Listings


Announcement:
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

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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

Financial:
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?

Emotional:
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.

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.

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

When is the Right Time to Sell Your Company?

The short answer: before you need to.

Too often we are approached by Sellers with time constraints creating pressure to sell their company in less than ideal conditions regardless of the prevailing economy. Such pressures could be family, health, burn out or personal financial situation.

Buyers wanting solid companies with discounted pricing look for these circumstances.

Without proper planning, these pressures can creep up and prevent capturing the best value of the company. This is where Exit Strategy planning comes into play.

By having a 3, 5 and 7 year exit strategy, you can focus on the light-at-the-end-of-the-tunnel working toward an end-game. Whether you choose to exercise the plan when the time comes is up to you but by having the plan you might reduce the chances of being caught off guard and forcing you to contemplate unattractive options.

We recommend the same planning for every Buyer looking to purchase a business. We have found that there are times when some business owners without exit planning slip into the category of owning a job. The ideal situation is being in the position of working ON the business rather than working IN the business.

So when is the right time to sell your company? By choice based on a pre-planned strategy while you are working ON the business in the position of strength.

We focus on opportunities possessing these and other key ingredients for both Sellers and Buyers.

Please contact us if you or any of your associates are interested in learning more about these and other strong opportunities we have.

Roupp Acquisitions Inc – Current Listings

Wood Mfg Montana
A long established wood manufacturing company with a national customer base and primary production in the USA along with supplemental production facilities in China. Company has a very stable work force increasing their profit margins over last year. Owner enjoys 6-7 weeks of vacation per year plus optional trips to China. Company owns the 18,000 sqft manufacturing facilities in Bozeman, Montana. Click on the title link to learn more.

Current State of Affairs

With the current uncertainty in the market we thought it important to showcase the positives and strengths of our current opportunities.

Certainly the financial and residential industries have taken a temporary turn for the worst but small business thrives and below we have examples of strong growing companies during challenging times.

Please contact us if you or any of your associates are interested in learning more about these and other strong opportunities.

Metal Casting Foundry
Our client is a green sand steel casting foundry with a diversified customer base over many industries. Through all the recent economy, market and commodity turmoil they have experienced record numbers, their largest order backlog in history and currently tracking better than their 2007 successes.

Carpet Cleaning Services with Real Estate
This client has felt very little effects of the economy and continues to expand by hiring additional cleaning. The Owner works 20 hours or less per week and is offering the business and Real Estate as a package for less than the individual fair market value of each. This business has been pre-screened for SBA lending dependent on the strength of the Buyer.

High Tech Construction
Our client specializes in technical facility construction such as bio-medical, cleanrooms and data-centers with an enormous contract backlog and $10,000,000 in revenue they are an ideal acquisition for a strategic buyer.

CPA Practice
A well established public accounting and small business consulting practice with nearly 1000 transferable clients located in the pristine San Juan Island. They have grown organically with little effort and a positive community relationship.