Are you a business owner that’s ready to retire?
Read on.
You’ve spent years, decades, maybe your entire working career building your business. You’ve spent countless hours and sleepless nights, blood, sweat and tears to build something worthy of your pride.
But now you’re stuck.
Maybe you’d thought you’d be out by now. Maybe you hoped that one of your kids would be interested in taking over, but we all know how that goes.
Maybe market conditions have changed so drastically and suddenly that what once looked like a clear exit path is now hard to discern, or no longer even exists.
You’d like to retire, but you don’t want your business to die and you can’t imagine it surviving without you. And you don’t want to leave all that equity, all that blood, sweat and tears on the table. Just shutting things down feels like you’re leaving a huge amount of value on the table.
You have employees, colleagues, customers, suppliers that all depend on you, and you don’t want to let them down.
What if there were a way out? What if your business could survive, maybe even thrive without your involvement? What if you could provide job security for your team and still get the payout you once imagined from a sale, or even more?
Enter Traincar Holdings…
At Traincar we get it. We’re a team of entrepreneurs and business executives that have put in our time in the trenches. We know how difficult it is to build something from nothing, the fear and stress of the difficult moments, and the joy and the pride when you finally experience the fruits of your labor.
We believe that we’ve devised a unique solution to the challenges described above.
We recognize that many businesses are perfectly viable and cash flowing but for a constellation of reasons aren’t really suitable to sell; frankly if there were an easy or clear path to a big payday, you probably would have taken it by now.
Here’s what we propose: we will acquire your business for a better multiple on SDE than you could get if it were indeed sellable under current conditions. Local SMB’s typically sell at multiples of 2-3 times annual SDE. What if you could get 4x, 5x, 6x?
The only catch is that you would receive this payout from the business’ earnings over a fixed period of time on an annuity basis, with equity control of the company gradually phasing from your ownership to ours as the payments are completed. In a nutshell this is what’s referred to as seller financing.
What you get out of it: This a chance to exit a business you otherwise don’t see a way out of, without having to sell out to a competitor, close down shop or let any of your team go. You also get even more value than the business would be worth on the open market.
What we get out of it: We’re willing to overpay for a validated, stable business, and we’re not on the hook for a large capital outlay to make the acquisition. We also get the benefit of your knowledge transfer and the wealth of expertise and experience you’ve developed over the course of building your business.
Why should you take us seriously?
We bring to the table decades of management experience, from local SMBs to the c-suite of publicly traded tech companies, so we know a thing or two, but we also recognize that when it comes to your business and your industry, you are the expert.
Our goal is to combine your legacy of knowledge and industry expertise with our deep background in operations, sales, marketing and application of emerging technologies such as artificial intelligence.
How it works to sell your business to Traincar Holdings
Phase 1: Diligence
- We sit down with you to do a deep dive on your business, we want to understand:
- Financials
- Operations
- Marketing
- Sales
- Team
- Competitive landscape
- Etc
Phase 2: Offer
- If your business is a good fit for Traincar, we will make an offer based on a valuation of a multiple of SDE, to be paid in annuity over a fixed period of time.
- If the offer is agreeable, once executed, Traincar will assume 25% equity ownership.
- Over the next 12 months, Traincar will gradually gain additional equity ownership until we have 75% total equity ownership. You, as the former owner, will retain 25% equity ownership in perpetuity.
Phase 3: Integration
Owner Duties
- The day the transaction closes, our leadership team gets their hands dirty in understanding what you have been doing daily. Our goal is to facilitate a knowledge transfer from you to us until we know your business as well as you do. We want to understand everything that makes your company tick and understand which levers to pull.
- We gradually phase you out of current operations and phase ourselves in.
Team
- Your team stays in place- you’ve built a great team and we have no intention of getting rid of them.
- Our initial goal is to stabilize- it’s unlikely we’d make any significant changes to operations within at least the first couple of quarters post acquisition.
Strategy / Future Planning
- Once we’ve absorbed operations and the business has stabilized, we will begin to implement appropriate strategies from our proven playbook of business optimizations.
- We find that nearly every business (no matter how successful) is leaving money on the table, whether it’s in operational efficiencies, new marketing + sales channels, or applied technology + automation.
- Within our holdings we have a modular business unit outsourcing company, so we’re able to quickly scale on an ad hoc basis to meet business demands without adding significant new overhead costs.
- When ready we will install a dedicated CEO to run the company, and incorporate it into the managed portfolio of our established holdings.
Ready to retire comfortably?
In 20 minutes, you’ll see how our model is the best for your goals. Let us show you can get more financial benefit from your company versus a straight sale.