How It Works
RedTire acts as a matchmaker between rural business owners looking to exit and either highly qualified graduates from Kansas universities who have the expertise and ambition to run those businesses or experienced business managers looking to buy and run their own business.
Although each transaction is modified to ensure a successful ownership transition, the general steps in the RedTire process are as follows:
- Candidate businesses and potential replacement management are identified via application on this website or by recommendation from friends and associates of RedTire (local bankers, attorneys and economic development officials).
- Top business candidates are asked to provide summary financial histories of their companies, and selected replacement managers are asked to self-evaluate their candidacy via a summary questionnaire. As the fit between each candidate company and the candidate replacement management must be excellent, we use these two preliminary surveys to ensure a good match and avoid wasting your time and effort. All information provided will be held in the strictest confidence.
- No later than five days from receipt of the submitted surveys and summary financial information, RedTire will alert you to your acceptability as a candidate business or replacement manager. If there is no current match between business and manager, your information will be retained for possible future matches. You can also simply request that your candidacy and information be destroyed, which will be confirmed with an email from RedTire.
- If you are selected to continue the process, you will be asked to provide additional business financial data and complete a survey by a nationally known employment research organization at our expense.
- Within two weeks of receipt of this information, RedTire will call to arrange a meeting at which an estimate of the business' purchasable value will be presented. This estimate is based on generally accepted business valuation models; the specific purchase price and deal terms will, of course, be up to the business owner to negotiate with the replacement management.
- The RedTire team will be available to help both the business owner and the replacement management conduct a successful purchase and transition, including providing business counsel and advice post acquisition to help the replacement management grow the business.
RedTire will provide a guideline for valuation of the business to help begin the negotiation between retiring business owner and the replacement business management. The valuation and attendant deal terms are intended to help both parties proceed to a successful buy/sell negotiation, and does not represent an obligation on any parties behalf.
All of the RedTire functions and activities are free of any charge and there is no obligation for any payment whatsoever for any services provided. It is our sole purpose to help successfully connect retiring owners and replacement management to further grow the Kansas economy and provide more good paying jobs for its citizens.