From the Trenches - Interview With Virginia Business Broker Nathan Hughes
Nathan Hughes
Current market perspective from the trenches of the business acquisition & sale industry
Sit-Down Interview With Business Broker Nathan Hughes
What are your thoughts on where business acquisition & sale market activity is heading over the next 3-12 months?
I specialize in restaurants and focus on the City of Richmond and surrounding counties in Virginia. The restaurant brokerage sector over the next 3-12 months is going to see a whirlwind of activity.
Restaurant owners have seen a fundamental shift in their industry and no one can be sure where it will land at this point. All that can be assured is that models need to shift along with the new realities. Many won't want to change, and many won't be able to adapt enough.
Others will change or find that their concepts are particularly well-suited to the new world. Even without changes directly related to COVID-19, I have seen some successful multi-unit operators deciding to sell off parts of their portfolios to change how their business is set up geographically or how their individual concepts work together.
What do you see as the top three things the government needs to do to support main street business acquisition and sale opportunities for small business owners through the remainder of this year?
Clarify how the forgiveness on the PPP program works for businesses that want to sell. Reassure sellers that the intent to sell affects their chances of loan forgiveness.
Provide clear and cohesive guidance/updates about COVID-19, rather than issuing contradictory statements across different branches and different levels of government. There is a lot that can't be known about how this will play out, but don't make wild guesses just to be able to sound like you know more than you do.
Provide proper funding and personnel for the SBA, to be sure that small business lending remains reliable.
How would you rate the current political environment related to small business growth, business acquisition & sales?
3/5
When you're ready to pass on your business to your family, it's important to make sure that everyone is on board and understands the challenges that are ahead for successful exit planning. While many owners are worried about losing control, diligent business exit planning is key to ensuring that everything goes smoothly. There are many ways to maintain ownership while still giving family members a stake in the company. You can create a succession plan that allows you to transfer ownership gradually over time to avoid disrupting operations and giving family members time to learn the ropes. You should also consider creating a buy-sell agreement that outlines what will happen if one member dies or becomes incapacitated and cannot work in the business anymore. The deal origination agreement should include…