At Alderman Holdings, we set out to buy a business in 2015 but knew with just six months of time, this was an ambitious goal. So while we have not yet closed our first deal, we are well on our way and confident 2016 will be a great year. It’s been the process of finding great companies and meeting business owners that makes us even more confident in our original thesis.
That there are a large number of small to midsize local businesses (revenue ranging from $3-$15 million annually) with aging owners that lack a succession plan but that are seeking some sort of near term transition of ownership.
Throughout 2015 we’ve identified some common themes that we have termed Pain Points and Dream Points of aging business owners. The general question behind a pain point is what is keeping aging business owners up at night? And in regards to Dream Points, what does an aging business owner look forward to as he or she considers a sale?
We’ve outlined the top Pain Points and Dream Points below:
Top Pain Points:
- Can my business, and can I, survive another downturn in the economy?
- What will happen to my business if I sell? Can I trust the potential buyers to take care of my employees and the name I’ve worked hard to build?
- What will I do with my time if I sell my business?
Top Dream Points:
- I’m looking forward to an opportunity to spend more time with my family, pursue hobbies, and additional interests that always took the back seat to running our business.
- I like the idea of an opportunity to stay involved in some capacity with the new business owners to advise and take part in some upside while not having to bear all the responsibility and risk by myself.
- There’s validation that my work has been a success and that someone else sees the value I created and is willing to buy my business. That’s a success I always dreamed of.
During this season of reflection, make time for the hard questions. Be honest with yourself and work hard to identify where you are and where you want to be. If you’re considering the sale of your company or know someone that is, we’d love to visit with you. It’s our goal, at Alderman Holdings, to buy and grow strong, local businesses for the long term. It’s with this goal in mind that we see an opportunity to make a lasting impact in our community and continue to make Chattanooga the best place to live and raise a family.