Review (CBR) was produced and we started looking for the right buyer, while the owners kept working on the business enhancement plan. After just a few months we had found several potential buyers and ended up receiving multiple offers. The best candidate proved to be a local investor team with prior experience in the health insurance business. We negotiated all facets of the deal and worked closely with the buyer to obtain financing and guidance. The seller was cashed out at closing, and the new owner has been successful at continuing to grow the business.

CLIENT TESTIMONIAL

“Stefan worked with us around our schedules, was extremely easy to get along with and made what could have been a very stressful event a very smooth experience. He is experienced, reliable and has integrity. We closed on the sale of our company within a few months of listing it. We have since used Stefan to advise us and help us review paperwork in the purchase of a new company. We highly recommend Stefan to anyone thinking of selling or buying a business”.
­­— Mike & Lisa Wilson, Sellers of SBS Administrative Services.
“Stefan’s presentation of the business was very professional and comprehensive, and he made it ease for us to get through the due diligence process. We felt very comfortable with the entire process”.
­— Javier Elizalde, Buyer of SBS Administrative Services.

CASE STUDY: PREPARING TO SELL BUSINESS TO ENJOY DREAM RETIREMENT

THE SCENARIO

In 1996 a husband and wife team decided to move to San Antonio from Louisiana to open up a distribution company, selling industrial supplies including gaskets, hoses, belts and other related products. The business was an instant success and over the years grew to become a multi-million dollar distributor with outside sales reps covering San Antonio, Austin and Eagle Ford shale area in the south. After owning the business for over 15 years, however, the owners had reached a point in their life where they wanted to move to Colorado and build their dream home to retire.

THE SOLUTION

Alamo Brokers of Texas was hired to sell the business, however it quickly became clear that some work needed to be done before the business could be sold. The business was doing very well, but most of the processes were poorly documented, which would make it difficult for a buyer to take it over. The bookkeeping system also had some issues, which needed to be taken care of as well. We discussed the benefits of having well documented processes in place, and that this would make the business easier to sell, and at a higher value. A plan was developed to address the issues, and a team of internal and external resources was formed to tackle these tasks. After several years of efforts to document the various business processes, the business was marketed to a wide array of potential buyers. In the process, the revenue and the bottom line improved by about 20% which directly affected the value of the bsuienss. Several qualified buyers were identified, and the owners decided to work with a buyer with extensive experience and capital that could take the business to the next level. Alamo Brokers helped negotiate the final terms of the deal, and assisted both parties during the due diligence process to have a successful closing. The transition phase had been carefully planned, and the buyer was able to get a running start to integrate new processes without any disruptions to the employees or customers.

CLIENT TESTIMONIAL

"We're free to pursue our retirement dreams, but without Stefan's expertise, professionalism and patience over the past years, we would still be searching for a buyer for our business. Stefan knew exactly how to unscramble what we had on our hands in order to produce reliable reports. Shortly thereafter, there was a steady stream of serious prospective buyers and we were able to get every bit of what we felt our business was worth in the sale. He was right by our side during all the negotiations right up through the closing. Stefan has been a blessing to us and we highly recommend him to others seeking help to sell their businesses."
­­— Mike & Renee Halay, Sellers.

CASE STUDY: POSITIONING STRATEGY OF BUSINESS AND HANDLING MULTIPLE OFFERS

THE SCENARIO

Eco Box is a distributor of packing and shipping supplies located in San Antonio,Texas. The company controls several locations in the San Antonio Metro area, and holds a patented design for shipping flat screen TVs and similar objects. In addition, the company is a franchise and holds the franchising rights for the rest of the country. The owners were serial entrepreneurs who wanted to pursue other interests, and a broker was first hired to market and sell the business. After a year, no buyers had showed any interest in the business. The owners knew the business had its challenges, but it also had great potential, and realized that they needed a different broker who could market it more effectively.

THE SOLUTION

The owners interviewed several business brokers, and finally decided to hire Alamo Brokers of Texas to represent them in the sale of their business. We spent a significant amount of time up front analyzing the business and all its moving parts in manufacturing, wholesale, retail, on-line and franchise operations. We discussed some ideas with the owners to narrow down and redefine the business identity to coincide with the core strengths. This would help to better position the business to a potential buyer and also show the potential for future growth. Another challenge was how to qualify the business for third party financing, or the pool of qualified buyers would be very small.The business had only been a couple of years in its San Antonio location, and traditional lenders typically require a minimum of three years of operations to secure a loan. We needed to overcome this obstacle, or it would severely limit the pool of buyers. By tying its financials to a previously sold, separate entity in Austin, the business was eventually qualified for third party financing. The business grew fast, and after a few months of marketing, several qualified buyers were identified that were willing to pay full price. The seller decided to work with a buyer who had the background and financial strength to continue growing the business at its current rate. Alamo Brokers successfully negotiated the contract between the parties, assisted the buyer in closing the deal, and helped orchestrate a smooth transition to the new owner. Since the acquisition in 2015, the new owner has continued to grow the business at an accelerated rate.

