I just wanted to take a moment to formally thank you for your assistance during my recent business search for a manufacturing company in the Puget Sound region.  I had been looking through brokers and not really had an experienced partner to bounce ideas off of for about six months before you were recommended to me.  The quantity and diversity of the businesses that you located was beyond my expectations (and worth your fee just for this service).  I would have never found a business in the niche industry that I purchased and let alone in only seven months.  My wife and I are up to our necks getting landed in the new business- it’s great!  

 -- Robb Stilnovich, President
Tacoma Monument Works Tacoma, WA

John Martinka has been a very valuable asset in assisting me in buying a business. Because I had previously bought and sold a business, I knew how complex these transactions can be. I looked at over 30 companies. 95% were not on the open market. I would recommend using John and his services for anyone who is serious about looking for a business to buy.

Bob: Bob had previously owned a successful business that he sold a few years before we worked together. He had been searching on his own for one year prior to when we met with no success.

Bob was one of my best clients when it came to two things. First, he was very open as to the business he would buy. He was not looking for the perfect business or perfect deal. Second, he realized that building a relationship with the seller was the most important thing he could do.

We quickly found six acceptable companies with three on his “A” list. Bob made offers on two and achieved his goal of using as little of his own cash as possible. His final deal was about 50% of what the seller asked for. A few months later he wrote me that, “This is going to be even better than I thought.”

Tim: Tim was a high level and extremely successful corporate executive. When given the opportunity to take an exit package he jumped on it. His first plan was to start a business. He told me he was going to pursue a start-up idea and would call me back if it didn’t work. After going to a trade show he found that three other companies were further along on similar ideas (funding and customers) even though he felt the other ideas weren’t as complete and good as his.

We met numerous companies and he especially liked having a third party make many of the initial contacts. Tim found a company that matched his skills, constructed a deal that was win-win, secured financing and planned for the future. One-year after the close he told me that his success was a result of following the plan he wrote before buying the company (to increase efficiencies).

Stu: Stu is another former business owner. He told me one of the main reasons he hired me is my 50% rule. I stress that no more than 50% of profits go to acquisition debt. His previous business was highly leveraged and it really bothered him.

At the start we had a hard time figuring out exactly what type of business was right for him. Over the course of the next six months we looked at close to three-dozen companies. To demonstrate that it’s the little things (and being in the right place at the right time), here’s how we found the business he bought.

Stu distributed well over 100 of his business wanted flyers. A former business friend had a co-worked tell him that some good friends had to sell their business and asked if he knew anyone interested in buying it. He went to his desk, got Stu’s information and gave it to her. Stu met the owners a few days later and closed the deal seven weeks later. We met for lunch about five years later and he’s grown the business, expects it to keep growing, likes the business and especially the people who work for him.

Jim: Jim owned a business when we met. He was not full time in it and wanted something else that could handle part-time management. We looked at many businesses and business types. Jim decided to focus on the automotive industry.

We seriously looked at four companies. He made an offer on one that didn’t work out. Later, he bought a small firm with a manager in place. After that he bought a slightly bigger company that again had management in place.

Jim eventually sold the business he owned when we met and says he will eventually buy another. He is the client who made the statement, “I would never buy or sell a business from someone I don’t like.” This reinforces my preaching on how building a relationship is the number one objective any buyer should have.

Will and Mike: These two buyers bought a business together. Mike has manufacturing and operations experience. Will has sales and marketing expertise, a lot of it in the telecommunications industry.

Mike liked the company but realized it was too big for him alone. Will was open to joint ownership and they closely examined the company, which needed growth capital and management skill.

Mike had made another offer but due diligence caused the deal to fall apart. He told me it was a whirlwind as we looked at five good candidates in four months. A key to this deal was how could the company grow. There was too much equipment for the current volumes. With Mike improving efficiencies and Will (along with the sellers’, who stayed on) helping increase sales they made great progress quickly.

Ken: Ken had a company in mind. It was one of his vendors and he’d known them for years. He knew his skills could turn it around. Because of the absentee ownership and ineffective management a creative deal was needed. He used his persuasive skills and creative financing techniques to get in with a reasonable amount of cash and payments based on results. This was a complex deal and Ken liked the independent feedback that didn’t let him sway off course.  

Bob (another Bob): In 1998 Bob came very close to a deal on what he thought would be the perfect company for him. It reflected his customer service ethic, was related to the arts, in which he had a deep interest, and was profitable. Unfortunately, the seller had some personal issues and it just didn't happen. After entering the employment market again he came back to the market in March of 2003. The first week of July 2003 he closed on Wintergarden Design, a Redmond, WA company that creates incredible events for galas, auctions, trade shows and product roll-outs, conventions and celebratory events for corporations and non-profit agencies. They will turn a convention center or hotel ballroom into a roaring twenties bistro, a NW extravaganza (Space Needle, Mt. Rainier, etc.) or just about anything else. The deal happened quick because the buyer and seller had tremendous rapport and because the buyer moved quickly to perform his analysis, due diligence and we constructed a deal that met with immediate acceptance. My relationship with the intermediary representing the seller (Bill Pearsall) helped us get matters settled "behind the scenes" without emotion entering into it.

Hank: Hank had one of the quickest times to closure I have ever seen. He was focused on one industry that he had experience in. We immediately found three companies in that industry and the owner of one treated Hank  like his "long lost son" coming home to run the family business. In only 2.5 months (two months after he met the seller) they closed on a deal that Frank hopes will be his stepping stone to buying more firms in the industry.

Craig: This is a case of why I tell all clients to never stop prospecting for deals. Craig went from a family dispute causing the seller to pull back to an owner who when he realized what he really had decided not to sell to the next in line (which he bought). He solved a problem the company had --- three owners, no leadership, all friends who couldn't manage each other and complete disorganization. For a former CIO, this was a match made in heaven.

Rick: A serial entrepreneur, Rick already owned three businesses, one of which he had grown by acquiring five competitors. All had general managers and he wanted something to do. We found a marketing/advertising firm with a burned-out owner, a solid history and client list and huge profits. It took awhile to put the deal together, but it did come together and after five months he was ready to open a branch in another city.

Robb: An engineer who wanted a product, Robb had been searching months with no luck. In less than seven months we closed on a company that was a dead-on match with his skills. He specialized in operations, inventory, purchasing and organizations. Exactly what this business needed. The husband and wife owners looked to him almost like their child taking over the family business. He built a relationship and that led to a win-win deal.