Coastal Marine Engine and Canal Boatyard Sale Finalized

Roupp Acquisitions Inc is very proud to continue its success in the marine industry with the sale completion of Coastal Marine Engine Inc and Canal Boatyard LLC in Seattle, WA.

A stalwart in the PNW for over 25 years, Coastal Marine Engine has been a leader as one of 6 Volvo Power Centers in the US selling new engines, parts and service. As a complementary but separate business, Canal Boatyard handles the haul outs and storage for boat owners requiring work on their precious pleasure crafts.

We had multiple qualified candidates with multiple offers but were able to locate the best and final Buyer within 10 weeks of going to market. In the process Roupp Acquisitions noted several ‘first’ records including the first Buyer to tour the business being the ultimate Buyer to finalize the purchase.

The Seller commented, “We thank Roupp Acquisitions for keeping us on track during the sale our 2 companies. This was one of the most important transactions of our life and we could not have done it without their help.”.

We are thrilled with the future outlook of both companies and look forward to the Buyers continued success as they take advantage of the summer season.

Roupp Acquisitions Inc – Current Listings


Selling a Business: Getting What You Need

We received this wonderful white paper from Bernstein Global Wealth. With their permission we are reprinting a portion. You can download their full paper here.

Selling a private business is best thought of as an ongoing planning process that begins well before the deal is consummated and ends well afterward. But at every point along this continuum, the owner and their professional team are grappling with and resolving both financial and personal issues. Bernstein’s proprietary modeling capabilities can quantify the likelihood that a sale will meet an owner’s critical financial objectives and help evaluate the trade-offs across different deal terms.

You Can Get Satisfaction.

Sir Michael Jagger, better known as Mick, led The Rolling Stones in proclaiming that “You can’t always get what you want…but you just might find you get what you need.” This trade-off applies to all things in life, including investments, and it has special validity when selling a private business. Although an owner’s focus may be on getting their “magic number” for the business up front, they may find that other alternatives offer acceptable, or even superior, trade-offs.

We begin with the premise that business sales are typically complicated, and laden with emotional issues. The owner is selling their means of livelihood, and more—the configuration of their financial portfolio: They’ll have to make the transition from relying on business earnings to living off the pool of liquid investments generated by the sale. The good news is that sellers are not in the process alone, but generally represented by teams of advisors, usually quarterbacked by a Business Broker and including a portfolio-management professional such as Bernstein. The role of the investment manager is not to pass judgment on one or another term sheet, but to place each in the context of the seller’s overall financial objectives. This can be done at any point in the deal—but the sooner the better.

A Thicket of Questions

How much is my business worth?
What’s the best deal structure for me?
Will I get enough to meet my needs?
Is all-cash-now better than staged/contingent payments?

Do I want to stay involved in the business?
Do I have a plan for my life after the sale?
What effect will the sale have on my family and employees?
Do I have the risk tolerance to accept contingent deal terms?

These questions parse some of the interconnected financial and emotional issues that arise when selling a business. For example, whether the owner receives “enough” for their business depends on how much it generates in earnings and how much the market is willing to pay for those earnings. But directly connected are issues like whether now is a good time to sell, whether the owner wants to retain an interest in the business for a while longer— often a negotiable point—and how the sale will impact the owner’s family and employees. All of these issues affect owners’ personal lives as deeply as their financial wherewithal—and on both sides of that equation professional planning can identify opportunities and help solve problems.

Further, each of these questions leads to additional questions. Arriving at answers is made none the easier by the blizzard of alternatives often available, and frequently buyers and sellers find themselves in disagreement about deal terms, legalities, and tax-related matters.  The job of the professional teams—the seller’s and the buyer’s—is to satisfy their respective clients, resolve as many issues as possible before the consummation of the deal, and monitor the transaction as it moves forward.  And there are never one-size-fits-all answers.  One seller may justifiably be anxious to consummate the deal before taxes go up in 2011; another may be willing to pay the higher levy if they expect their earnings to increase significantly in the near future, raising the value of the offers they’ll receive. The question is whether the risk of waiting will pay off.

