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American Business Brokers & Advisors Founder & President MERGERS & ACQUISITIONS BUSINESS VALUATIONS
NOVEMBER 2023
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Recession Smession!
Most People Are Too Close to the Forest to See the Trees
If you listen to the news or watch it on television, there is no doubt that all you are hearing is either how bad the economy is or is about to be. Part of the reason for this is because bad news or the idea of bad news sells. But for the industry I work in, which is helping business owners learn the value of their businesses and guiding them through the process of turning years of hard work into a more liquid cash position by selling their business, the idea of a recession doesn’t come into play. Not once have I heard a business owner I am helping with a sale say, “I am selling my business because of a forthcoming recession” or tell me it’s because we are in a recession. Quite frankly, the opposite is true. There isn’t a week that goes by when I am not contacted by someone wanting to buy a business and, in my case, a convenience store or a chain of convenience stores. The biggest problem my buyers have is finding something to purchase. After I recently closed on the sale of some convenience stores, I got a phone call from the buyer of these stores. He was happy I had presented the convenience stores he just purchased, but the main reason for his call was to share a problem. When I asked about his problem, he said he had plenty of money on hand and access to more, but he couldn’t find anything to purchase. He wanted me to find more stores for sale. Contrary to what you may think, this situation is common. Most of us who started with nothing can remember wanting to buy a business, but we
continue to live as a “would have, should have” individual, always aggravated and talking about the deal that got away, but you will justify it by saying “the timing wasn’t right.” I have been very fortunate to have accumulated a large database of individuals and companies I can call when I find what I believe to be a good fit for my clients who want to acquire certain convenience stores. Maybe that is why, regardless of the economic situation, we sell 90% of the businesses we aim to sell at American Business Brokers & Advisors. Think of American Business Brokers & Advisors as a new book ready to be released on Amazon. Amazon offers the book as a pre-order, and when the book is published, they send it to you. This is sort like what we do at American Business Brokers & Advisors. We talk to a lot of people and put their names on the pre-order list. When we get a business we think would interest a particular client, we give them a call and Voilà! A buyer gets to buy, and a seller gets to sell and go do something they longed to do other than operate their business. If you have a desire to own some convenience stores in a certain area and would like to pre-order the type of venture you are seeking, send us an email at Terry@TerryMonroe.com , and you will be placed on the list. Don’t be surprised when you get a call letting you know the business you pre-ordered has come in. –Terry Monroe
had no idea where in the world we would find the money. This is what we call the “Little Minds Do Little Things” mentality, which is extremely hard for some people to break out of. Then there is the mentality of knowing that if I can find a good deal to buy, I will find the money — which is the right mindset for a successful businessperson. What a lot of people don’t realize is that good deals or a good business to buy is not an easy thing to find. I have told a lot of people this, and I remind them that they can’t go down to Walmart and just pick up a good business to buy off the shelf. Instead, they need to work to find good businesses, and when they do, they can’t hem and haw around and think about it and play the “What if?” game. Instead, take action. Back to the idea of being in a recession or going into one because the interest rates are higher now than a year or two ago. Or maybe the political situation of the country is not to your liking. So, what if that’s the case? Tomorrow, the world will still be turning and life will go on. And if you are not prepared to execute on a good business purchase, you will
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When Fame Meets Inheritance:
ANNE HECHE’S LEGACY
a coma and passed away seven days later due to inhalation and thermal injuries as well as a sternum fracture. Unfortunately for Heche’s family, she passed without a will in place, which complicated matters significantly. Heche’s eldest son, Homer Heche Laffoon, filed a petition to be appointed administrator of her estate not long after her death. James Tupper, Heche’s
children.” Heche sent the email in 2011 when the couple was still together.
Unfortunately, the email was not legally binding, and a judge gave complete control of Heche’s estate to her son, Homer. The estate consisted of $110,000 in bank funds and uncashed checks as well as an estimated $400,000 in other assets. However, people continued to target Heche’s estate with massive lawsuits. In November 2022, the woman renting the home that Heche crashed into sued the estate for at least $2 million, then the homeowners filed their own lawsuit. A month later, a credit card company sued the estate for $36,000 in credit card debt. Like many other celebrity estate planning cases that make the news, this entire situation could have been avoided if Heche had created an estate plan.
ex-partner and father to her second child, argued that he could reject the petition as he believed Homer was not suitable due to his age and lack of income. Furthermore, Tupper provided an email written by Heche that left the estate in his hands. It read, “FYI In case I die tomorrow and anyone asks. My wishes are that all of my assets go to the control of Mr. James Tupper to be used to raise my children and then given to the
News of Anne Heche’s death stunned the entertainment world in August 2022. The 53-year-old actress who starred in “Donnie Brasco’’ and “Six Days Seven Nights’’ was driving her MINI Clubman when she crashed into a Los Angeles home. A fire broke out from the accident, and firefighters were unable to remove the car — or Heche — for over 45 minutes. Following the accident, Heche fell into
A BAD DISEASE AND LEARNING TO STAY IN YOUR LANE
There are many diseases in the world but none like the one I once had. What I used to have was a disease diagnosed as “dealitis,” which meant I could not pass up a deal. If no one else would buy into a deal that I thought was a good deal, then I bought it. (You will notice that “dealitis” and “dumb” both start with the letter D.) Because I had dealitis, I owned and operated between 6–7 businesses at one time. I couldn’t find a deal I didn’t like. I ended up owning multiple restaurants, manufacturing companies, a television station, a radio station, a motel, a convenience store, several real estate companies, a few commercial development companies, and dozens of retail outlets. I even owned a ladies’ dress shop. That was how bad I had the disease. Dealitis consists of the inability to focus on one business; instead, you are constantly chasing another deal to add to your portfolio of businesses you already own and operate.
