From Boardroom to Beans
Let's explore an inspiring client story of mine. Transforming a casual interest into a successful business acquisition venture. This story was set in the vibrant city of Austin, Texas, and involves the journey of a couple, Alex and Sam, who transitioned from corporate life to new successors, business ownership.
The Spark of Change
Alex, an accomplished corporate strategist in Austin, found himself reflecting on his career over the last year. His partner, Sam, posed a simple question about his daily grind, sparking a pivotal career shift. After an initial consultation, Alex and Sam embarked on a new adventure: owning an established specialty coffee roasting company.
From Corporate to Coffee Beans
Alex, at the age of 48, was a seasoned professional, having scaled the heights of corporate America. Yet, he yearned for something more fulfilling. The pandemic-induced remote corporate work life made him ponder, "What's next?"
A Casual Interest Becomes a Serious Endeavor
While exploring online business listings, Alex stumbled upon a listing for a 25-year-old coffee roasting company in Austin. Their interest piqued due to their love for coffee and the rich startup story of the business, originally founded by a couple passionate about sustainable coffee sourcing.
Established Bean Roaster Business: A Gem in the Rough
The bean roaster business in question, stood out for its historical IRS-tax return solid profit margins and expansive customer base. Unlike local cafes, this was a wholesale operation with potential for significant growth.
Building Trust and Ensuring Legacy
Alex and Sam spent time with the previous owners, ensuring a smooth transition. The original owners, keen on preserving their legacy, were selective about their buyer. For Alex and Sam, it was crucial to understand the business's ethos and maintain its essence.
Swift and Strategic Acquisition
Contrary to expectations of a lengthy sale process, Alex, Morgan and the sellers quickly agreed on a deal, with the business changing hands in just under a sixty days. The business acquisition bank loan project backed by the SBA, including working capital funded at $900,000. A leap of faith that paid off with an established business proving sufficient historical net income to support Alex and Morgan's loan project payment and immediate owner salaries.
Elevating the Business
With Alex's business acumen and Sam's creative flair, they brought new life to the established bean roasting business. Operational enhancements, like upgrading equipment and streamlining processes, led to a 20% growth in the first year. They're now exploring expansion beyond Texas.
Advice for Aspiring Business Owners
Alex advises, "Embrace the fear and go for it. Engage in an experienced business acquisition loan consultant to truly be on your side. Do thorough due diligence and align with the seller's vision for a seamless transition. These are the keys to transforming a dream into reality. The boldest step is often the first one."
Stay inspired,
-Deb Curtis
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