What about the environment? Is this a good time to sell? Evidence of an economic recovery is mounting, but financing is still tight, and there are no assurances about what the future will bring. In addition, the profit dynamics of every industry—and, more important, for every company—are different. That last criterion is the one that truly counts for a business seller: It’s their company and their livelihood that are at issue. The job of their professional team is to keep them from falling into one of two traps: rushing headlong into selling now because the “landscape” looks good, or refusing to budge because it was better several years ago and good times may be around the corner again.

Still, owners need a touchstone for deciding whether to sell, and one metric might be if the proceeds—whether all up front or parceled out over time—are at least enough to provide for the owner’s lifetime spending needs.

Small Business Jobs and Credit Bill Highlights

It’s official! Selected Provisions Affecting 7(a) and 504 Reid Amendment 4594 to H.R. 5297 (Small Business Jobs & Credit Bill). Here is a recap.

SBA Credit Incentives:

• Fee Reductions: extends the authority for 7(a) and 504 fee reductions and 90% 7(a) guarantees through December 31 or until $505 million in appropriations is obligated.

• Maximum Loan Amounts: permanently increases the loan maximum on 7(a) loans set at $5 million gross and $3.75 million net (or guaranteed amount) and on 504 loans, including public policy loans, set at $5 million, except small manufacturer loans and energy loans are set at $5.5 million.

• Maximum Loan Amount of SBA Express: temporarily increase the maximum amount of an express loan at $1 million for 1 year.

• Division of Large Loans: upon request of a loan pooler, SBA will divide a large loan into $500,000 increments for inclusion in separate pools.

• Dealer Floor Plan Financing: new financing program for dealers for cars, RVs, boats and manufactured homes, but sunset September 30, 2013.

• Alternative Size Standard: pending SBA establishment of an alternative applicable to both 7(a) and 504, establishes a standard of maximum tangible net worth of $15 million and 2-year average net income after Federal income tax of $5 million which will apply to both programs.

• International Trade Loans: makes numerous changes in international trade loans, including working capital, primarily permanent loan size increases to $5 million and 90% guarantees and making the export express program permanent.

• Debt Refinancing: establishes a temporary 2-year program of business debt refinancing through the 504 program independent of the usually required job creation/preservation goals of one job for $65,000. This enables 504 to be used for refinancing of qualified existing debt without business expansion.

• Guarantees of 1st mortgage loans: extends the sunset on the new temporary program for partial guarantees of the bank portion of 504 financing. The program will expire 2 years after the date the first pool sale occurs.

• Microloans: permanently increases the maximum per small business borrower to $50,000 and per intermediary to $5 million. Also authorizes SBA to waive intermediary match requirements during fiscal years 2011 and 2012.

• Intermediary Lending Pilot: establishes a 3-year pilot program to provide capital to 20 non-profit intermediaries annually to make loans targeted to startup, newly established and growing small business concerns. CDCs should be eligible to participate.

Tax Incentives:

• Zero Taxes on Capital Gains from Key Small Business Investments: Under the Recovery Act, 75 percent of capital gains on key small business investments were excluded from taxes in 2010. The Small Business Jobs Act temporarily puts in place for the rest of 2010 a provision eliminating all capital gains taxes on these investments if held for five years.

• Extension and Expansion of Small Businesses’ Ability to Immediately Expense Capital Investments: The bill increases for 2010 and 2011 from $250,000 to $500,000 the amount of investments that businesses are eligible to immediately write off.

• Extension of 50% Bonus Depreciation: The bill extends a Recovery Act provision for 50 percent “bonus depreciation” through 2010 with the ability to make new investments today and know they can receive a tax cut for this year by accelerating the rate at which they deduct capital expenditures.

• A New Deduction of Health Insurance Costs for Self-Employed: The bill allows self-employed to deduct the cost of health insurance for themselves and their family members when calculating their self-employment taxes.

• Tax Relief and Simplification for Cell Phone Deductions: The bill changes rules so that the use of cell phones can be deducted without burdensome extra documentation.

