Shared Profit Plan


TAS Marketing’s “Shared Profit Plan”

 We are a “Buyers Group” – just in reverse

          Join Forces…

Five Planes

 

There is no doubt that the telephone answering service industry is in an aggressive consolidation mode. Several major players have seen the enormous opportunity in our business and have run with it. With up to 40% profits on a business that has recurring revenue every month is a really sweet business model. They have finally caught on and are in a major acquiring mode. The caveat is that they want a service that is billing $100K per month or more.

These large companies with millions of dollars in their coffers are willing to pay 18 – 24 times monthly billing for a well-run answering service with the latest up-to-date equipment that is HIPAA compliant, has management in place, and is in a good location with healthy 40% profits. 5 years ago that same service would have sold for 12 – 14 times.

 

Like the Yellow Page Advertising and Funeral Home industry, the Ma & Pa answering service will soon be a thing of the past. In the not too distant future, there will be 5 – 8 major players owning 90% of the industry!

 


Industry Consolidation a Concern…

at one time our industry had over 6500 services – now we are down to just under 600.
Tell you something?

clockTiming!

As they say in “Show Biz”, timing is everything. At the rate of acquisitions going on right now, I believe there is another 3 – 5 years to get out before it is all gobbled up. But the longer you wait, the “Big Boys” will have owned everything around you and simply put you out of business. You cannot compete with their dollars & technology.

 

Businesswoman with head in hands

 

Don’t Know what to Do?

I receive calls daily from owners who would like to grow but can’t match the cash that the large buyers have to acquire new businesses. Some owners with a billing of $21,000 per month are having a hard time keeping talented staff and just trying to make a living. Large enterprises are not interested in the small services (with a monthly billing under $100,000.00) because it is too much work for such little return.

 

So what can I do as a TAS Owner who bills under $100,000?Money in pile

Join forces with other TAS owners like yourself to increase your combined monthly billing to at least $100K per month. Even increasing the combined monthly billing from $100K to $200K or $300K will increase the value of the business and usually increase the multiple thus more CASH for you and your group.

 

HOW?

 

Join TAS Marketing’s “Shared Profit Plan”:

 

By consolidating several services into a combined monthly billing of at least $100,000, will enable the owners to increase their leverage and ask for a higher multiple.

The average multiples from businesses sold by TAS Marketing for 2015 are 12.5 for the entire going concern and only 11.7 for accounts only.

Now the multiple or value for your business has gone from 11.7 times monthly billing to 15 times monthly billing. So if you were billing $35K per month, it would make a difference of $122,500 in your pocket.

 

 “These strategic & timely moves can be lucrative since so few TAS Owners take the time or have the ability to see what’s coming in the future” ~ Steve Michaels

Qualifications

In order to be fair to our buyers, we will need a listing sheet and financials to see if you fit into our level 1,2 or 3 groups.

We also want to bring top notch services to our buyers and cull out those that do not make the cut by billing $.20 cents per minute. The last thing I want to have is a buyer saying 4 of them are good and I’ll give you 15 times but number 5 is sub-standard for our particular business.

Rocking Chair

 Retirement

We know that for a lot of you, this is your retirement so getting as much as possible is very important.

 

Confidentiality

All transactions will go through TAS Marketing so your business listing and financials are only shown to the Buyer who has signed non-disclosures. In some cases you may never even know who the others sellers are in your group. Remember we have three levels: 1, 2 &3. Level 1 ($100,000) = 15 times monthly billing. Level 2 ($200,000) = 16 times monthly billing and Level 3($300,000) or 18 times monthly billing.

 

HandshakeBuyers

As you’ve noticed, the TAS industry is shrinking due to the consolidation of answering services from a few major buyers!

“Supply & Demand” is dictating that in the near foreseeable future, all of the large services will be bought up. That is why we have taken it upon ourselves to spearhead this “Shared Profit Plan”, to consolidate these services for you so that you now have a Plan B.

We have 3 levels of offerings Level 1 = $Up to $100K, Level 2 = $200, Level 3 = $300 with multiples of 15, 16 & 18.

The “Gravy Train” of companies billing over $100K is slowly coming to a close.  Let us help you continue to grow your company by doing the consolidation for you.

 

 

EXTRA!!

 

 If you reach the $100K mark and know of others that can take advantage of this (ONCE IN A LIFETIME) opportunity and can add another $100K to $200K you already have, then the multiple goes up from 15 times to 16, 17, even 18 times for everyone.

 

Sitting Steve Michaels

Broker Fee – 6% for SPP sales only.
Paid by Seller

 

Let me get you to this target market and get those high multiples the other large services are getting.
Call me at (800) 369-6126 or email me at [email protected] for a complete rundown on our exciting new program!