FOR IMMEDIATE RELEASE

Dallas, Texas – VR Huntington Business Group of Dallas assisted in the successful sale of Sweet Land Tree Farm last week from Wintters Realty, LLC to HHH Nurseries, LLC.

Todd Wintters, president of Wintters Realty, LLC, acquired the farm three years ago from the founder. Sweet Land became a division of his engineering company, but as his core business evolved, it became a priority to move away from the tree business and find a suitable buyer for the farm.

“When it came time to sell the farm, I had two routes to consider,” Wintters said. “I could list the property with a real estate broker or try using a professional business intermediary. In the end, choosing VR Huntington was the best decision I could have made. The farm benefitted greatly from being marketed as an operating business rather than just a piece of property.”

HHH Nurseries, LLC was formed by brothers Blake and Jason Hearnsberger, along with their father, Roy. The group has real estate interests in other parts of the state and Sweet Land provided them an opportunity to expand their operation into East Texas as well as into the wholesale tree business.

“Having acquired other agricultural properties previously, our objective was to expand those holdings with an income-producing opportunity,” said older brother Jason. “This business was a bit further from the Houston area than we were looking to go, but based on the quality of the operation and the amount of detail readily provided by VR Huntington, Sweet Land became a viable option for us.”

Wintters gives VR Huntington credit – not only for generating significant interest in his business and producing multiple offers but also for the expertise they provided in evaluating each buyer individually.

“VR produced four offers on my business,” Wintters said. “The buyers were all qualified and motivated to make the purchase, which puts a lot of pressure on the owner to make sure and choose the right person. With VR’s guidance I selected an offer, and it turned out to be the best buyer I could have hoped for.”

Sweet Land Tree Farm (www.sweetlandtreefarm.com) offers wholesale customers access to a variety of Texas’ most popular hardwood landscape trees, including red oak, live oak, Chinese pistachio, pond cypress, cedar elm, lacebark elm and many others. The farm sits on 20 acres of prime property in Grand Saline, Texas. Contact Sweet Land at 903.962.3986.

The sale was facilitated by Jeremy Furtick, Senior Business Intermediary, with VR Huntington Business Group Inc. a VR Business Sales firm in Dallas.

The VR network was established in 1979 and is the oldest professional business brokerage in the nation with more than 125 offices and 800 agents worldwide. VR Huntington Business Group (www.vrbigd.com) is based in Dallas and has finished the last four years as one of the top VR offices in the world. VR Huntington specializes in assisting the owners of privately-held companies to value, market and sell their businesses, as well as representing buyers interested in professional assistance in their business searches.

You’ve decided to buy a business but how do you know that the business you’ve chosen is the right one for you? Here are 7 questions every buyer should ask when they’re looking to buy a business.

1. Are The Numbers Provable?

One of the more frequent comments we get from buyers is that there are too many businesses where the seller cannot prove the numbers. So the strategy here is simple – if the seller cannot prove it, buyers will not pay for it, so only represent what can be documented. Additionally, if the seller has unreported income, do not expect to get paid for it. The benefit has already been realized.

The ability to provide buyers with detailed documentation to validate the financials is vital to a successful transaction. If the books and records are in disarray the seller should take time to organize them before taking the business to market.

2. Can It Be Financed?

Cash sales are rare. Serious buyers, however, do understand they have to put down a substantial down payment, but buyers want to utilize some financial leverage. There are three primary options for financing:

• Traditional lenders
• SBA loan program
• Seller financing

Traditional lenders rarely provide funds for acquisitions unless the loans are fully collateralized.

SBA type programs are growing in popularity. VR Huntington Business Group has established relationships with several SBA lenders and will pre-qualify the Seller’s business to determine the amount a qualified buyer may borrow. This greatly enhances the marketability of a business.

Seller financing is quite common and is addressed extensively amongst the various articles that have been posted on this site. Please read these articles as they offer valuable insight to this ever more popular means of securing financing.

3. What Does The Future Hold?


A business will almost always be sold that is valued upon past financial results, but the decision to buy will be based upon the future potential of the business. While some buyers consider growth to be their main criteria, at the very least the majority of buyers want to know that history will repeat itself. In other words, is the business sustainable and are there any issues that could impact it negatively after they buy. A realistic picture to the buyer should be presented, but at the same time the seller will want to present the business in a compelling fashion that demonstrates that all the parts are in place for them to takeover and continue to be successful.

