Cash flow is more important now than ever
Our experience led Kentucky Business Broker to implement a strategy that focuses on listing cash flow positive businesses.
Our previous experiences led us to realize that a business that is cash flow negative or cash flow breakeven is what we have coined as “a story sale”. Meaning, we have to tell potential buyers the “story” as to why the business is not cash flow positive. To sell a business that is cash flow restricted, the buyer needs to be a cash buyer and also needs to “buy in” to the story as to why the cashflow isn’t there.
We had many business buyers that we brought to the table many moons ago that were close to buying these types of business, but we NEVER transacted any of these opportunities.
With the tightening of the credit markets and the economy struggling, there has never been a time where cashflow has been as important as now.
At the end of the day, the buyer just couldn’t pull the trigger based on “the story”. If you currently own such a business, feel free to contact us. We have advised many business owners on a 1-3 year gameplan for turning around the cashflow of their business so that they can come back to us once things turn cashflow positive. We encourage you to contact us with any questions you may have about such a gameplan.
The tightening of credit has really made us happy that we moved to listing only cashflow positive business. Banks and cash buyers alike are only looking at these types of businesses. Neither wants to own a business that doesn’t have the cashflow to cover the debt. By KBB implementing systems to only list cashflow positive businesses, we have attracted banks and business buyers that look for such opportunities. Both of these, banks and buyers, are loving the current state of the economy. Banks and buyers have access to credit for solid deals and that is what we represent, solid businesses. If you have or know of such an opportunity, please contact us today.