Lawrence, KS: After 2020 proved to be an extraordinarily challenging year, some business owners are eager to make a change. For those who were considering retirement pre-pandemic, 2020 gave them a reason to speed up the timeline. For others, having to adapt to shutdowns and the rise of e-commerce resulted in burnout, forcing them to question whether they want to risk going through it all over again. After a year of job uncertainty, they are tempted by an existing business’ already established revenue stream, client base and reputation.
McGrew Real Estate’s commercial division, Business Brokers, LLC is helping people find the best answer as they assist clients buy or sell businesses in northeast Kansas. Headed up by Tami Norris, an agent with McGrew, the company serves as agent and broker to perform commercial transactions for businesses in all industries.
“When you go through what we did this last year, people start looking at how they can control their own future,” Norris explains. “You start to see more people learn towards entrepreneurship.”
A common misconception is that a business must be failing when it transfers ownership. The reality is that over 500,000 businesses change hands each year for various reasons unrelated to finances. To facilitate a sale, Norris begins by assessing the ins and outs of the business, such as its financial standing, potential list price, and marketability.
“It really is the business owner giving me a crash course on what all goes into their business,” Norris says. “I work closely with the owner because obviously they know the business better than anybody.”
For Buyers, Norris is there to facilitate the process. She starts by learning what type of business and location the buyer seeks. She then recommends that the buyer sit down with a lender to work out potential financing options and put together a business plan so there is realistic understanding of anticipated cash flow, working capital that will be needed, and anticipated debt obligations. Once a viable option is found, the business and financials are evaluated, then data is presented to the buyer.
Ideally, Norris would like to start working with a business owner years before they are ready to transition out of the business. Sellers need to understand how their financials, employee structure, market share, and other factors will affect their list price. It’s important to have time prior to listing for adjustments to help the marketability of the business. According to Norris, early planning is not always an option.
As the chapter unfolds for this new economic era, both buyers and sellers have worthy reasons to take control of their futures. Tech-savvy professionals are ready to be their own boss and an actual retirement is desired by many. While the thought is there, many do not know where to start as well as how to make the process as smooth as possible for both sides of the transaction. This need is what brought Business Brokers, LLC to fruition with Norris supporting buyers and sellers in western Kansas many years ago. After a move to Lawrence she quickly saw the need in this area as well and the pandemic has only made that more vital than ever.
For more information about Business Brokers, LLC, or to contact Tami Norris for an interview, contact tami@businessbrokersllc.net or 785-432-3545.
McGrew Real Estate, Inc. was established in 1951 by Conrad and Viola McGrew and is one of only two remaining major real estate firms that is both locally owned and independent (not part of a national franchise.) We offer residential and commercial real estate services with a team that knows our community and are passionate about providing the highest level of support to all. If you are ready to talk real estate, Ask McGrew. www.askmcgrew.com
