National Distributor of Aftermarket Automotive Parts in Central New England
Location
Business Broker
Situation
The owners of a third-generation family aftermarket auto parts distribution business sought to retire. As a national distributor of refurbished and refabricated parts including diesel engines, the business served a diverse client base such as hospitals, municipalities, golf courses, tree service companies and other small businesses. Orders via the phone and through their robust website fueled revenue for this business with a small, devoted staff.
The owner and long-time business partner were introduced to business broker Molly Hanson to help them sell the business and assist in transitioning to a new owner.
BayState Business Brokers’ Approach
Business Broker Molly Hanson worked with the sellers to prepare their business for sale. The business included real estate which the sellers wanted to lease to the buyer.
With a business valuation complete, Molly Hanson focused on marketing the business. The sellers chose an individual buyer who appreciated the great opportunity to scale the business and take it to the next level including modernizing the business through automation. He offered a premium to purchase the real estate instead of leasing.
With an initial deal agreed to, Molly Hanson scheduled weekly Zoom meetings with all parties. Molly led the weekly meetings, keeping everyone informed as the two parties worked to move from an initial agreement, through due diligence and a physical inventory count, site visits, purchase agreement negotiations and ultimately to close. The attorneys for both parties were trusted advisors for their clients and worked well together to facilitate progress on the terms of the deal.
While the buyer had the financial backing for a cash deal, the buyer sought to finance the deal. While financing had been secured, when it was time to go to underwriting, his bank was failing. Fortunately, the buyer had other banking relationships and was able to successfully pivot to secure financing through another bank.
This deal took many twists and turns, but Molly remained focused on achieving the sellers’ goals.
Results
The timeline of the deal was delayed due to bringing in an inventory specialist to complete the valuation of the physical inventory and for the buyer to secure financing through a second bank. The final deal was a renegotiated agreement for the business as sales had declined, but a premium was offered for the associated real estate. The sellers assisted in the transition of the business and their loyal staff are employed with the new owner. Molly’s ongoing communication with the sell-side, buy-side and attorneys facilitated a completed sale to a committed and thoughtful buyer.
What Our Clients Say
Molly Hanson is the professional you would look for in selling a business. She is smart, insightful and very knowledgeable. Her calm demeanor during negotiations when things could easily have gone off the tracks was remarkable and helped to bring the sale of our business to a close. I highly recommend BayState Business Brokers and Molly to anyone looking for a professional firm to sell their business.
Seller
