Seeking views on 2 B2B Franchise opportunities

intermediary profile

April 07, 2021

by an intermediary from University of Virginia-Darden - Darden School of Business in Metuchen, NJ 08840, USA

I am a new member of this group and currently exploring 2 different franchise opportunities. Wondering if this group has any views on the following

1. Cost Reduction Franchise: Help businesses reduce indirect expenses by benchmarking and negotiating with existing (or new) vendors. Franchise earns x% of the savings over 2-3 years.

Pro: Could be recession-proof as who does not want to reduce costs during tough times.

Con: Cost Owner might not realize the work involved and thinks they can do it on their own.

2. Business Brokerage Franchise: Helps a business sell or Franchise. Help an investor buy (should be a great fit with this group). Franchise earns x% of the deal value.

Pros: Dealing with a business owner directly for a transaction that would be a top priority for her/him. Good return for the time spent, as long as the deal pipeline is healthy.

Cons: Deal flow can be sporadic and the bid-ask spread could be too wide for unsophisticated buyers and sellers.

1
1
69
Replies
1
commentor profile
Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA
I can provide an insider's perspective on #2. Feel free to reach out to me directly -- redacted I started my M&A career in the internal M&A department of a large regional bank, then moved to the investment banking group, then started an in-house M&A group for an insurance company, then started a FINRA broker-dealer, then joined Murphy Business Sales as a franchisee, and am now one of Murphy's regional directors.
Join the discussion