I had two clients come on board that were looking for a real ‘diamond in the rough’ business. Both cash buyers were looking to gamble on buying a failing business using their skills to turn it around and then ultimately selling it for a very high return on their investments.
Think about this mindset for a minute. A franchise owner invested upwards of a half million dollars in the buildout, hired and trained all the employees, invested in marketing and growth only to find in the first few years that for one reason or another, they couldn’t sustain the business into profitability and they need to get out fast. So what’s the answer?
Well rather than terminate or relinquish the business to the franchisor, an owner can often come out with their shirt on by selling to a buyer with a higher risk tolerance. Advantage to the Seller? They get out with more than they would by relinquishing the business.
Advantage to the Buyer? They have a much lower investment with a higher return for the risk they are willing to take. If you are a franchise owner, and your business is struggling there are things you can do. Zarian Firm offers clients a service that will analyze the business; its factors of
distinction; and strip the numbers to develop a current value and a projected value
based on several scenarios.
We’ve found that this is really empowering for our clients who can now decide to sell -
and we will look for buyers that see the potential and want to invest and turn it around, OR they can engage in the plan we create to optimize the business for a later sale…
Connect with me if you want to learn more about this program: Holly@ZarianFirm.com