You have been successful in your business… But:
Conditions seem to be going in the wrong direction for the foreseeable future. You’ve been finding yourself increasingly frustrated by and struggling with what now seeming more like a “bag of troubles”.
You admit first to yourself then say openly to others: “maybe it is time to find a buyer”, (and get out while I still can).
If that has a familiar ring to it… don’t be surprised, we certainly aren’t…
In fact we hear this a lot from our clients when they explain why they have been referred to, or just call us.
A recently completed survey of businesses actively For Sale, over 50% listed:
- “Retirement” and/or “Owner wants to pursue other interests”, as the reason.
- Further analysis of those businesses revealed that almost three quarters of them were deficient in at least one of these: Cash flow, Revenue, Profits, and in many, all three.
When those conditions continue for more than a few months or at most a few quarters, the condition can begin to look like a trend rather than just a “bad patch”.
When your business is trending downward without successful intervention it will next be on what we call “the slippery slope”. Neither status is a good time to look for a buyer. It is a good time to seek advice on ways to improve the situation. Unless of course, you are willing to sell at a “Fire Sale Price” to someone else who says or thinks, “they can fix it”.
To actually receive a settlement value you may have considered satisfactory a couple of years ago, you will need to improve your business at least enough that it has a positive potential going forward.
Please pardon, or skip the following analogy… however, sometimes they help:
When you go to sell your SUV… after it’s been through a rocky, muddy off-road experience…
- First get it back, running on the road… it won’t fetch much stuck in the mud.
- Take it through the car wash.
- A thorough cleaning of the interior will likely help it’s appeal.
- That engine compartment might be a target for some attention as well. The engine and drive-train may need some serious mechanical help.
All points above are obvious, but the exact, best steps to take when it’s a business might be much harder to identify, particularly when you’ve become accustomed to conditions that a professional review would likely uncover as critical issues. Also as you well know, just running a healthy business is a full time job, managing a crisis or nearly one, is another full time job.
It is therefore an excellent time to seriously consider getting some help to recover your footing, step off the slope and then with a brighter outlook, sell the healthier prospective. You will much more likely get closer to the value you had believed it should be worth.
If you would like some suggestions and advice for your particular situation, you are welcome…
We are just a phone call away: Ask for me at 203-226-9429
