Bockus Consulting

I find myself living in two worlds. One world is busy, deal-making, scorekeeping, booms, and busts. That world always perishes and never satisfies. The other world is where my eyes and heart have an eternal perspective. That world focuses on service, not selfishness, and I understand the long-term consequences of my choices. Recently the bell of life toll. Fortunately, it's not the end but a wake-up call. I am on a journey to improve from the inside out, to know who I ...am. Here's a toast to all those who helped me along my journey and handed me a brightly burning torch. Thank you! If you want to talk about how my company can help you buy or sell businesses in Oklahoma, please click the calendar link. I will be back to talking about business acquisitions SOON! https://calendly.com/hank-16/intro-call

How long should it take to count your business inventory? I ask because I use this question when first talking to businesses owners with a heavy inventory. Their answer, or lack thereof, tells me if they have systems, checklists, playbooks, task lists, or location codes for their inventory. How long has it been since you have counted EVERY sellable item in your inventory? If the answer is six months or longer it has probably been too long.... There was once a business that showed $2,000,000 in inventory, and they believed it was accurate. Unfortunately, there was a unit of measure issue on an item bought in bulk but sold in pieces where it was multiplied at cost 1,000 times more than the actual cost equaling to be around $250,000. Did this affect the overall purchase price when discovered by the buyers? Yes. If you are a business that relies heavily upon inventory, here are a few things to note: Take a thorough and accurate list and correct your books. Donate or discard obsolete inventory would you buy it? Identify excess inventory and figure a way to liquidate. Move to a just-in-time ordering system. To talk to me about buying and selling businesses in Oklahoma click the calendar link below: https://calendly.com/hank-16/intro-call

Why No One Wants to Buy Your Business . . . Roughly 10,000 baby boomers turn 65 years old every day in the US, potentially creating a massive exit from business ownership to retirement like never before seen. The most probable buyer of these businesses would be millennials. Why aren’t millennials lining up to buy your business? It’s because they’re entitled and lazy. No.... What is the perception of your industry? Is your business something a millennial can see themselves doing every day? Beyond the money is there potential to grow and make a difference in the lives of customers, stakeholders, and employees? I came from the lumber industry, where we notoriously struggled to recruit young talent into this career field. It looked like an older man’s business from the outside; perception. If you are a baby boomer business owner, what are you doing to remain relevant to attract the eyes of millennial buyers? Would you please share a comment? Like it or not, the ones that survive adapt to the changing times. To talk to me about buying and selling businesses in Oklahoma click the calendar link below: https://calendly.com/hank-16/intro-call

Do the math yourself for a business valuation! In valuing a company, the appraiser will always follow the same process using the Cost Approach, Market Approach, and Income Approach. Within each of the three approaches, there are various methods. Here are some quick definitions. ASSET APPROACH Tangible asset value is typically used for companies where the assets are the primary driver of value and are worth more than the cash flow they generate. This includes the market v...alue of inventory, furniture, fixtures, machinery, and vehicles. No multiples are applied. The best place to start is with a depreciation schedule. MARKET APPROACH Comparable transaction method is based on transactions of other similar privately help businesses as a comparison basis for value the subject company. This method uses industry rules of thumb, for example, a sale price based on a percentage (always less than 100%) of annual revenue. This data is available for brokers and intermediaries doing transaction work and is considered a good starting point but never relied on 100%. INCOME APPROACH Multiples of discretionary cash flow, EBITDA, or capitalization of earnings. This method applied a cap rate (reflecting the level of risk) to a cash flow stream over a 3-5 year period to arrive at a value. The inverse cap rate becomes the multiple assuming a steady stream of cash flow moving forward. The biggest mistake made here is taking the income approach and adding together with the cost approach. They cannot be combined! I repeat they cannot be combined. If you are interested in learning more about business valuation services or buying and selling business in Oklahoma, click the link below to schedule a call with me. https://calendly.com/hank-16/intro-call

Price vs. Value Occasionally a meeting with a prospective business seller goes something like the example in the image. The company’s net profit is $10 off $100 of annual revenue, and they want to sell the business for $500. This acquisition equates to a less than 2% ROI and will take over 50 years to recap the initial investment without considering interest on borrowed money. Not many buyers (none that I work with) would be interested in this offer.... How did we sell 100% of the business we took on in 2020 and historically 92% of all business? We use common sense in the business pricing process. 1) Collect Data 2) Recast the P&L 3) Research Comparable Transactions 4) Compute Multiples 5) Compute the Selling Price 6) Test Conclusion To talk about our proven process or buying and selling business in Oklahoma click the link below. https://calendly.com/hank-16/intro-call

Everyone eventually exits their business - some do it with purpose.

Schedule now: https://calendly.com/hank-16/social-media-special At Bockus Consulting, we sell your business quickly and for the best price possible so that you can move on to your next big thing. And we want to speak with you just as badly as you need to speak with us.

At Bockus Consulting, we know firsthand that unplanned issues will INEVITABLY pop up when selling your business. Our job is to find the solution. We are problem solvers with outstanding results. (And we happen to be pretty good at math, too.)

Many business owners have told me stories about some random person calling to say that they want to buy their companies, often with promises of paying "top dollar". These are the questions that you should ask to quickly figure out if someone is wasting your time or not.