Resources
Next Webinar: August 18th
Topic – How to Prepare Your Business for a Strategic Acquisition
Learn how to prepare your business so it’s sellable to a strategic buyer, ensure your sale remains confidential, you pass due diligence, pay zero taxes, and earn a 4x – 7x multiple on your earnings – even in an high-interest rate environment.
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Announcement: OpnRoad partners with Village Wellth to produce an M&A masterclass
OpnRoad News
3 Conferences in 2 Weeks – OpnRoad’s 2022 Tour
Scott heads off on a 14 day tour to Arizona and New Denver, his biggest educational tour of 2022. Beginning with the 2022 Exit Planning Summit, Scott will be working alongside Capitaliz to share their newly launched software. On May 5th Scott will be presenting at...
OpnRoad Launches New Website
OpnRoad is excited to announce their latest launch of www.opnroad.io. Scott Duke and his design team spent countless hours creating www.opnroad.io to more easily outline and share their services to the entrepreneurial, advisory, and investor communities. OpnRoad has...
Business Sale Process
STEP 1 - Set Objectives
Knowing what a perfect exit looks like for you, your shareholders, your family, and your stakeholders is the first step, and most important step toward a successful exit.
Owners need to have a clear vision of what makes their exit a success and define how the sale drives purpose for their next stage in life.
STEP 2 - Valuation
Know exactly what your business is worth in today’s market, and where the value comes from in the eyes of a buyer.
Only when your business’s value drives are known and understood can they be leveraged during negotiation.
STEP 3 - Risk Analysis (Sellability)
Determine if your business is sellable, and if it will make it through a buyer’s due diligence process.
STEP 4 - Marketing
Create your Blind Profile (teaser), Financial Overview (normalized financial statements), CIM (Confidential Information Memorandum), and Marketing Video.
Confidentially market business to your network, or leverage our marketing system to put your opportunity in front of 10,000+ active buyers.
STEP 5 - Negotiation
Navigate the bidding process, LOIs (Letter Of Intent), and negotiation to maximize the sale price.
STEP 6 - Closing Activities
Navigate legal documents and the transition of all tangible, and intangible assets.
Owner Education
OpnRoad’s subsidiary Gateway Capital produced two learning products in 2019 to help owners and new brokers navigate the M&A process.
The Business Sale Accelerator is a detailed guide walking owners step-by-step through the process of selling a privately held company.
The Business Sale Navigator is a short course giving owners a 30,000 foot view on value enhancement and the business sale process.
Resource Library
At OpnRoad, we created to most comprehensive list of transactional professionals, business sale service providers, valuation tools, lenders, value advisors, and business sale resources on the web.
Without questions this resource library is the largest source online of links to help you sell your business.
Entertainment
OpnRoad produces The Happy Dealmaker YouTube channel which is a light-hearted video series educating owners on how to build sellability into any business.
The channel is hosted by our founder Scott Duke, and you will see some of his entrepreneurial and more eccentric side shine through to keep things entertaining!
QUICK Links
Top 5 – Deal Killers
From 2001 – 2010, our founder Scott Duke had 5 of his 11 companies fail to sell. This was his primary motivator for learning how to build transferability into a business and entering into the M&A industry.
When it comes to failed business sales, Scott is not alone. 80% of businesses that go to market never sell, or have to be liquidated.
Listed below are the top five reasons businesses fail to sell:
Profitability
If a business’s normalized earnings are under $100,000 it creates challenges for a sale because there is not enough free cash flow to pay an owner’s salary and service the debt from financing a purchase.
Role-Identity Fusion
In many instances, businesses are unsellable because the owner has tied their identity, social well-being, and life’s purpose to the creation and operation of the business.
Subconsciously, they feel if they sell the business a part of them is dying.
The subconscious thought of death prohibits the owner from signing the sale document and they walk away from their own successful sale agreement.
Owner Dependance
If an owner needs to work in a business more than 10 hours per week, it’s an indication of owner dependence.
Some owners can easily resolve this issue by delegating work to a GM. Others have difficulty transferring power and are forced to stay on for 2-3 years post-sale to train a new manager for the buyer.
In some cases, the owner’s skill set is not transferable, making the business unsellable.
Customer Concentration
If a single customer represents more than 15% of revenue, 90% of buyers will not move forward with the purchase as the riskiness of the business is deemed too high.
OR
If a single customer represents more than 30% of revenue, the business is unsellable due to insolvency risk if the single customer were to be lost.
As investment banker Rob Slee states, “the company is one phone call away from oblivion.”
Supplier or Key Person Dependance
If the business is reliant on a single supplier that can’t be replaced, it may be unsellable.
If the business is reliant on a single employee’s knowledge or skillset it may be unsellable.
Upcoming Events
Exit Planning Institute Conference: May 1st – 3rd …More Info
IBBA Conference: April 5th – 8th …More Info
M&A Source Conference: April 8th – 10th …More Info
How to Win in Your Deal
Experienced, practiced, and equipped competitors win at any game.
And in the world of business sales and acquisition the most experienced players have an extremely unfair advantage.
When selling your most valuable asset, to ensure you are prepared to win you must:
- Know what your company is worth and why.
- Ensure your company will make it though an investor’s discovery and due diligence process.
- Prepare your business so it’s set up to be transferable.
- Hire an experienced team and tie their compensation to your wealth creation.
Brochure and Pricing
If you would like more detail on any of our products or services please download our brochure.
Our brochure details the cost of each product, outlines how each service is delivered and how it benefits our clients.
Connect
Address
410 Cedar Street
Box 2287
Revelstoke, BC
Canada
V0E2S0
Phone
1-888-652-7370
info@opnroad.io
