Tag Archives: doors and windows for sale

OIB Opportunities in Business

Reasons Acquisitions Fail and How to Succeed

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Growth through acquisition is promising but is not without its pitfalls. There are several common, avoidable reasons acquisitions fail and learning from these mistakes and oversights can set your company up for successful future acquisitions.

Leadership: Acquisitions fail when leadership is not proactive or sufficiently involved in the acquisition process.

Due diligence: Acquisitions fail when companies do not act on due-diligence discoveries.

Technology: Acquisitions fail when buyers have unrealistic expectations of system integration.

Strategy: Acquisitions fail when a clear strategy isn’t used to determine integration goals.

Talent:  Acquisitions fail when buyers lose key talent during the process.

Financial overextension: Acquisitions fail when negotiations get dragged out and deplete financial resources.

Culture: Acquisitions fail when buyers trample the culture of the company being acquired.

Synergy: Acquisitions fail when buyers come in with too high of expectations of merger synergies.

Communication: Acquisitions fail when communication breaks down and causes a chain reaction of disconnect and disappointment.

A few tips to Succeed

  • Be thorough. Leave no stone unturned throughout the acquisition process.
  • Pay attention to mergers and acquisitions in the news. Learn from other buyers!
  • Acquisitions take time and cost money – be patient and methodical.

Your diligence will pay off and your company will grow! Considering business acquisition? Reach us anytime at 612.331.8392 or by email at info@oibmn.com.

Buys and Sells used “one of a kind” Architectural / Building / Antique items.

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TYPE OF BUSINESS: This well established salvage yard, which was established over 50 years ago by the current owner, buys and sells used “one of a kind” Architectural / Building / Antique items for residential and commercial properties. Samples of the products are lighting, fireplace mantels, buffets, lumber, hardware, doors and windows. The business is well known for their outstanding selection.  The owner’s responsibilities are to oversee the operation and purchase the used inventory.  Owner is willing to work with a new owner after the business has been sold to insure a smooth transition. Hours of operation are 8:00a.m. – 5:00p.m. Monday – Friday and Saturday 8:00a.m. – 1:00p.m. The potential to grow this business is tremendous.   A new owner would want to have all their products available through the internet. Currently, the business has a web site but needs a major upgrade.  This is the largest company of this type in Minnesota. There is a tremendous opportunity to sell these products over the internet.

 

FACILITY:  This business operates in a free standing 93,000 sq. ft. Seller willing to give new owner rent free (building only) for up to 2 years.  The business must re-locate.

 

EMPLOYEES: 6 full-time and 5 part-time employees.

 

GROSS SALES/CASH FLOW:  The gross sales for 2012 were approximately $800,000, 2011 were $792,500; 2010 were $1,008,350 and 2009 were $1,046,450. Based on 2012 sales, the owner reports that cash flow was approximately $118,000 ++.

 

ASKING PRICE: The asking price for the business is $250,000, which includes equipment, furniture and fixtures (estimated value $200,000).  The owner is willing to sell the inventory to the buyer on a consignment or floor plan basis.  The buyer will not have to pay for the inventory until it is sold.  The cost of the inventory to the buyer will be negotiated between buyer and owner.  The owner indicates that the cost of the inventory is in excess of $1,000,000.

 

REASON FOR SALE:  The owner is tired and wants to retire.

 

Important Notice:  The above information has been provided by the Seller.  Neither The 20/20 Group, Inc. (dba Opportunities In Business) nor its agents guarantee its accuracy or comprehensiveness.   7670  b.k.