• An Increase in the Deduction for Entrepreneurs’ Start-Up Expenses: The bill temporarily increases the amount of start-up expenditures entrepreneurs can deduct from their taxes for this year from $5,000 to $10,000 (with a phase-out threshold of $60,000 in expenditures).

• The bill would allow certain small businesses to “carry back” their general business credits to offset five years of taxes: providing them with a break on their taxes for this year – while also allowing these credits to offset the Alternative Minimum Tax, reducing taxes for small businesses.

• The bill would change, beginning this year, the penalty for failing to report certain tax transactions from a fixed dollar amount which was criticized for imposing a disproportionately large penalty on small businesses in certain circumstances to a percentage of the tax benefits from the transaction.

Where is the Dose of Lithium?

The news this year has been a mixed bag thus far. From market momentum to market corrections to politics to volcanos to oil spills to sovereign issues around the globe the very ground we stand on has seemed unstable.

All-in-all this has created what seems like a manic environment requiring a healthy dose of lithium to find steady footing and even keel emotions.

Well, we have some positive news to report. The quality of Seller inquiries has risen, decision-making paralysis has decreased across both sides of the table, the quality and expectations of Buyers have also leveled and their willingness to commit has increased.

What we are seeing on the ground level is confirming and building upon our 1st Qtr newsletter Timing is Everything. A recent study put out by BizBuySell, a leading business for sale website, reports increased business transactions, reduced time on the market and increased pricing multiples. All of which are very encouraging for a strengthening environment.

We look forward to the day the markets, sovereign entities around he world and all the geographic occurrences find solid footing but until then we will do our best to keep you abreast of our particular brand of insight on business successions.

For Example;

We are very proud to announce three new business opportunities below. All of which have something unique to offer with at least three traits in common. All three have a unique niche within their industry, each one has been established for more than 25 years and they all are family owned.


Michael Roupp
President & Designated Broker

New Listings Announcement

We are very proud to announce the addition of 3 new listings. All of which have 3 characteristics in common; family owned, specialized niche markets and all 3 have been in business over 25 years. Have a look and let us know if you or anyone you know are interested in a closer look.

Energy Efficiency Installation
This is a family owned business that has received many awards and accolades in their community. The Company is a reseller and installer of fine windows, glass, skylights and doors in the Home and Commercial industry. The Company handles everything but automotive glass with 40% commercial and 60% residential two-stories and under. Click on the title link to learn more.

Specialty Equipment Leasing
Long established and nationally renowned niche equipment leasing company with 30-40% adjusted EBITDA. Company has enjoyed an illustrious position of picking and choosing the quality and number of customers in their niche across more than 35 states. Company uses personally guaranteed credit lines with high double-digit spread margins and zero cash out-of-pocket. Click on the title link to learn more.

Marine Repair Niche
This Company has serviced many facets in the marine industry for 20+ years with a strong reoccurring customer base spread across the Pacific NW, AK and MT. This Company enjoys several exclusive positions allowing the them to maintain their strength and profit margins through the past 24 months. They are looking for new Ownership to take the helm. Click on the title link to learn more.

Looking forward to being interviewed on with Mike Siegel this afternoon. I’ll post the podcast if all goes well.

Livingston BoatsAnnouncement:

Livingston Boats Sale Finalized

Happy New Year to all.

Last year was certainly not easy but in a challenging environment and within an industry down 65%+, we are very happy to announce the closing of Livingston Boats Inc.

An iconic boat manufacturer in the PNW since 1968, Livingston Boats is an 18′ and under catamaran shaped hull boat manufacturer known for durable, stable and safe boat designs.

After screening 35 buyer candidates, we were able to present our client with three purchase offers giving them the option to choose the best candidate to carry on the forty-year old Livingston brand.

The buyer commented, “Not only did Roupp Acquisitions do a great job for the Seller but they were a tremendous resource for us as well”.

We are thrilled with the future outlook of Livingston Boats and look forward to our clients continued success and ongoing relationship with the Buyer.

Roupp Acquisitions Inc – Current Listings