Handling an unforeseen tragedy in 2020. Problem/Issue:
25 year old family-owned business with revenue in the $5-10M range.
Sudden death of owner who sold and maintained 80% of the accounts.
Recently, the company lost their biggest client.
Out of $1.5M inventory about $1M of it was out-of-date and would have to be salvaged.
The company owned building and real estate.
Relationships in the family were lukewarm.
The spouse and children did not want to maintain the business and wanted to sell the business, building and real estate.
Develop a relationship based on trust with each family member.
Determine the value of all assets individually and collectively
Appraisals from licensed entities for land and building
Verify inventory value including salvage amount for dead inventory.
Value for fixed assets
Review of financials
Past three years up to current
A/R, Cash Flow and the Balance Sheet
Identify potential buyer(s) for all assets.
Provide options to estate
Received authority level from family for estate negotiations
In the first 30 days we identified a potential buyer and after negotiations with the estate the package of business, building and real estate settled for an amount that was 12% higher than what the family authorized. Cash was in the estate within 180 days