Part 4

Selling your business, which is perhaps your largest asset, can be a difficult decision. It has been part of you and part of your family. It has been good to you like an old friend. You have loved it – you have cursed it – you have nurtured it, you have seen it from birth through the teen years and into maturity. Unlike us, it can live for generations – though the time will come when it must change hands.

When the cycle of business and our personal circumstances begin to herald the transition, it should be addressed in order to realize the financial security for which it was created.

In this series of blog posts I’ve been discussing the 10 signs that it might be time to sell your business.   The first sign is when the enthusiasm for the business has diminished.  A changing marketplace can also be a sign it’s time to exit, as can a risk/reward imbalance.

Sign #4 – A Change Would Be Good For the Family

Many have experienced the challenges of a family run business. As the succeeding generation grows into personal and business maturity, it may be time for a generational transfer of ownership. A recapitalization with a Private Equity Group as a financial partner can allow the founding shareholders to take the lion’s share of the business value in cash at closing, while the succeeding generation reinvests (through a small amount of the proceeds) for a meaningful share of the company going forward. The company would also have access to growth capital. How great would it be to again have a family relationship that is not encroached upon by business? Is the business stealing time from your kids? Are you trading memories for dollars? Many business owners have delayed a sale in spite of the concerns of a loving spouse who desires a different and better life for themselves.

Posted by Bob Contaldo.

No written history of the United States and the world will be complete without reference to and reverence for Steve Jobs. His visionary creation and leadership of Apple, Inc., his technology innovations and their revolutionary impact on our world, will be felt forever because of Steve Jobs.

His unique ability was to share his vision for creating great products that provided truly satisfying experiences for their users. He never stopped innovating, but rather continued to challenge himself and his colleagues at Apple Inc. to design, develop and deliver a continuous stream of blockbuster products. He set the standards for personal computing, movie animation, telephony, music enjoyment, and elegant design.

What an enormous contribution to mankind. And what a lesson about living your passion for everyone.

For me his greatest contribution was the originality of his ideas, his daring to articulate his own vision and his refusal to let others set his agenda.

Steve Jobs will inspire billions forever. What a legacy!

Posted by Peter Moore.

DOES YOUR COMPANY HAVE ONE OR MORE OF THESE POTENTIALLY FATAL ISSUES TO SELLING A COMPANY?

As we enter the second half of 2011, many companies’ sales and earnings are recovering.  For the first time since 2008, owners are seriously thinking of selling.

This is a good time, too, for private company owners to be selling.  Public companies (strategic buyers) have over $1,800 billion of cash sitting on their balance sheets and private equity funds (financial buyers) have over $500 billion in cash they need to invest.  In addition, banks have some $900 billion in excess cash to help both types of buyers to finance those acquisitions.

Owners who are preparing to sell need to be careful of what we call the five Deal Killers.  These are company attributes that can stop buyers cold when they look at a deal.  Deal Killers are not always fatal if company owners recognize them and take action ahead of time to reduce their effect. Read more »

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