About the Business

• Industry: Children's Play and Party Business

• Location: Redondo Beach, California

• Years in Operation: 9 (including time as a franchise)
  

The Challenges

Peter Rockwood, a seasoned hospitality consultant, co-owned Southplay, a children's play and party business, with his ex-wife. While Peter managed the finances, marketing, and HR aspects, his partner handled day-to-day operations. The company initially thrived as a franchise, even as the only profitable location among six. However, the pandemic forced a shutdown in March 2020, leading to the franchisor's closure. Peter successfully negotiated favorable terms with his landlord and reopened as an independent entity in May 2021.

As Peter approached his mid-sixties and faced the end of his second lease agreement, he considered selling the business or closing it down. He needed a way to sell the business efficiently while managing his consulting work.

Why Baton?

Peter listed the business on BizBuySell and was contacted by Baton. Initially skeptical due to his previous underwhelming experience with a commercial real estate broker, he was intrigued by Baton's approach. The representative's thoroughness, understanding, and non-pushy demeanor convinced him to learn more. The competitive pricing and structured template also appealed to him.

From "Hello" to Close

Peter's journey with Baton unfolded smoothly:

1. Valuation: Baton provided a valuation report that aligned closely with Peter's expectations.

2. Terms: Peter worked with Baton to outline his desired terms for the deal.

3. Buyer Outreach: Baton conducted extensive buyer outreach, tapping into multiple marketplaces and its qualified buyer pool.

4. Qualified Buyers: Peter only engaged with pre-screened and pre-qualified buyers, saving considerable time and effort.

5. Smooth Process: Despite an unexpected escrow company dropout, Baton ensured a seamless process.

Peter highlighted the convenience of uploading all financials and documentation once, allowing Baton to manage and share it with potential buyers. He also valued Baton's ability to pre-screen buyers, ensuring he only dealt with serious candidates. Peter closed the deal in January 2024.

Peter's Advice

"Get your financials in order and be as responsive in detail and as quick as possible... get your documents in order, make sure they're clean, and share any liabilities or potential hiccups upfront."

Peter emphasized the importance of transparency and responsiveness to expedite the sales process.

Conclusion

Peter's experience with Baton was overwhelmingly positive. He praised the team's helpfulness and considered them a "business friend." He recommends Baton to any business owner looking to sell, emphasizing the ease and efficiency of the process. Ultimately, Peter was able to sell Southplay on his terms, paving the way for a well-deserved retirement filled with golf and fruity umbrella drinks.