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: How in-depth is the ‘due diligence’ process, and can I prepare for it? JT says: The short answer- yes, it’s an intrusive process, it needs to be. And yes, you can
Q: I was told selling my business will be an emotional roller-coaster. If true, how do I best navigate it? JT says: Having worked with 400+ restoration owners, yes, this is
Q: Recently I heard the term ‘Quality of Earnings’, why is it important when selling a restoration company? JT says: Every restoration owner should understand this- your numbers and accounting practices
Q: Please clarify the basic elements of a deal structure when selling a restoration business? JT says: Based on seller’s preferences, requirements, transaction size, financial trends and perceived risk (by buyer),
Q: When considering a sale, how ‘clean’ do my numbers have to be? JT says: The definition of ‘clean’ takes many forms, allow me to substitute ‘defensible’. Defensible means, ‘can we
Q: On a podcast you mentioned taking restoration co. owners through a Valuation & Analysis, what does that entail? JT says: Restoration contractors call me when they’re thinking of selling. They
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
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