We’re excited to introduce you to the always interesting and insightful Loren Schmerler. We hope you’ll enjoy our conversation with Loren below.
Loren, looking forward to hearing all of your stories today. Risk taking is something we’re really interested in and we’d love to hear the story of a risk you’ve taken.
At the age of 73, I have chosen to reboot my career by building a lifelong portfolio of education, experience and success stories in order to assist the next generation with business opportunities. Risks that I have taken also include: Listing and selling Businesses that are losing money. Listing and selling Businesses with no tax returns or financial statements and listing and selling Businesses with significant errors in their daily, weekly, monthly and annual records.
The biggest risk that I have ever taken is listing a service company that has been in existence for 42 years and has absolutely no records to
justify the asking price. I have to use a great deal of ingenuity and persuasian to sell the Business. I have found a Buyer. Throughout my 35 years of being a Business
Broker, “thinking outside the box” has allowed me to align Sellers and Buyers where all parties are pleased with the outcome of the transaction.
Awesome – so before we get into the rest of our questions, can you briefly introduce yourself to our readers.
Loren’s Company is a member of the Georgia Association of Business Brokers (GABB) and International Business Brokers Association (IBBA). The firm also offers a “Buyer’s Broker Program” to assist qualified buyers in their search for business acquisition opportunities. Loren Marc Schmerler, CPC, APC is President and Founder of Bottom Line Management, Inc., an Atlanta-based business brokerage and consulting firm. A Summa Cum Laude graduate of the prestigious Boston University School of Management and recipient of the Harold C. Case Scholarship for Academic Excellence, he holds an MBA with Honors from Georgia State University. Prior to entering the business brokerage and consulting field, he served as Chief Financial Officer or Controller for several firms ranging from start-up to Fortune 500 subsidiary. As a Certified Professional Consultant with experience in more 200 industries/types of businesses, he has helped thousands of business owners throughout his career. In 1998, Loren consulted as a speaker/presenter for STAPLES, the world’s largest office products chain. Loren was INC. Magazine’s Cash Flow and Negotiation expert for INC. World EXPOs in 1994 and a speaker for that publication’s “Growing the Company” conference in 1991 and 1992.
Loren conducted workshops and seminars for more than two dozen colleges, universities, organizations and Chambers of Commerce including: Entrepreneur Magazine, BellSouth, IBM, John Hancock Mutual Life Insurance Company, Manulife Financial, Virginia Power, Ohio Bell, Ameritech, Builder Magazine, International Association for Financial Planning, Small Business Administration, Atlanta Chamber of Commerce, City of Atlanta, Dekalb County Board of Education, Private Industry Council of Georgia, University of Tennessee, University of Kentucky, Emory University, Kennesaw State University, University of Georgia, University of Miami, Miami-Dade Community College, Oglethorpe University, and Florida International University. His visit to Florida International University resulted in a one hour television appearance that is on his Website (BOTLINE.COM.)
In addition, for two years, Loren was selected to be the only business advice columnist for Walmart’s Sam’s Club. More than 20 million business owners have read his advice showing business owners how to maximize the value of their Businesses when they are ready to exit and realize the reward from their “sweat equity.” Mr. Schmerler has been broadcast over more than 50 radio stations, and he was selected by the Small Business Administration to conduct “austerity survival” workshops for communities hardest hit by the Persian Gulf War.
We’d love to hear a story of resilience from your journey.
At age 73, I have rebooted my life and re-entered into the business brokerage industry which is flooded with young aggressive brokers lacking the experience, knowledge and understanding of how to genuinely help today’s Business Owners. Our firm services the Mergers and Acquisitions Market as well as the Main Street Market. We view the Main Street Market as Businesses that sell for less than $1,000,000 dollars, and we feel that the Mergers and Acquisitions Market can exceed $100,000,000 dollars.
One of our most difficult Business transactions was trying to sell our Client’s water purification Company. It is owned by two Brothers. They have invented a brilliant water purification system where undrinkable water is processed through 4 filters and comes out of the fourth filter as totally drinkable water. They showed us in person and also have a video that demonstrates how the process works. The Owners were each making more than $1,000,000 a year. The profits that enabled them to pay themselves so well were in excess of $2,000,000.
In the M&A Market, Companies typically sell for a multiple of four times the profits. In this instance, a multiple of four means $8,000,000. But the Brothers wanted a multiple of
5.5 which meant they would not sell for less than $11,000,000. When they told us this and listed their Company with us, we knew it would be a very difficult journey. Every prospective
Buyer said the same thing. The Company is over-priced and not worth $11,000,000.
The interesting aspect of this transaction is who their Customers are. They sell heavily to hospitals, fire departments and police departments. But there is a charitable side
to this Business. The Brothers have very big hearts. They have two models that they sell. One must have electricity, and the other is operated by the sun. Every year, they fly to
the Dominican Republic with many solar powered models and distribute them at no cost to the population. Considering how undrinkable the water is in their Country,
the gifts of the solar powered models are incredibly appreciated by the village populations. More than likely many children and adults were saved from dying. We worked for 14 months until we finally found two men who were willing to pay the $11,000,000.
The ironic part of this story is that the Buyers and Brothers liked one another so much that the Buyers offered to buy 51% of the Business, and the Brothers stayed on board with
a 49% ownership. What is truly funny about this transaction is what took place on the day of Closing. There were Bankers present as well as Attorneys. I was looking out the window
on the 26th floor, and what did I see on the ledge? A vulture was watching the whole transaction through the same window as me. I thought it was very funny that the Buyers were
getting a multi-million dollar loan from the Banker vultures.
Any advice for growing your clientele? What’s been most effective for you?
Speak the truth. Honesty, integrity, and total transparency with outstanding customer service and support will influence most people to try your goods and/or services. Most effective is providing a niche that speaks directly to a specific clientele needing your expertise and knowledge. All of this applies to us as well. Our website (BOTLINE.COM) has been totally redesigned to educate Sellers and Buyers before they become our Clients. We want our Clients to view us as their partner in the selling and buying experience. We treat each Client’s
business as if it is our own. We obtain Business from Seller referrals, Buyer referrals, industry referrals, vendor referrals, family referrals and extensive testimonial letters that are
shown on our website(BOTLINE.COM.)
Contact Info:
- Website: https://www.botline.com/
- Facebook: https://www.facebook.com/BottomLineManagementInc/
- Linkedin: https://www.linkedin.com/authwall?trk=bf&trkInfo=AQF9Z7h_q4VmZwAAAX92U1iAcnCcR0A4y3RdphpcmleUBmX3yYearekDQSQQxkpKPPD8k9scZ5_Zs7zzCQ_nEm1QN2E2xFjYxRoqYkGPerqmSTqLhOp8GmnqZ9JorQDikANCUo0=&originalReferer=&sessionRedirect=https://www.linkedin.com/in/loren-marc-schmerler-cpc-apc-70a8925
- Twitter: https://twitter.com/BottomLineMGMT