Because of my experience owning a business, I don’t shy away from complex or messy deals. Family-owned businesses are often examples of both because relationships become entangled with business decisions. Emotions run high.

What makes a messy business?

I recently sold a company where the business owner died, the family sued each other, they were all buried in debt, and nobody got along. It was a mess. Yet, I found a way to get it sold.

There’s another example of a master distiller running out of cash. He had product, but no means to get it distributed. I’m helping him out now by facilitating a relationship that fixes his problem. 

The truth is, most businesses are messy in one way or another. It might be due to sloppy accounting, understaffing, customer concentration, or excessive dependence on the owner. The reasons are too numerous to list here, but if you have a messy business, you probably know it, and don’t worry – you’re in good company.

Unfortunately, the industry faces a problem: when it’s going through a difficult time, many business brokers (especially those who don’t focus on the spirits industry) are either ill-equipped or not interested in helping a business owner reach the closing table.

You can’t blame them really. Brokers normally get paid a percentage of the deal at the closing table. If there is no transaction, there is no payday for the broker. If the deal is too complicated, it’s easy for general brokers to not take the listing and pour their efforts into a “less” messy deal.

That’s where I’m told I’m different. Complicated deals don’t scare me. Maybe it’s my passion for the industry, or my relationships with hundreds of distillers and those who service them. I can see synergies that they may not be able to see for themselves.

The truth is, it’s a lot of fun, and I enjoy helping people. 

My advice is, whatever broker you work with, be up front about all your warts and shortcomings. Experienced brokers have seen it all. Keeping a secret is rarely a good thing in selling a business, and if it gets discovered rather than being disclosed, you will lose all credibility. The buyer will wonder what else you are hiding. It can kill a deal.

It’s better to have that honest (and admittedly difficult) conversation with your broker so you can, together, come up with the appropriate response to the questions the buyer will inevitably have.

Running a business isn’t for the weak. Almost everyone has some battle scars, but it doesn’t mean you don’t have a sellable business.

If I can help you determine the value of your business, contact me here.