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Exit Strategies

Feature Story:

Dealing In Reality: Why Do Some Deals Fall Apart? »

By Dean Zuccarello

The M&A marketplace has seen some impressive activity over the past few years. Theoretically, this should have created a positive environment for all people looking to execute an M&A transaction. In spite of these favorable conditions, there are groups that can't seem to get a deal done. In many cases, these are people who care more about "winning" than consummating a transaction. Let's examine how to engage in industry standard business practices that can improve the likelihood of transaction success, while still getting the most for both buyer and seller.
When an investor divests 100 shares of stock each worth $10, they go forward with a sale for $1,000 without question, because that is what the market has deemed fair and acceptable...

Feature Story:

Getting In The Game: New Entrants Must Pay More To Play »

By Dean Zuccarello

"The secret of getting ahead is getting started." --Mark Twain

Financial and first-time buyers are showing tremendous interest in the franchise space. Yet as they are continually outbid for attractive opportunities, the frustration in entering certain systems may be at an all-time high. Why is this the case? One reason is that to be competitive, they will typically have to accept a below-market return on their first deal. This is also known as the price of first-time entry, a key facet of doing deals known to industry insiders.
At the other end of the spectrum, we have seen consolidation in the big franchise systems in recent years, which has in turn created the "mega franchisee." Why does it seem so easy for these massive franchise operators to continue to grow their holdings, while other prospective qualified buyers struggle to gain entry?
Sitting in the position of a first-time buyer or new entrant to a particular franchise concept can be a huge challenge...

Feature Story:

Keep Calm (If You Can): 5 Tips For Managing Emotions In A Sale »

By Dean Zuccarello

Many of the topics we address as a firm focus on the technical aspects of a transaction, such as market observations, quantitative measurements, and other deal points, but seldom do we discuss the emotional side. While the financial aspects of a deal are important, the intangible feelings associated with selling a business also have a significant impact on the process. Here we explore the emotional side of selling and provide five tips for achieving a successful outcome.
Selling a business involves many different challenges. Corporate sellers generally have the benefit of emotional detachment from the selling process and are typically focused more on price and execution. Entrepreneurial sellers have the added burden of dealing with a multitude of emotional challenges, such as letting go of a business they have created, built up, and managed for a long time...

Feature Story:

Keep Calm (If You Can): 5 Tips For Managing Emotions In A Sale »

By Dean Zuccarello

Many of the topics we address as a firm focus on the technical aspects of a transaction, such as market observations, quantitative measurements, and other deal points, but seldom do we discuss the emotional side. While the financial aspects of a deal are important, the intangible feelings associated with selling a business also have a significant impact on the process.
Corporate sellers generally have the benefit of emotional detachment from the selling process and are typically focused more on price and execution. Entrepreneurial sellers have the added burden of dealing with a multitude of emotional challenges, such as letting go of a business they have created, built up, and managed for a long time. This dynamic should not be ignored...

Feature Story:

Small Is Still Beautiful: Single-unit Franchisees Will Survive »

By Dean Zuccarello

It seems we read about more and more franchise acquisitions every day, where one franchisee becomes larger by purchasing another. Franchisees seem to be growing ever greater in size, with fewer small franchisees in the marketplace. Is this really what's happening? And if so, why?
1) The franchise model. Franchising, created as a way for capital-intensive, multi-unit businesses to rapidly expand their reach, has been a common business practice for more than 50 years now. In that time it has provided a great opportunity for entrepreneurs seeking to operate an independent business, but not the risk associated with creating their own concept. The franchise model was perfect: operators were equipped with a formulated method to successfully operate and market their business and were able to own and run their own companies...

Feature Story:

Selling? Get The Right Attorney »

By Dean Zuccarello

Deals require industry-specific expertise
After several months of testing after an initial diagnosis by your family doctor, you now must schedule surgery for a heart condition. What do you do next? First, you get recommendations from hospitals, other doctors, and reliable friends for the best specialists. You meet with and interview several of those recommended, ultimately choosing the right person for your specific situation. After all, entrusting your family doctor with something clearly outside their realm of expertise would be ludicrous, right? You want the best specialist available.
So how could you have a different mindset regarding a critically important economic decision, such as the sale of your business? We see this happen every day...

Feature Story:

Keeping It Real: 6 Factors To Consider Before Selling Your Real Estate »

By Dean Zuccarello

Historically in franchising, real estate was coveted as a key strategic asset. Most franchisees overwhelmingly preferred to acquire the real estate as part of any new development and/or acquisition they were contemplating. Over the past 20 years we have observed an evolution in this franchise-real estate dynamic. Many franchise owners with substantial real estate holdings have been selling properties, and fewer new units are being developed with fee-owned real estate. Why the change?

Feature Story:

Mid-sized And Growing: A Stellar Leadership Team Can Take Your Operation To The Next Level »

By Robert Sher

Successfully operating a multi-unit franchise--typically generating millions of dollars in revenue from many locations--requires a keen awareness that leading multiple units is fundamentally different than leading a small operation. Unfortunately, too many multi-unit franchisees rely on the leadership approach they used when they were a small business, running the business themselves or promoting from within without the proper training. The result? Derailed profitability, stunted growth, and high management turnover.
The only way for mid-sized multi-unit franchisees to grow and prosper is to plan for and invest in a trustworthy and competent leadership team. As proven time and again, the bigger the investment in leadership, the bigger the potential return...


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