Client Background
The owner of a small marina and boat rental business was preparing for retirement and wanted to sell the business at the highest possible value while ensuring a smooth transition for the new owner. The marina included boat and pontoon rentals, fuel sales, a retail shop, and dock services, making the valuation and transition process complex. The client hired Development Theory to help with an exit plan for a marina.
The Challenge
Unstructured Financial Records: Some transactions were recorded manually, making it difficult to present clear financials to buyers.
Seasonal Revenue Dependence: The business had high summer revenue but limited off-season earnings.
Uncertain Business Valuation: The owner did not know the true value of the marina and needed guidance to maximize the sale price.
Buyers Needed a Turnkey Operation: Potential buyers required a structured transition plan to operate the marina successfully.
Our Approach
Valuation & Financial Review: Conducted a business valuation using asset-based and cash flow approaches.
Profitability & Cost Analysis: Identified opportunities to increase profit margins before the sale.
Strategic Exit Plan: Developed a 3-year roadmap to maximize business value and prepare for sale.
Operational Documentation: Created standard operating procedures (SOPs) for the new owner.
Buyer Negotiation Support: Assisted in buyer selection and deal structuring.
The Solution
Provided a valuation report justifying the asking price.
Implemented cost-cutting and pricing strategies, increasing profitability by 10%.
Created a detailed transition package, making the business more attractive to buyers.
Guided the owner through negotiations, securing an offer 15% above initial expectations.
Results & Impact
Business sold for 15% higher than expected, thanks to value-boosting strategies.
Smooth transition ensured, minimizing disruption for customers and staff.
New owner retained 95% of existing customers, ensuring long-term success.
Retiring owner successfully exited with a comfortable financial cushion.
Client Feedback
"I thought selling my business would be overwhelming, but the structured exit plan made everything clear and stress-free. I got more than I expected for the sale and can now enjoy retirement!"
Development Theory Can Help Business Owners Like You
Looking to retire one day like this business owner? Our Exit Planning service provides you with an estimate of your business's current value and insights on how to leverage that value to retire. Don't miss out on the opportunity to plan for your future.
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