Thankfully, through the therapy of losing money because I wasn’t paying attention to my core business, I was able to cure myself of dealitis and focus on my core business of owning and operating American Business Brokers & Advisors. But I have a confession to make. In August of this year, my team and I were invited to the first annual Quick Service Restaurant (QSR) Magazine Conference in Atlanta to meet and present American Business Brokers & Advisors to the QSR people. Since this was the first conference, it was a huge success with sellout attendance. There were more people than there was space for the people. I noticed a lot of new restaurant concepts I hadn’t heard before. Being the curious person that I am, I began to ask questions about some of these new concepts. Having been in the restaurant business and owning more than 30-plus restaurants in an earlier life, I wasn’t paying attention and fell off the wagon. Yes, just like an alcoholic, I
found myself diving into this one restaurant concept I thought was a winner, and I could take it to the moon. I was asking them questions about the store layout, the annual average gross income, cost of goods, cost of labor, site selection, and how much it costs to buy the franchise and start up the concept. I even had the location picked out. Dealitis had reared its ugly head, and I was in deep. Fortunately, one of my colleagues at ABBA recognized I was getting blurry-eyed and infatuated with this new restaurant concept and pulled me aside, gave me a good shaking, looked me in the eye and said, “Wake up! Stay in your lane and continue to do what you do best — helping business owners prepare their businesses for sale and walking them through the process of selling their business. STAY IN YOUR LANE!” What a profound thing to say to me or someone who may experience the effect of dealitis and the thought of venturing off into a business they know nothing about.
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SUDOKU (SOLUTION ON PG. 4) Take a Break!
"HIDDEN WEALTH" The Secret to Getting Top Dollar for Your Business
► What is the value of what you are selling? ► Want to make sure the sale is confidential? ► Want to sell everything together & fast? Terry has sold over 857 businesses. His book tells you what to do and more importantly what NOT to do when selling one's business. GET YOUR FREE COPY TODAY! Email Terry@TerryMonroe.com Put FREE COPY in the subject line for your free copy of "Hidden Wealth", a ForbesBooks publication.
TERRY’S QUOTE OF THE DAY “Someone once said that politics is the second- oldest profession. I’m beginning to think it bears resemblance to the first.” –Ronald Reagan “If you’re listening to a rock star [or a celebrity] in order to get your information on who to vote for, you are a bigger moron than they are.” –Alice Cooper
WORD SEARCH
I share this story because the disease of dealitis is not exclusive to me. Over the years, I have met a lot of good convenience store operators who do what I have done and try to get into something they know nothing about, and it doesn’t work out. They end up losing money, and it’s a big distraction from their core business.
I once heard that the secret to success is to find out what is working for you and do more of it — and find out what is not working for you and do less of it. Good advice.
So, the next time you see some new bright and shiny business concept and think you should have it, please send me an email or call me, and like the buddy plan of Alcoholics Anonymous, I will talk you out of it.
BALLOT CORNUCOPIA CRANBERRY DISTRICTS
MAIZE PILGRIM POLITICS RAKING
SHOPPING STUFFING THANKSGIVING VETERAN
–Terry Monroe
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INSIDE 7824 Estero Blvd., 3rd Floor Fort Myers Beach, FL 33931 1 2 At ABBA, Recession Isn’t a Factor Estate Planning Lessons From Anne Heche’s Untimely Death
Sudoku Solution
‘Dealitis’ Raises Its Ugly Head Again
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Thinking About Selling Your Business in 2023?
Grow Your Business With These 3 Rules
Master These 3 Simple (But Critical) Rules WANT TO GROW YOUR BUSINESS?
FOCUS ON REVENUE GENERATION INSTEAD OF BUSINESS COSTS. It costs money to run a business, but you should not focus solely on money leaving your bank account. Start building plans to create revenue that covers your business’s expenses. Part of the reason you started your business was to make money, so start making money! Focus on creating sales and operation processes that align with your company values and promote more business. Doing so will offset the costs of doing business while bringing in more revenue that can be used to grow your company. THERE ARE NO OTHER RULES! According to Tracy, no other secret rule will bring success to your business. If you put quality first and focus on revenue generation, you can grow a profitable company.
As a business owner, you’ve likely spent a lot of time working to improve your business. You’ve read business books and attended seminars to enhance your skills. Occasionally, you learn something revolutionary that allows you to implement practices that make your company more profitable.
strategy, creativity, and more. If you haven’t read anything by Tracy or heard him speak, you’re missing out on valuable business advice. Tracy recently unveiled his three rules for business success. By following these rules in your own business, you can reach new heights and accomplish your goals. QUALITY IS MORE IMPORTANT THAN COST. The big question: Do you cut costs and offer a lower-quality product, or do you deliver a high-quality product that’s more expensive? Tracy recommends providing a higher-quality product every time. If you make a cheap product and sell it for a low price, the customer will be happy at first to get a great deal, but their joy will fade as the product starts to wear down. This is how customers look at your business.
Brian Tracy, CEO of Brian Tracy International, is no stranger to offering revolutionary business advice. He founded his company nearly 40 years ago, which provides counseling on leadership,
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