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American Business Brokers & Advisors Founder & President MERGERS & ACQUISITIONS BUSINESS VALUATIONS
AUGUST 2024
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All My People Are Fat
In the low tone of his voice, he said to me, “All my people are fat!” Immediately, I was taken aback and didn’t know what to say. I had known the caller on the other end of the telephone for over 10 years and have a great relationship with him, but my call was to share information about some convenience stores that had become available in his marketplace and to see if he was interested in buying them. As the conversation proceeded, he said it again: “All my people are fat,” to which I asked, “What are you talking about?” He said he was saying his people were fat as a metaphor to describe the fact that all the key people in his company had lost their desire to grow the company and, instead, they were content where they were and where the company was at the present time. The individual I was talking with has been in the convenience store business for more than 40 years and built a highly successful business consisting of 42 stores that are excellent in both appearance and profitability (I know this because I have consulted with him for many years). He does not have a strong succession plan due to the fact there are no family members who have the desire or capability to continue the growth of the company and maintain the integrity of the business. The success of the company and the reason it has been so successful over the years is because my friend has been the driving force, and now he has reached the point where he still has the desire and drive to continue to grow despite the fact he is in his late 60s, but his key people who have helped him grow the company to this level of success have aged out and gotten tired and content.
What I have described to you is not an anomaly. In fact, it is more common than you would think. Generally, behind every successful business is someone who has the drive and ability to grow it into a successful chain of convenience stores. However, here is the problem. (I know you are supposed to say, here is the opportunity , but in my friend’s case, it is a problem.) The owner of the highly profitable 42 convenience stores has no succession plan. Even though having 42 stores is quite an accomplishment in today’s world, it is not considered a large chain of stores. Increasing the company from 42 stores to 60 or 80 stores is not possible due to the demographics of where the stores are located in the country. So, as I always like to say, for my 42-store guy, what is his upside? Does he begin the search to replace his aged-out management team who are excellent at what they do, or does he just continue doing what they have been doing for the next 10–15 years until my guy decides to quit or dies? Does he acquire more stores, but in another market, to continue the growth? (He tried that, but the existing management team didn’t have the desire to work that hard and vetoed the idea.) Does he sell out and take the money off the table he so rightfully deserves and create a family office? He could take the money, but he loves what he does. Has the business passed him by? (What I mean here is a lot of the time, an operator has grown the business to their capabilities, and for the business to grow anymore, you need a new CEO to replace yourself because you don’t have the know-how to go to the next level. This
is something I experienced when I built my business to 155 retail locations, and in reality, I probably reached my limits as a multi-store owner at around 40-50 stores, but I wasn’t smart enough to realize it and kept growing with diminishing returns until I had to replace myself with a real CEO). I share this story with you because I get these calls quite often to consult with clients who have the same problem as my friend with the 42 stores. Unfortunately, there is no cookie- cutter answer to what I have described. Each situation takes a lot of talking and thinking about what the owner-operator’s options are going forward to help them determine what is best for them and their families in the future. The only problem I have is that I hope I don’t age out before my clients do. If something I have described sounds familiar about where you are with your business, you need to know you are not alone. You always have options, and as someone from the outside looking in, I can help you. Reach out to me at Terry@TerryMonroe.com . I can assure you that after 25 years, I have not encountered a situation in which a solution has not been found. –Terry Monroe
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Brand Mascots That Stand the Test of Time Brand mascots can make a surprisingly deep cultural impression. Some, such as GEICO’s famous talking gecko, have become almost universally recognizable. Others, such as the M&M spokescandies, evoke a backlash that banishes them to oblivion. Those with warmth and personality tend to last because they spark pleasant emotions, according to a survey of 1,630 people by Crestline Promotions. nothing to dislike, is one reason he has served as the Quaker brand image for over a century. Most people say the Quaker Man was adopted because of the denomination’s values of integrity, honesty, purity, and strength. Today, he endures as a slimmed-down version of his former portly self, with a more genial smile.
Other mascots have been sidelined after colliding head-on with cultural trends. Ronald McDonald debuted in national TV ads in 1965, and Generation X grew up with him. By 2016, however, Ronald was under fire for persuading small children to eat unhealthy food. After reports of creepy clown sightings further darkened his image, McDonald’s benched him. Today, Ronald is mainly confined to promoting Ronald McDonald House Charities, the nonprofit that provides housing for families with seriously ill children. Other once-popular mascots have ended up on the ash heap. Aunt Jemima, the figure who adorned millions of boxes of pancake mix, was abandoned as a caricature from the era of slavery. The same fate befell Uncle Ben of Uncle Ben’s Rice. The company tried to salvage Uncle Ben by promoting him to chairman of the board, but they eventually deemed his image beyond repair.
The most enduring brand mascots, such as the iconic Betty Crocker, manage to evolve with the cultural zeitgeist. The mythical homemaker was invented in 1921 by the predecessor company to General Mills. In the Flapper Era, she became a radio personality, then evolved into a World War II-era heroine creating recipes for homemakers beset by food rationing. From the 1950s through the 1990s, she morphed from a friendly, curly-coiffed homemaker to a stylish Jackie Kennedy lookalike and then to an increasingly confident career woman. The 2022 publication of the 13th edition of Betty Crocker’s famous cookbook attests to her astonishing longevity.
