We have had many conversations with business owners in the lower mid-market who are unsure about the future and wonder whether they should sell or hold.
I found a page in my journal from earlier this year listing three things we should make sure owners think about.
What matters most to you?
Is it the highest price for you, the best outcome for the business or a plan that offers freedom? Ultimately your thinking will impact the transfer and strategy. Getting the highest price may not mean the best outcome for the business, and your legacy.
Who do you listen to most closely?
Most of us have advisors, official and unofficial, who influence our decisions. Now’s a time to consult them. They know you well, and may offer helpful advice. These could be an accountant, an attorney, a relative. We often are in the conversation from a transaction perspective. An honest talk increases the prospect of a good outcome.
Have you saved funds outside the business?
This issue will impact your flexibility. It is common for owners to reinvest everything into their business as it develops. But putting funds away outside the company for retirement can give you more options when it is time for a sale.
Get a close look at your options by contacting us for a no-obligation meeting. We will review the options and outline the process we use. We work exclusively with companies like yours. We use a tried and true process to achieve a successful outcome. Most of our clients meet with us at least once or twice before making a decision.
BTS News
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
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.
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.
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.
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.
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.
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.
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.
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.
Buyer Trends in Lower Mid-Market
Other businesses are a significant market for companies being sold within the lower mid-market.
Case Studies
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.
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.
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?
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.