Buying. Selling. Mergers. Acquisitions. These are the #1 trend in today’s
restoration industry, and that trend isn’t likely to change anytime soon.
Have a question about M&A? This monthly column is here to answer those questions and help you make informed decisions about your business.
JT Kraai has more than 20 years of experience as a broker and consultant, and has brokered hundreds of deals in the restoration industry. He is here to answer YOUR questions!
Email him at jt@exitstrategies360.com
Serving exceptional restoration clients nationally.
Q: I received an inquiry to buy my restoration business, should I entertain it? JT says: With continued industry activity, fair question. Responding (out of curiosity) gets you one buyer, with
Q: You’ve mentioned a sales ‘transaction’ vs. ‘transition’, what’s the difference? JT says: Transaction: This is the business side of any sale- NDA’s, LOI’s & deal terms, negotiations, non-competes, working
Q: How do I negotiate effectively when selling my restoration company? JT says: Please know the best negotiations start well before buyers are ever approached. It’s most effective to first get
Q: What are the 2 most common pieces of advice for those who are within a few years of selling? JT says: First, I’ve heard this phrase well over 100 times the
Q: You just sold a $12M business for a friend of mine, why would he stay and work for 2 more years after selling? JT says: Great question, one that is
Q: What are the 2-3 most common hurdles when selling a restoration business? JT says: Restoration businesses vary widely in size, services, accounting methods, cultures, owner involvement and more. Considering this
Q: As I think about selling, are there key numbers I should focus on? JT says: Absolutely. Here are 4 numbers most consider essential for the best decisions: Adjusted EBITDA:
Q: I’m thinking about an exit plan, what should it include? JT says: A basic exit plan should not be complicated. Key answers should include: What is my business worth?
Q: How critical are industry-specific advisors as I develop my ‘exit plan’? JT says: Great question. Many advisors will say they’re able to assist. However, as you know, the restoration
Q: All I’m hearing lately is M&A activity and multiples. What else should I be thinking about while planning my exit? JT says: A few key questions will offer some
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