Another enduring mascot, the Quaker Oats Man, originated in 1877. His pleasant visage, which leaves
A FUNNY STORY ABOUT SLEEP & TRUCKS & CONVENIENCE STORES
Here is a story that will make you think and laugh at the same time.
business and how he was so glad to be out of business, especially the trucking business. He said several years before he and I got together and began the process of selling his business, he had a truck driver who had a heart attack while driving his fuel truck, and he had a wreck. Fortunately, nobody but the driver was hurt, but the accident created a terrible situation for my friend, which included the clean-up process of fuel being spilled on the highway, the damage to his truck, and the time and aggravation he had experienced dealing with the insurance company. He said he never really got over this past accident, even though everything had been taken care of and settled by the time I arrived and began work on the process of selling the convenience stores, trucking, and wholesale fuel business. He said prior to working with me, he had purchased one of the Sleep Number mattresses you see advertised on television. You know, the ones that say they have technology inside the mattress, and it does a study on how you sleep and keeps track of this data for you so you can tell if you are getting a good night’s sleep or not. He said for the longest time, his number for sleep had been
in the low 50s, which is not considered a good night’s sleep. But then, shortly after he sold the business, his sleep number increased to 82 and has remained in the mid-80s, thereby showing he is getting a good night’s sleep. I couldn’t stop laughing because I have always told my clients how much better they would feel after they sold their businesses because they wouldn’t have to deal with the stress of the employees and issues that go along with running a business. Now, I had scientific proof! What a hoot. My client said he was shocked, too, and swore by what he told me. I share this story with you not to sell mattresses but to help make you think about what is keeping you up at night. It is possible I may be all wrong about the stress of the business, and instead, all you need is a new mattress. But what if I am right and it is the business? Maybe you should start with one of those Sleep Number mattresses as my friend did and check your sleep, and if you are tracking in the low 50s, then it may be time to give me a call.
I am very fortunate to work with some of the greatest people in the world, which is why I keep doing what I am doing. When you work with somebody for several years on helping them to prepare and eventually exit the business they have owned for many years, you get to know a lot about the person and create a lasting relationship. Because of the time we spend together, my clients and I become good friends and learn to trust each other and generally have the same interests. I have some clients who have been friends of mine for over 20 years due to our working together, and we still stay in touch with each other. While I was traveling a couple of months ago, I called one of my past clients and told him I was in the area and asked if he had some time to get together. He said yes because, since he had gotten out of the convenience store, trucking, and wholesale fuel business, he had plenty of time and to stop by his office.
–Terry Monroe
Of course, when we got together, we began talking about the details of the sale of his
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TERRY’S QUOTES OF THE DAY “Ability is what you are capable of doing. Motivation determines what you do. Attitude determines how well you do it.” –Lou Holtz “Keep away from those who try to belittle your ambitions. Small people always do that, but the really great make you believe that you, too, can become great.” –Mark Twain “Women always worry about the things that men forget; men always worry about the things
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women remember.” –Albert Einstein
BACKPACK BEES MELON MOON
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SCHOOL TWINS VACATION ZUCCHINI
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INSIDE 7824 Estero Blvd., 3rd Floor Fort Myers Beach, FL 33931 1 2 All My People Are Fat Brand Mascots in the Shifting Sands of Culture
Sudoku Solution
A Funny Story About Sleep & Trucks & Convenience Stores
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Terry’s New Book is Here!
Life Insurance Options to Consider
TERM WITH LIVING BENEFITS Similar to a standard term policy, this option allows the policyholders to access the death benefit while alive if they are diagnosed with a chronic, critical, or terminal illness. This accelerated benefit can cover medical expenses, allowing the policyholder to focus on recovering. WHOLE LIFE INSURANCE WITH LIVING BENEFITS This policy offers permanent insurance coverage and builds cash value over time. The cash value can be accessed for any purpose, making it a versatile financial tool. UNIVERSAL LIFE INSURANCE Universal Life Insurance policies offer the same permanent coverage as whole life but with greater flexibility. These policies can be adjusted to fit changing financial situations and typically offer higher interest rates through variable, regular, and indexed universal life insurance options. The growth is often tied to performance indices like the S&P 500, allowing for potentially higher returns. Policyholders can adjust their premium payments and access the accumulated cash value for various needs, such as retirement or education expenses. When you pass away, a licensed insurance agent can assist your beneficiary with the paperwork or work directly with the insurance company’s claim representative. Once the necessary documents are submitted, the beneficiary will receive the death benefit payout. As you consider various life insurance options, you can consult with insurance professionals to help determine which life insurance policy best suits your needs.
Securing the Future With Life Insurance Policies FLEX YOUR FINANCES
Sometimes, unexpected events can occur out of nowhere. This is why we encourage peace of mind through life insurance. In exchange for regular monthly premiums, you and an insurance company enter into a contract wherein they will financially cover an unexpected life event. For example, your family will be provided for if you pass unexpectedly. Here is an overview of different life insurance options that can protect your family. TERM POLICY This is a temporary policy that usually lasts for 30 years. If the insured person dies within this period, the family receives a payout to cover their mortgage, outstanding debts, and other expenses.
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