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Through the Fresnel Lense

Real Estate Leases

Posted by Jeff Muir on 8 March 2017 | Comments

The typical business owner doesn’t worry about a real estate lease except when it is created or when it is time to renew.  In some cases the renewal process consists of a one-page addendum signed by both parties agreeing to a new monthly rent and an extended term with other provisions carrying over from the existing lease.  This quick renewal can have unintended consequences during the late stage of the business sale transaction.

comment(s) | Read the full post

It's not about you

Posted by David Humphrey on 28 February 2017 | Comments

The sale of your company is not about you.  Well, it probably is, but that should not be the focus during the sales process. Think like the buyer; investors are looking to buy a business, an engine that generates revenues and profits separate and distinct from the value a retiring owner contributes to the business.  

comment(s) | Read the full post

Staff Retention

Posted by Jeff Muir on 10 February 2017 | Comments

Many owners highlight that their business is a great place to work by pointing to their employee retention. With pride they mention the number of employees who have been with them for more than twenty years and even the occasional thirty-year pin they awarded. If the workforce is large and this long-term retention applies to a small percentage of employees while there is a strong mix of ages among the rest of the team, this is truly a feather in the owner’s cap, a strong testament to the company as a great place to work. Think like the buyer; if the team is predominately older, especially in the management ranks, the buyer sees three potential problems:

comment(s) | Read the full post

Enhance the Presentation

Posted by David Humphrey on 1 February 2017 | Comments

When working with buyers, you are in sales mode all the time—from the initial contact to an on-site tour to meetings even after the deal is struck. Make each contact with the buyer positive. The initial tour should show the plant off in the best light. Let the buyer see clean work spaces, well organized inventory, efficient assembly areas, and offices that function and thrive, not shells of empty cubicles with desks piled high with storage boxes and discarded computers. The tour for a buyer is as critical as a sample product for a customer.

comment(s) | Read the full post

Web Content

Posted by Jeff Muir on 18 January 2017 | Comments

The second most popular question from buyers after “when can we meet the owners?” is “what is their web address?”  A company’s website can say a lot about the company to a buyer, not all of it intentional.

comment(s) | Read the full post

Unreported Cash / Barter Transactions

Posted by David Humphrey on 7 December 2016 | Comments

Being a business owner can provide an owner the opportunity to meet interesting people, many owners of other businesses as well. Some of these owners may become customers. From time to time, the owner then becomes a customer of his customer, an arrangement good for both businesses. However, when this occurs there is the temptation to trade products rather than follow normal billing practices and exchange of payment. This practice is typically not in an owner’s best interest for several reasons.

comment(s) | Read the full post

Noise

Posted by Jeff Muir on 15 November 2016 | Comments

Noise is defined as “sound that is loud, unpleasant, unexpected or undesired”.  In a business context it means something or a series of things going on around the business that distracts everyone from accomplishing goals and objectives. 

comment(s) | Read the full post

Trusting The Inventory

Posted by David Humphrey on 19 October 2016 | Comments

During a site visit to the business, the buyer says to the owner, “How much inventory is in this warehouse?”

comment(s) | Read the full post

Licenses & Permits

Posted by Jeffrey Muir on 27 September 2016 | Comments

Most business owners enjoy one or more aspects of running their business; product development, sales, financial management or operations.  Rare is the business owner who enjoys the rules, regulations and paperwork required to maintain a business.  Licenses and Permits are a “necessary evil” of running a business. 

comment(s) | Read the full post

Capitalize on the Trends

Posted by David Humphrey on 14 September 2016 | Comments

Trends tell a story, not necessarily the whole story, but they do convey a very strong message to buyers. Five-year trends in revenue and profits are especially important and should be carefully managed to the extent possible in the years leading up to a sale.   All businesses go through cycles – sometimes these cycles are driven by forces of nature (a snowy winter / a warm winter), the national or regional economy (improving / in recession) or company specific events (gain or loss of a specific customer). 

