A dishonest business owner discovers the domino effect … the hard way. Early in my career I was selling a mid-sized restaurant in a shopping mall. It was a nice restaurant, family style, licensed, table seating of a hundred and twenty with ten bar stools. The statements showed a reasonable profit, not great, but reasonable.…
Perception Is Everything We were called in one day to look at a company that was in the specialized trucking business. Milt had forty trucks and substantial customers. He was thirty-seven or thirty-eight years old and looked like he was fifty. And as I got to know him, I found out that he worked roughly…
An old Chinese proverb says, “He who speaks first, loses.” Consequently, I always advise my clients to simply answer any questions put to them by the purchaser during negotiations, without offering any additional information or overtures. I tell them that when the purchaser is allowed to speak first, we can assess the proposals as they…
A professional practice is a business, just like any other, and partnerships are prone to fail. The cost of setting up the correct structure for operating and ultimately terminating the partnership is relatively inexpensive compared with the cost of unraveling a relationship that no longer meets the original needs, not to mention the emotional cost.…
It was time for Ned to retire from the family business. But Ned didn’t have an exit strategy, so he came to us. He and his wife, Joanne, had three children – two sons and a daughter. All three siblings were married. All three worked in the business with Mom and Dad. It was a profitable business.…
An owner, Jackson, approached us to sell his small machine shop. It was absolutely pristine, located in a brand new 10,000-square-foot building, situated in a farmer’s green ten-acre field. It also featured a paved driveway and parking lot and was well landscaped. We recommended that a phase one Environmental Impact Study be done prior to…
Confidentiality is one of the most important things for a business owner to consider when it’s time to sell. In fact, as our experience has shown us time and time again, sellers who maintain a very high level of confidentiality are much more likely to get a favourable amount for their company. If you have been…
How to Fill Those Sixty Hours? Selling the business isn’t an end. It’s a beginning. But the beginning of what? If business owners fail to see what’s out there for them if they sell, they will prefer to stay in that protective trench of their business. It’s important for such owners to have a clear…
Most small to medium-sized businesses are privately owned and operated by an entrepreneur who is busy keeping track of the day-to-day affairs of the business. Usually overworked, sometimes careless or lazy, such entrepreneurs rarely have a long-term plan for the future of their company. As a result, they may fail to recognize opportunities that are…