Selling an Allegra Marketing franchise business is much more complex than selling a home or a vehicle. Moreover, selling a franchise presents unique challenges, particularly if you have a franchise agreement or buyer qualifications and training requirements. Due to this, we recommend working with a business broker with experience selling franchise businesses. Below is a detailed review of how to determine the value of your Allegra Marketing franchise business and a step-by-step guide to the sales process.
About The Allegra Marketing Franchise
Allegra Marketing is a franchise that offers full-service marketing, mailing, and printing services. More specifically, Allegra Marketing businesses offer a range of services that include (but are not limited to) traditional printing, photocopying services, and electronic file, formatting, and colorizing services. Allegra Marketing franchise businesses are commonly referred to as quick printing stores. Although, a full-service marketing, mailing, and printing company is more accurate. There are approximately 195 Allegra Marketing franchise establishments across the United States.
How to Value an Allegra Marketing Franchise Business
The recent data for Allegra Marketing franchise businesses is not extensive enough to formulate reliable rules of thumb (acquisition multiple). However, Allegra Marketing franchisees generally sell for approximately 60% to 65% of their annual sales plus inventory. Of course, there are outliers as well; some sell for more or less than this amount.
The most popular financial metrics considered during the sale are your seller’s discretionary earnings (SDE), earnings before interest, taxes, depreciation, and amortization (EBITDA), and your gross profit. Aside from the financial information, other factors such as your unique competitive advantage, the condition of your equipment, and your reason for selling all play a role. We recommend working with a business broker to determine your business’ value.
The Sales Process for an Allegra Marketing Franchise Business
It is best to speak with an experienced business broker about a personalized sales process as no two companies are the same. However, below is a general overview of the sales process to help you determine if a sale is worth it for you and allow you to properly prepare.
- Bring in the experts – Unlike home sales where comparable properties are easy to find, it is much harder to determine the value of an Allegra Marketing franchise business as there are not many comparables. Additionally, the value goes beyond financial information. Due to this, it is best to bring a business broker to conduct a comprehensive business valuation.
- Understand your franchise agreement – Your franchise agreement may contain requirements you must meet before selling. You (along with your attorney and broker) should take time to learn about your franchise agreement with Allegra Marketing.
- Plan a personalized strategy – Next, you can prepare your strategy. Cookie-cutter, one-size-fits-all solutions are not usually effective because no two businesses are the same. Instead, your broker should customize a plan that allows you to reach your goals.
- Prepare for the sale – It is vital to prepare for the sale to ensure a successful and efficient process. This includes preparing your financial documents (tax returns, profit and loss statements, etc.). Your CPA and broker can help you with this step.
- Bring your company to the market – The key to this stage is confidentiality. You do not want existing customers and clients catching wind of the sale of your company as it could affect revenue and business operations, thereby making it harder to find a buyer. Your broker should handle this process for you and utilize access to their networks, databases, and contacts.
- Negotiate with potential buyers – Negotiations are often intense. Allow your broker to work on your behalf because they can secure you the best deal and keep the process organized and professional.
- Receive a signed letter of intent – Once a buyer is in place, they can move into the due diligence stage by signing a letter of intent (LOI) to purchase your Allegra Marketing franchise business.
- Complete the due diligence process – The buyer needs a chance to confirm all information about the business before they head to closing. This opportunity to review all business information, request documents, etc. is known as due diligence. Although this is a time for the buyer to learn more and ask questions, it should follow a structured process to ensure the process does not drag on longer than necessary.
- Close the sale – Last but not least, it is time to close. Although an exciting time, it is vital not to overlook this step. Your attorney should be present to review the information and confirm the payment. The transfer of the business starts as well.
Additional steps may be required throughout the sales process. For instance, if the buyer receives financing to make the purchase, then this could add a step that your attorney and business broker can help you navigate.
How a Business Broker Can Help You Sell Your Allegra Marketing Franchise Business
We strongly recommend working with a business broker when selling your Allegra Marketing franchise business. Your business broker plays an integral role throughout the sales process. Here are several ways a business broker helps makes the sales process easy:
- Provide you with an accurate valuation
- Ensure you maintain confidentiality
- Use networks and databases to find a buyer
- Assist with negotiations and contingencies
- Help work through franchise agreements
- Assist with closing the sale
On the other hand, trying to sell your business on your own can lead to unnecessary stress and poor results. You run a higher risk of selling for below market value or failing to secure a buyer confidentially. The good news is qualified brokers with affordable services. For example, at Sigma Mergers and Acquisitions, you only pay once the sale is complete.
Contact The Business Brokers at Sigma Mergers and Acquisitions
Here at Sigma Mergers and Acquisitions, we take pride in helping Allegra Marketing franchisees sell their business for fair market value. Our passion is driven by our experience, and we have personally sold businesses ourselves. This is along with helping more than 600 of our clients sell their businesses as well. Contact us today to learn more and get started with a consultation and free valuation.
Scot Cockroft is the Owner & President of the #1 ranked Business Brokerage, Business sales and M&A firm in Texas. Scot has been named Named Deal Maker of the Year by Dallas Business Journal.
He is committed to a “different” type of business brokerage firm, one that is NOT about a sales pitch but, rather, results! In short, a business brokerage firm that is committed to performance-based compensation. Scot believes in these principles as well as a candid honesty with clients. His candid style often takes buyers and sellers by surprise, but is often what assures successful connections between the two.
Feel free to reach out!