The Best Way To Find Distressed Businesses?
I am trying to find businesses that either are distressed or family owned and ready to sell. Any advice on how to find these situations?? I'm in the middle Tennessee area, but will consider neighboring states as well.
What are you planning on doing with these businesses? Are you planning on turning them around, liquidating them, etc?
Just curious
Chas,
Our endgame will be different for each situation. Most businesses, we will continue to operate with the current management and workforce, grow the business and a few years down the road, offer publicly. Others, we plan to put back on the market immediately.
Sounds good. Sorry i am unable to answer your actual question but I hope others will be able to. Keep us posted.
Well, especially in your area I'd work the word of mouth trade. Start attending Chamber of commerce breakfasts, visit banks and explain what you are looking for, Have cards/brochures printed up (make them look professional-- not something you did yourself on a PC-- but not necessarily too glossy) hand them out to business people even if they don't look like great prospects at the time.
If you want to spring for more bucks with small returns you can buy lists of business owners and even limit it pretty much to specific kinds of businesses and do mass mailing campaigns.
I noticed here that in my area you will notice restraurants going out of business buy their ads there are a few places that offer ads pretty cheap and the restraurant will over good deals like buy one get one free as a last attempt to stay in business
I recommend you look through the online business brokers. There are many to choose from. I cannot say that they are distressed but there being sold for one reason or another.
check your local news paper
I think the best advice that I saw on this topic thus far was targeting businesses via direct mail, and I happen to believe that is the best way in addition to word of mouth and personal contacts.
But direct mail will allow you to target the exact kind of businesses in whatever area or demographic you desire and when you combine direct mail with maybe phone follow up and multiple mailings over time, you could have more opportunities to buy businesses than you could ever imagine.
[ Edited by commercialking on Date 03/05/2005 ]
We recommend working with brokers that are in our brokers section. There, you should be able to find a broker in your area that are listing their properties with us and working with investors on an ongoing basis.
4e6zbi102 I am not sure I understand your question. What I was saying was that achab could invest with a person who has either local knowledge or specific expertise (construction, etc.). Would that partner also bring cash to the deal? Possibly yes.
Commercial King, I would be greatly interested in hearing some more details about your development proposal. For various reasons, I would not be able to oversee such a project myself. Is there a way to communicate via email?