Crisis Shows Ripple Effect of Business
Our focus at BTS is on small companies that are the backbone of the economy.
Our work generally involves representing companies as they seek to sell or implement a growth through acquisition plan. This gives us exceptional insight into what it is like to be owner-operators.
Earlier this week, we checked in with two clients: one is shut down for employee safety, and another is fully running in order to manufacture components needed in the health sector.
One thing is clear: even the smallest private companies can have a big ripple effect on the economy.
An article in the Wall Street Journal over the weekend traced the impact of one restaurant in Georgia shutting down its dining room, and showed how the upheaval had a spider web impact on the economy.
This one shutdown of operation hurt a hydroponic lettuce grower, reduced orders to a farm to table business, a waitress relying on tips couldn’t pay rent, the laundry service had to cut back because of reduced tablecloth orders.
We know what it feels like to be frightened about the future considering the current health crisis. We’ve pushed transactions out weeks and even months during the uncertain times.
But all is not lost. Please don’t get overcome with doom. Many resources are available to help you weather the storm.
Talk to your banker. Talk to informed advisors. Search the web for resources. Be pro-active.
One huge resources is the Small Business Administration. It has a lot of information available and programs are in place with others coming online to help business get back into business as the health crisis passes.
BTS News
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Manufacturer Sold and New Owner Expands It
BTS served as advisor in the sale of PlasTech Machining Fabrication, Inc. to DelCam Holdings in 2020...the company has grown substantially, doubling employment and adding capacity to boost future prod
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How M&A Will Respond to Next Recession
The takeaway for business owners: Get back to basics. Don’t worry about hyper growth. De-risk your company as much as possible.
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Perception vs Reality with Small Businesses
Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners. Nearly every owner we speak to is out straight.
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NH-Based Techinical Manufacturing Company Sold
Hampshire Controls has a bright future with new ownership. The company was recently sold by Diane Rush, owner and president, to Pillar Imaging and its leader Dr. Michael Pilon.
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Be Ready When You Are Ready
When a business owner says it’s time to sell, I ask, “How fast do you want to be out?” The answer I hear most is, “Yesterday.” But sellers underestimate how long the process takes.
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Looking at a Sale Through the Right Lens
Sometimes our vision about the future is blurry because we aren’t considering the whole picture but only parts of it.
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5 Deal Points from the Trenches
Today I work with clients of Business Transition Strategies who are implementing Growth Through Acquisition strategies. Here are a few observations from working on a wide variety of projects.
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Tax Changes Could Hurt Net Proceeds
Changes proposed to the capital gains tax suggest they may need to get 30% more in a transaction in the future just to net the same value they would get today.
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Good Ideas From Shark Tank Deal
One of my colleagues in Cornerstone Alliance was front and center in a recent Shark Tank exercise. A business that had been sold was put in front of four potential buyer groups.
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Buyer Trends in Lower Mid-Market
Other businesses are a significant market for companies being sold within the lower mid-market.
Case Studies
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Precision Machining Company
Initially, liquidation was a serious consideration. It would offer a quick exit but would hurt loyal employees and disrupt the customers who had come to rely on its quality production.
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Green Product Company
Our client owners could dig in for the long haul…However, this would take five years or more. Owners simply lacked the horsepower to do it.
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Water Purification Company and Young Buyers
Owners decided they wanted to retire. They also wanted to be fair to the staff who had been loyal to them. Could the company be sold, the staff retained and the facility remain in use?
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Magnetics Company with High Profile Customers
(T)he manufacturer would need to focus on growing EBITDA to capture interest from major strategic buyers and achieve a higher multiple of earnings.