Mike Kelner’s approach to M&A is a winning formula for operators ready to sell

“I have the long-time buyers, the well-known players on speed dial. At the same time, the new breed of buyers, including private equity groups and the more recent, acquisition-hungry operators — they come to me looking for deals, because they know I represent sellers who have their 'ducks in order,' which eliminates uncertainty for them, allowing them to bid confidently,” Kelner noted. “They also understand how much VBB Advisors values confidentiality, which is critically important for all parties involved.”

3. Technology

Kelner said that the technology factor can be seen in his approach to sound valuations, something that both buyers and sellers appreciate.

“As I wrote in my February 2022 newsletter, “I cannot stress enough the importance of proper business valuation. The selling price of your company isn’t something that should be written on a cocktail napkin and passed across the table,” he said. “At VBB Advisors, we use two sets of powerful financial software to prepare your business valuation. This high caliber software is used by private equity firms to generate valuation based on cash flow, assets and market multiples. Only then, after running your numbers through our software, do we use industry data on deals made in the past 24 months. Valuation isn’t determined by a hunch. It is determined by a professional and proven process.”

4. Preparation: The VBB Exit Advantage

“The VBB Exit Advantage is a customized approach that emerged in 2022, created for a couple of very smart operators who recognized that if you want to maximize the selling price of your business, you need to take a deliberate and thoughtful approach to your exit plan,” said Kelner. “It worked so well, we decided to make it the standard approach for any operator who wants to take the most professional route and ultimately, experience a business sale that will exceed expectations.”

A $10,000 value for free. Kelner noted that the VBB Exit Advantage is a $10,000 value. The tailored exit planning program is ultimately free to any operator who works with VBB Advisors on the sale of their business.

“The operators who utilized the VBB Exit Advantage in 2022 were quite pleased with the ultimate result — a very successful sale of their business,” he added.

“Operators who choose the VBB Exit Advantage, do so with the understanding that you don’t sell your business with the flip of a switch. Our approach involves months of planning and careful analysis. It starts with a professional valuation to establish a baseline,” Kelner explained.

5. Marketing

While it is tempting for a business broker to deliver the “obvious buyer” for your business, it is important to understand that the obvious buyer is often not the “optimal buyer.”

“VBB Advisors has a process that will confidentially market your company to numerous possible buyers, including operators, private equity firms, entrepreneurs outside the industry — even bottling companies,” Kelner said. “Competition is a good thing, and it will translate to a higher selling price and getting the terms and conditions of a deal that are in line with your wishes.”

“Once legitimate buyers have been attracted and vetted, they receive extensive, comprehensive marketing materials and information about the company for sale through an online portal. At this point, the seller’s early concerns are replaced by excitement, especially when it becomes apparent that multiple offers will soon be coming in. For the seller, it is an exciting time,” he added.

6. The details: You need an advocate

Kelner pointed out that when it comes down to the details — real estate, protecting key employees and a long checklist of key terms and conditions — VBB Advisors will be there working for you, working only on your side of the table, to get you the deal that will leave you feeling comfortable and confident.

A testimonial that says it all

Kyle Loughran is not your typical convenience services operator. He was attracted to the industry for many reasons, including micro markets and new technology. With a background in private equity, he had been involved in over 30 M&A deals before starting Legend Food Service. With all his experience, when it was time to sell the company, he turned to Mike Kelner and VBB Advisors.

Loughran outlined several reasons why he chose VBB Advisors in Kelner’s September 2024 newsletter.

“M&A is hard,” said Loughran. “It takes a lot of time and focus. Mike is an expert in M&A, and he will get you the best offer. I don’t think a full-time operator is going to have the bandwidth to focus on a deal the way Mike does. That extra bandwidth on the front end of the deal translates to dollars,” he said. “For us, using Mike translated to multiple offers — the benefit was high six figures.”