Perception vs Reality with Small Businesses
Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners.
One of our key sectors for engagement is manufacturing in New England, and other companies that produce components and distribute key supplies.
Nearly everyone we speak to is out straight. When asked about how things are shaping up this year, we get the following:
- A larger than normal backlog of orders.
- Delivery times are being pushed out.
- More help is needed but jobs are hard to fill.
- Materials are hard to get.
- Owners are stocking up their inventory or crucial items.
These point to a banner year.
Even so, we get this question: Is now a good time to sell?
The answer is yes. Good businesses will attract buyers in a wide range of economic conditions. History shows that it is nearly impossible to “time the market.” A good company will attract attention.
Our mission is to transition ownership of private New England companies in the lower mid-market. We believe strongly in this sector.
Census data indicates the vast majority of Americans work in small businesses, and a sizable number of these are companies with less than 20 employees. So why do we only hear on the news about the stock performance of conglomerates? That’s because most small companies are privately owned and data is not widely available.
We know companies in this sector make a difference in the lives of our neighbors.
Companies in the lower mid-market are often key suppliers of components and materials to larger entities. With the movement towards reshoring of production, this supplier role will become even more critical in the years ahead.
These businesses often provide excellent pay, and good benefits and often provide on the job training to those just entering the fields.
We have been checking in with companies we sold in recent years and found the following:
- Employment has increased.
- Hefty investments have been made.
- Businesses are growing with new energy.
Our approach in selling is strategic. We actively seek buyers. We build a market for the company.
Is this the best time to sell? Our answer is yes. Buyers are in the market with capital to deploy. If you are ready to begin the process of transitioning ownership, let’s talk. Soon.
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.