Report on Marketplace with Andrew Cagnetta and JT Tatem

Transcript

How long does it take to sell a business, and what’s the right price to make it happen? Andy and JT welcome you to another episode of The Deal Board Podcast. This week, they dig into the latest numbers shaping the business brokerage market. They unpack Transworld’s record-breaking 2024 results, explore how deal multiples vary by earnings, and explain why correct pricing is the key to avoiding expired listings. During the conversation, they also discuss the influence of baby boomer retirements, the power of co-brokerage, and how buyer behavior is evolving in today’s market. Looking ahead, Andy and JT share why 2025 is off to a strong start and why the second half of the year could be even better. Tune in and discover the data, trends, and strategies you need to navigate the market with confidence.

Deal of the Week:

Wayne Blease’s sale of a diversified events business featuring two event centers, a chapel, a restaurant with catering, multiple B&Bs, and a fully built Western town. The business included over four acres of real estate. Sold for over $3M after a two-year search for the right buyer to preserve the seller’s legacy. For more information, call Wayne at (713) 201-2346 or email him at [email protected].

Listing of the Week #1:

Rupesh Bharad shares an exciting opportunity on a 75-year-old, high-end blinds and window treatment business with $750K in bottom-line earnings. Listed for $2.4M, with the option to purchase the real estate for an additional $1.6M. SBA financing options are available, making this a strong opportunity for buyers looking for a legacy business with real estate income potential. For more information, call Rupesh at (804) 835-6363 or email him at [email protected].

Listing of the Week #2:

Rupesh Bharad is selling a 21-year-old, relocatable art and display business with $200K–$250K in bottom-line earnings. The sale is bank-financeable and listed for under three times its earnings. The business is also suitable for operation from any location. For more information, call Rupesh at (804) 835-6363 or email him at [email protected].

Key Takeaways

[00:00] Introduction and what listeners can expect from this episode.

[01:03] Celebrate success as Andy and JT announce $1B in transactions for 2024.

[02:09] How generational shifts are creating a surge in business sales worldwide.

[03:39] Why understanding the marketplace is key and what businesses often get wrong.

[06:13] Find out why small businesses are still the backbone of the economy.

[07:27] Trends in sellers owning business real estate and keeping it for rental income.

[08:25] Why opening the market enhances seller outcomes and speeds up sales.

[10:47] How stats guide strategies at Transworld and what drives multiples.

[14:40] Navigating pricing when selling and the common mistakes sellers make.

[17:36] Learn why sales can take several months and the danger of “testing the waters.”

[19:47] Projections for 2025 and why buyers must act quickly in today’s market.

[22:13] Deal of the Week: Wayne Blease talks about selling a Western-themed events business with multiple revenue streams.

[24:26] Listing of the Week #1: Rupesh Bharad tells us about a 75-year-old window treatment business with an optional real estate purchase.

[27:30] Listing of the Week #2: Rupesh Bharad is selling a relocatable art and display business with strong earnings and bank financing available.

Quotes:

“One of the deal killers is just [that] people don’t understand the marketplace.” — @acags [0:04:22]

“The seller, when they hire, they don’t care where the buyer comes from.” — JT Tatem [0:09:29]

“[Transworld] always [says] that the quality and quantity of earnings will drive multiples.” — @acags [0:12:03]

“Businesses are not going to be overpriced because people don’t like to negotiate anymore.” — @acags [0:16:24]

Mentioned in This Episode

• The Deal Board Podcast
• Subscribe to The Deal Board Podcast YouTube Channel
• United Franchise Group
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook
• Florida Business Brokers
• Wayne Blease
• Rupesh Bharad