Investing in your business (pre-sale) is tricky. Last week’s NAMA Show featured several exhibitors that are well worth reaching out to. They can build your sales volume and business value in the year before selling your company, without a huge commitment.
One of the keys to building the value of your business before selling your company is to find an easy and sensible way to build sales volume. There were several exhibitors at the NAMA Show in Atlanta that struck me as being able to accomplish that, and more, for operators.
The design and sustainability play
Borg & Overström designs and manufactures sustainable water coolers and tap systems for corporate, educational, healthcare and office environments. They could be considered a sustainability play, except that their Scandinavian inspired designs are so impressive, design becomes the most compelling selling point.
While the equipment is high end, equipped with touch free sensor beam technology along with available connectivity, Borg & Overström point of use coolers are more competitively priced than some of the other high end water systems.
Why it makes sense:
- Borg & Overström units are impressive enough to win deals and add needed sales volume.
- Recurring and steady rental income is valued by buyers.
- Many of the largest buyers out there are already aligned with Borg & Overström, which will make the transition an easy one after the sale.
The quality and sustainability play
ansā Coffee is on the verge of altering the north American OCS landscape. Their AI driven micro roaster is designed to roast whole bean coffee in the workplace, without smoke, just a pleasant aroma. The result is perhaps the best tasting coffee on the planet, since the coffee is available to enjoy within minutes of roasting. Because ansā delivers coffee from the farm to cup, it is certainly the most sustainable coffee service solution available.
Why it makes sense:
- No major investment. The operator receives the micro roaster for a nominal monthly service fee and buys premium green coffee beans from ansā.
- ansā is so attractive to high end office environments, it can open the door to some locations with high sales volume.
- Like Borg & Overström, the big players are partnering with ansā and they will be happy to see it in place when they begin exploring the purchase of your company.
The preservation of capital (and sensible) play
Instead of spending thousands on ice machines to secure huge accounts, Easy Ice offers a subscription service, basically a lease, that allows operators to charge an override, above the lease cost, to enjoy immediate positive cashflow without any additional costs. Easy ice handles the installation, preventive maintenance, and service, all of which can be a major headache for operators.
Why it makes sense:
- The last thing an operator needs to do is spend 3 to 4 thousand dollars on an ice machine when they are thinking about selling their business.
- Whether an operator is selling their business or not, Easy Ice has a model that is so attractive, it is a no brainer, considering the elimination of costly service issues.
- The model is becoming increasingly popular and in fact, Easy Ice has now developed a program to buy out existing ice machines, returning much needed capital to operators, while they still enjoy a positive cash flow rental.
The breakfast play
Any micro market operator who is not giving proper attention to breakfast, is missing out on a huge revenue opportunity. Look to Tyson Foods and E.A. Sween for premium breakfast sandwiches that will add new sales and increase the value of your business.
Why it makes sense:
- Post pandemic breakfast sales are booming and breakfast consumption is no longer limited to morning hours. Studies show that consumers are now eating breakfast items all day long.
- There is no easier way to elevate sales (other than raising prices) than to build up the breakfast portion of a micro market menu. It will translate to big dollars when a sale occurs.
The “lighting” play
Lighting for Impact (LFI) wasn’t exhibiting at the NAMA Show, but they had products on display at the Holiday House booth. The impact of powerful micro market lighting is impressive and according to retail data provided by the company, LFI products clearly generate increased sales.
Why it makes sense:
- Adding LFI to a micro market will increase your sales with minimal investment, resulting in a quick ROI – just perfect for an operator who is planning to sell their business within the next year.
- The biggest companies in the industry, the most active industry buyers, are already using LFI to light their products, so they will be thrilled to see that the seller has invested in proven technology.
Our Philosophy at VBB Advisors
“No matter what is going on with the economy or the world, it is time to sell your business if you are ready and we can make the right deal, a deal that makes sense for you, your family and your company.”
Buyers come to me because they know that I serve sellers who have thoroughly and thoughtfully considered their exit strategy with my help. That is the type of seller that you want to be – a seller who has their ducks in order, has taken steps to make their business as attractive as possible and a seller who values their employees enough to make a deal that everyone will feel good about.
Take that critical first step. That is often the toughest one to take.
Order my free 2023 Exit Strategy Planner. At the very least, it will provoke some thought, and this is a good time to think about your future.
Whatever your reasons are to sell your company - the timing, a sense of frustration, the desire to enjoy life or an interest in rewarding yourself for years of hard work – VBB Advisors can help you realize your goals.
I am Mike Kelner, the leading sell side intermediary in the convenience services industry. Let’s sit down and have a conversation. Use this appointment scheduler to set up a meeting with me.
Or – give me a call at 704-942-4621.
