In The E-Myth Revisited, author Michael Gerber suggests that each business owner has three personalities: entrepreneur, manager, and technician. For many, the technician is the dominant type. These owners are skilled tradespeople, scientists, and service professionals, and they excel at the hands-on work of their company.
A sudden death or disability is a tragedy we hope never to face. But planning for those tragedies is a necessary part of life. If we don’t, we leave behind a legacy of stress and confusion for those we care about most. If you own a business, a contingency plan is critical for the sake of your family and for everyone else who depends on your organization.
It’s not easy to have the tough conversations. But as business owners, we need the courage to confront problems, particularly when we see something that goes against our core values. Failing to address issue areas can lead to dysfunction, toxic work environments, and weakened business value.
Love is blind, so the saying goes. I’m certainly not going to suggest I’ve ever seen friends make questionable choices in their love life, but I have seen business buyers so enamored with an opportunity that they either ignored certain warning signs or willfully chose not to look.
In today’s marketplace, if you’re not growing, you’re going backwards. According to a new Ernst & Young report, a whopping 69 percent of U.S. CEOs plan to grow through acquisition this year. Driving the trend are increased confidence in economic growth and the availability of capital.
Growing companies constantly seek growth opportunities, whether by entering new markets or unveiling new products and services. Each opportunity demands thoughtful communication that helps stakeholders see the value of the transaction and supports the deal to a satisfying conclusion. The right communication strategy gives you control over the narrative, and can even increase the value of the deal. Follow these six best practices.
Paul Simon says, “There must be 50 ways to leave your lover.” There may not be quite that many ways to leave your business, but these are some of the more common:
With the summer months coming up, DealCoach & Cornerstone Business Services’ Scott Bushkie wrote a timely article for the Green Bay Press-Gazette highlighting the importance of time away and how that enhances the value of your business. Whether it’s a family trip to a cabin or a long weekend for a child’s soccer tournament – that time away gives your management team a chance build trust and help you move the business forward.
There will be a learning curve, no doubt. But take those bumps in the road to learn and coach your team, and in the long run – when you’re transitioning out and are ready to exit – there will be more interest in your business.
You can read the article here.
Warren Buffet once said, “It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.” I certainly think he’s right.
Working with our buy-side division, of course we understand that everyone wants to get a great deal. They want to find that perfect company and get it at a four-multiple when the market is running closer to six. We’ve seen clients walk away from perfect deals that hit all of their requirements, only because they wanted to buy below market.
By. Scott Bushkie
As an owner, one way to maximize value in your business is to demonstrate that you’re not the smartest person in the room. In an ideal state, you work yourself out of a job, moving on to an advisory role while your management team runs day-to-day operations.
With that said, it’s equally important that your goals and values are in sync with your managers’. When selling a business, you want to show buyers a positive work culture in which team members work well together and make each other better.
By Scott Bushkie – CBI, M&A Advisor