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Exit Strategies

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...

Feature Story:

Are You Ready To Sell?: Planning A Comprehensive Exit Strategy »

By Dean Zuccarello

Planning, planning, planning. We all participate in some form of planning: what to do with our weekend, scheduling all the kids' activities, forecasting next year's business plans, and maybe even "someday" plans. But how many of us have actually considered or created a plan that addresses not only how and when we will exit our businesses, but also whether and how family members and/or related parties will be a part of that plan?
In our 24 years in the restaurant and franchise M&A space, we have witnessed numerous occasions in which a potential seller decides it's time to sell their business--but has not adequately addressed such crucial items as timing, valuation, tax consequences, succession planning for family members, or the future of their management team...

Feature Story:

Loyalty Deserves Rewards: Create A Rewards Program That Suits You (And The Customer!) »

By Jack Mackey

The best loyalty programs do four things:

Feature Story:

M&A Valuations To Fall?: New Rules Likely To Curtail Bank Lending »

By Dean Zuccarello

In March 2013, U.S. banking regulators issued new guidance designed to curb increasingly aggressive lending by both banks and finance companies. The new guidance is intended to provide a "safer" financial landscape and reduce the risk of a financial crisis like the one that occurred in 2008.
Background. Regulators have been under fire from Congress and the current administration for failing to address what is believed to be overly aggressive lending preceding the financial crisis. Historically, the Fed could use its open market policy to raise interest rates as a mechanism to manage lending risk. Theoretically, weaker credits and riskier transactions would be unable to support the higher interest costs, and thereby reduced lending risk...

Feature Story:

The Myth Of Multiples: Beware Of Over-Reliance On EBITDA »

By Dean Zuccarello

Whether the mergers and acquisitions market is in a hot upswing or in a down cycle, one valuation measure remains the primary focus in nearly all transactions: the multiple of EBITDA (or cash flow).
This seems to be universally true, as it is used by buyers, sellers, finance sources, franchisors, franchisees, investment banks, and private equity groups. In more than 23 years of managing M&A activity in the franchise sector, we continue to scratch our heads at the overemphasis and focus on EBITDA multiples. This article explores what we describe as "The Myth of Multiples," and how deal-makers put too much emphasis on this inconsistent measure of value.
While the arithmetic to calculate a multiple is simple (transaction price divided by EBITDA), the variables in the calculation are not quite so simple...

Feature Story:

Preparing For Departure: Experts Share 3 Crucial Planning Steps For Leaving The Business You Built »

Multi-Unit Franchisee

More and more small business owners are selling their companies, with sales hitting a four-year high in early 2013 in the United States, and Canada predicting its largest small business turnover ever in the next five years.
"Many of our CEOs are baby boomers approaching retirement age," says Kathleen Richardson-Mauro, co-author with Jane M. Johnson of a practical new guide, "Cashing Out of Your Business," (www.richardsonmauroandjohnson.com).
"We're about to see a tsunami of ownership transitions and Kathleen and I worry that too many of these small business owners are not taking steps early enough to plan for it," adds Johnson.
Richardson-Mauro, a Certified Financial Planner, and Johnson, a Certified Public Accountant, specialize in helping business owners successfully transition out of companies and achieve their goals...


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2016 Mega 99    

Multi-Unit Franchisee Magazine

Issue I, 2016

Multi-Unit Buyers Guide    

2015 Multi-Unit Buyers Guide

Special Edition

Top Opportunities »

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