CLIENT TESTIMONIAL

"Before discovering Alamo Brokers of Texas, we had listed our company for sale with a different broker. We felt this broker never understood the exact nature and value of our business. Even though we had a strong online presence, patented products, and customers to Fortune 500 companies, the other broker was not able to obtain a single offer for our business. When we then engaged with Stefan, he immediately identified the key value propositions of the company and very effectively communicated those with potential buyers. Stefan was able to market and position our business and within six months of the listing, he had obtained three offers from very qualified buyers. We then selected the best buyer from the three and our business was successfully sold. I can't emphasize enough how important it is for a potential seller of a business to find the right broker who understands and can communicate the value drivers to potential buyers. Stefan is one of the rare individuals who has this ability as well as the integrity and personality that will be an excellent representative for your business transaction."
— Dale Malone, Seller of Eco Box
"Stefan did an excellent job communicating, responding to needs, and collecting information in an organized fashion as we went into negotiations and due diligence. Once we got to Closing, my advisors and attorney all commented on the how impressed they were with how Stefan handled himself in some very tuff situations we put him in. Stefan is truly a man of his word and I am very thankful for his help as well as all he taught me during this process. For me personally I no longer see Stefan as just the guy who helped me find a business but a lifelong mentor/friend."
­— Ryan Scott, Buyer of Eco Box

CASE STUDY: PROPERTY TURNAROUND MANAGEMENT AND SALE

THE SCENARIO

A private lender foreclosed on a commercial property in Leander, Texas in 2009. The property comprised a 19,250 SF commercial multi-tenant building, located on 13 acres. A local broker was initially hired to manage and lease the property, but was not successful. Instead, the property fell into more serious disrepair and sat empty for several years. During this time, the City of Leander incorporated the area where the property was located, making a full sprinkler system mandatory in order to obtain a Certificate of Occupancy and drastically increased the property taxes. The property owners found themselves with a property that was not only a tax liability but in need of major repairs and upgrades to bring it up to habitable condition.

THE SOLUTION

Alamo Brokers of Texas was hired to turn the property around. The goal was to restore the property condition, lease it up, manage and stabilize the property, and eventually sell it. The critical property issues were remedied, such as leaking roof, water damage, missing/non-working HVAC systems, etc. Additionally, we met with the Appraisal District and negotiated down the property value and thus reduced the tax burden. We also met with the City Planning Department to negotiate a minimum acceptable improvement plan in order be able to lease the property. In accordance with the plan, among other things we hired a sprinkler installation contractor and managed the installation. With the property finally in rentable condition, it was marketed and leased to 90%+ occupancy within four months. Once the property was stabilized and had a solid income track record, it was marketed and sold at a price that satisfied the owners.

CLIENT TESTIMONIAL

"We have worked with Alamo Brokers of Texas on other projects, and knew that Stefan would have the skills and integrity to turn around this property. We are very pleased with his efforts."
­­— N. Elbaz, Seller

CASE STUDY: COMPLICATED PROPERTY PURCHASE WORKING IN CLIENT'S FAVOR

THE SCENARIO

Alamo Brokers of Texas was retained to find a suitable ranch property within convenient distance from San Antonio, Texas. After concluding the search, the preferred solution was to try to combine two adjacently located ranch properties located in the Hill Country between San Antonio and Austin. The combined properties of almost 100 acres had several desirable features, such as a running creek and great views. One property also had existing improved property with a deep water well and electricity. The catch? The two ranch properties were separately owned and also marketed by two separate brokerage firms. In addition, the combined asking price for the two properties was higher than the buyer was able to qualify for. This meant that even if the two properties could be put under contract individually, and even if each of the properties could qualify for the loan, there was a significant risk that the buyer would be stuck with one ranch property if the other property didn’t work out.

THE SOLUTION

We approached each owner separately and successfully negotiated the terms for both properties within the buyer’s budget. Once the terms were agreed upon in separate letters of intent, we prepared contracts to purchase each property separately. Each contract was however structured in such a way to ensure that the buyer would stay in control throughout the process. We contractually tied both properties to each other, which allowed the buyer to choose to close on both properties simultaneously - or to close on neither of them without any penalties. We then coordinated the due diligence process which found no major property issues. The buyer client closed on both properties simultaneously, and as an added bonus they only needed one combined loan for both properties which helped keeping the loan closing costs to a minimum.

CLIENT TESTIMONIAL

"Stefan obviously has an understanding of business and economics, and that played well into our plans to purchase a property that would suit our needs while still minimizing our long term risk, should our plans change. The negotiation strategy turned out perfectly. We got what we consider to be a great price and we did so without protracted negotiations, thanks to Stefan's knowledge and professionalism."
­­— Dan & Lisa Cornell, Ranch Property Investors

CASE STUDY: PRIVATE LOAN SOLUTION TO ALLOW BUSINESS EXPANSION

THE SCENARIO

A freestanding drive-through seafood restaurant located on a major street in The Colony, located just north of Dallas, Texas, had been shut down. The restaurant building was fully equipped and functional, but needed significant investment in renovation and interior updating. Most banks would require a significant down payment to buy the property, and most buyers would not have the funds available to buy and renovate the restaurant building, and still have operating cash left over. Herein lied the challenge.

THE SOLUTION

Alamo Brokers of Texas was engaged to sell the restaurant building, and found a well established Mexican franchise restaurant that looked to expand. Alamo Brokers structured a deal with the buyer to provide affordable private financing for the purchase of the restaurant. In return, the buyer agreed to invest a significant amount of their own cash to improve the property. After a quick closing, the buyer was able to start renovating the restaurant much faster than would have been possible with a bank-financed loan. In the process, the value of the restaurant increased significantly as well, giving the lender additional security in the property. Both parties expressed their satisfaction with the way the deal was structured, and the restaurant has performed very well since it opened up for business.

CLIENT TESTIMONIAL

"Stefan came up with a loan structure that protected us every step of the way. We also let him service the loan on our behalf and represent us if there are any issues. We are very satisfied with the results and feel we are in good hands with Alamo Brokers of Texas."
­— N. Elbaz, Private Lender