One of the advantages of membership in the North I-25 Business Association is the opportunity to give a three to five minute presentation on your company at a lunch meeting. We love to know more about our member companies!
To schedule your presentation, contact Elaine Mitchell by email or phone 264-9600.
Put your company in the Spotlight!
Dennis Houston, CMA
True North Business Navigation Professionals
April 19, 2017
2017 Spotlight Schedule
January 19 Kathy Steen, Pop-A-Lock of Albuquerque "Prevent Being a Victim"
March 16, Madison Rumbaugh, NM Piñon Coffee
April 20, Dennis Houston, True North Business Navigation Professionals
May 18, TBA
June 15, Available
July 20, Available
August 17, Available
September 21, Available
October 19, Available
November 16, Available
December 21, No Spotlight
“In the last two years in the US, more businesses have changed hands than at any other time in our history,” said Dennis Houston in his Spotlight presentation before the North I-25 Business Association on April 19.
Dennis Houston established True North Business Navigation Professionals thirteen years ago to provide:
- CFO services,
- Business Loan Sourcing,
- Exit Strategies,
- Employees Stock Option Plans, and
- Business Sale Intermediary services
Houston focused on his Business Broker Services, and his particular model.
While many other brokers assist with the sale or purchase of a business, using a real estate model, those situations often are the case of a person buying themselves a job, Houston commented. The average business sale in this category is about $200,000.
Houston’s niche is mid-market, with companies valued at $500,000 to $5 million and revenues of $1 to $20 million. Such companies generally are bought by a corporation, not an individual.
Why are so many businesses being sold and bought?
1. Owner fatigue. Business owners got clobbered in the 2008 recession and had to jump in and save their companies. With prospects looking better now, they want out. For most, the sale of the business represents a large part their retirement plan.
2. During the recession, there was little to buy. Many corporations had pent-up acquisition funds.
This current trend of business sales will continue for some time, Houston said.
Houston offers consultation to seller companies on options for structuring a sale. First, he helps them determine if the business is saleable. One method of conducting a sale is through creating an Employee Stock Option Plan (ESOP), a profit-sharing plan with special characteristics.
Houston helped the local companies KTech and General Technologies structure ESOPs that allowed owners to realize significant payouts, and allowed the employees to own the company. ESOPs can be customized so owners can receive a one-time, lump-sum payment, or receive payments stretched over several years.
One in three businesses are good candidates for ESOPs, said Houston.
Houston has represented Albuquerque Economic Development (AED) on a half-time basis for twelve years, and often "wears his AED hat" at North I-25 gatherings.