comment(s) | Read the full post

Real Estate Leases

Posted by Jeff Muir on 8 March 2017 | Comments

The typical business owner doesn’t worry about a real estate lease except when it is created or when it is time to renew.  In some cases the renewal process consists of a one-page addendum signed by both parties agreeing to a new monthly rent and an extended term with other provisions carrying over from the existing lease.  This quick renewal can have unintended consequences during the late stage of the business sale transaction.

comment(s) | Read the full post

It's not about you

Posted by David Humphrey on 28 February 2017 | Comments

The sale of your company is not about you.  Well, it probably is, but that should not be the focus during the sales process. Think like the buyer; investors are looking to buy a business, an engine that generates revenues and profits separate and distinct from the value a retiring owner contributes to the business.  

comment(s) | Read the full post

Staff Retention

Posted by Jeff Muir on 10 February 2017 | Comments

Many owners highlight that their business is a great place to work by pointing to their employee retention. With pride they mention the number of employees who have been with them for more than twenty years and even the occasional thirty-year pin they awarded. If the workforce is large and this long-term retention applies to a small percentage of employees while there is a strong mix of ages among the rest of the team, this is truly a feather in the owner’s cap, a strong testament to the company as a great place to work. Think like the buyer; if the team is predominately older, especially in the management ranks, the buyer sees three potential problems:

comment(s) | Read the full post

Enhance the Presentation

Posted by David Humphrey on 1 February 2017 | Comments

When working with buyers, you are in sales mode all the time—from the initial contact to an on-site tour to meetings even after the deal is struck. Make each contact with the buyer positive. The initial tour should show the plant off in the best light. Let the buyer see clean work spaces, well organized inventory, efficient assembly areas, and offices that function and thrive, not shells of empty cubicles with desks piled high with storage boxes and discarded computers. The tour for a buyer is as critical as a sample product for a customer.

comment(s) | Read the full post

Web Content

Posted by Jeff Muir on 18 January 2017 | Comments

The second most popular question from buyers after “when can we meet the owners?” is “what is their web address?”  A company’s website can say a lot about the company to a buyer, not all of it intentional.

comment(s) | Read the full post

Unreported Cash / Barter Transactions

Posted by David Humphrey on 7 December 2016 | Comments

Being a business owner can provide an owner the opportunity to meet interesting people, many owners of other businesses as well. Some of these owners may become customers. From time to time, the owner then becomes a customer of his customer, an arrangement good for both businesses. However, when this occurs there is the temptation to trade products rather than follow normal billing practices and exchange of payment. This practice is typically not in an owner’s best interest for several reasons.

comment(s) | Read the full post

Noise

Posted by Jeff Muir on 15 November 2016 | Comments

Noise is defined as “sound that is loud, unpleasant, unexpected or undesired”.  In a business context it means something or a series of things going on around the business that distracts everyone from accomplishing goals and objectives. 

comment(s) | Read the full post

Trusting The Inventory

Posted by David Humphrey on 19 October 2016 | Comments

During a site visit to the business, the buyer says to the owner, “How much inventory is in this warehouse?”

comment(s) | Read the full post

Licenses & Permits

Posted by Jeffrey Muir on 27 September 2016 | Comments

Most business owners enjoy one or more aspects of running their business; product development, sales, financial management or operations.  Rare is the business owner who enjoys the rules, regulations and paperwork required to maintain a business.  Licenses and Permits are a “necessary evil” of running a business. 

comment(s) | Read the full post

Capitalize on the Trends

Posted by David Humphrey on 14 September 2016 | Comments

Trends tell a story, not necessarily the whole story, but they do convey a very strong message to buyers. Five-year trends in revenue and profits are especially important and should be carefully managed to the extent possible in the years leading up to a sale.   All businesses go through cycles – sometimes these cycles are driven by forces of nature (a snowy winter / a warm winter), the national or regional economy (improving / in recession) or company specific events (gain or loss of a specific customer). 

comment(s) | Read the full post