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 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 in its San Antonio location for a couple of years, 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.
"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