4. Will Employees Remain?


This is especially important in businesses that may have some key employees. The buyer will more than likely want to meet them prior to closing. The seller should consider structuring the milestones of the deal to allow for the meeting.

5. If The Business Relies on Location Will the Lease Be Assigned?


Landlords can sometimes derail the sale. Consider meeting with the landlord to determine what issues will have to be addressed. A SBA loan will require that the business have a home for the term of the loan. Therefore, renewal options should be in place. To ensure that this doesn’t kill the sale, buyers should find out if their business broker is licensed to handle real estate transaction. For example, VR Huntington Business Group requires all staff members to have a real estate license to handle just such issues. In addition, we also have a Real Estate broker on staff to assist with the complexities of leases and landlords. If the seller owns the real estate and wishes to include it in the sale of the business then we will likewise guide you through this process.

6. Are there Any Hidden Problems?


The best strategy is to be upfront with prospects about any potential issues so that they can be dealt with early in order to maintain credibility and trust. When the seller wants to sell and the buyer wants to buy and the parties trust each other, it is almost impossible to prevent a successful transaction.

7. Is The Business Right For Me?


Ultimately, this is the question that is the make or break question. The buyer must make this decision, but the seller and his advisors should be of some assistance. VR Huntington will soon be releasing a proprietary program designed to answer this question. This program is in the beta stage now, but is called “Business Match Indicator”. The Business Match Indicator helps the buyer and seller to better understand the ideal profile and skill set of the perfect buyer for the business. This process helps the business intermediary conduct the pre-qualification screening of prospective purchasers.

Mike Derrick is a Senior Business Intermediary with VR Huntington Business Group Inc. a VR Business Sales firm in Dallas (www.vrbigd.com).

VR Huntington Business Group, located in the heart of the DFW Metroplex, serves the entire Dallas-Fort Worth Metro area as well as North Texas. The company specializes in Business Brokerage, Mergers & Acquisitions, Business Valuation and Consulting services focusing on small businesses and mid-market companies.

DALLAS, Tex. – CKS Transport, Inc., a FedEx Ground line haul contractor domiciled out of the Hutchins terminal near Dallas, was acquired by The Perham Group, Inc. of Arizona last week with the assistance of VR Huntington Business Group in Dallas.

Prior to acquiring this FedEx Ground operation in 2007, CKS president Colin St. Clair actually considered acquiring a different business with VR Huntington. Although he went a different direction with his decision, he always remembered the way VR Huntington Business Group presented businesses for sale and the way he was treated as a buyer. So it was only natural when it came time to sell CKS that he called VR.

“As a buyer, I met with several Dallas area business brokers looking for purchase opportunities,” he said. “Not one organization provided the level of professionalism, knowledge and access to data that VR Huntington did. As a seller, I wanted to make sure my business had those same advantages, so listing with VR was an easy decision.”

Bob Perham, president of The Perham Group, Inc., was actively searching for a suitable acquisition opportunity in the FedEx Ground system. He researched dozens of opportunities around the country, but in the end no available business fit his criteria as well or was presented as effectively to him as CKS.

“When I started researching FedEx listings to acquire, I discovered several that appeared to be what I might be looking for, but I was discouraged by the lack of response and information I was able to get on these operations, “ Perham said. “At the end of the day, VR Huntington was the one organization what was able to deliver the quality and depth of detail I needed to actually review the business and ultimately make an offer.”

VR Huntington not only assisted St. Clair in the marketing of his business and the qualifying of potential purchasers, but they were also deeply involved in every detail of the sales process – from negotiating the purchase price and the asset purchase agreement, to coordinating closing and funding, VR Huntington was critical to this transaction being a success.

“There’s no question that without VR Huntington and my agent that this transaction would have never closed,” St. Clair said. “There were several occasions where the deal stalled and I thought we might have hit a dead-end, but my agent never got frustrated – he was always there with a new solution, and ultimately that’s what helped make the difference.”

VR was established in 1979 and is the oldest professional business brokerage in the nation with more than 125 offices and 800 agents worldwide. VR Huntington Business Group (www.vrbigd.com) is based in Dallas and has finished the last four years as one of the top VR offices in the world. VR Huntington Business Group specializes in assisting the owners of privately-held companies to value, market and sell their businesses, as well as representing buyers interested in professional assistance in their business searches.