The Business Owner » Management

The Ideal Situation for a Management Buyout

Stephanie — Mon, 22 Feb 2010 17:19:23 +0000

Thousands of sources of equity capital in the U.S. and around the world are willing and able to pay top dollar for great companies, leave the tenured management in place, provide meaningful ownership to the manager or management team that remains, and mentor and support the new owner-managers in continuing to grow the business. This is the type of transaction Acquisition Advisors specializes in and is proud to bring about.

Ideal candidates for this type of transaction have the following characteristics:

The business is in the United States.

The business is well-established, healthy and earning annual EBITDA of $2 million to $25 million.

The current owner wishes to sell but does not need to sell.

The current owner wants top dollar, but such is not his/her only goal in the sale. Particularly, the seller also wants to:

“Take care” of his/her employees (and secure higher ownership for the key manager(s) to the extent possible.

Do his/her best to place the business in a position where it has a good chance of continuing to succeed.

See the business continue to be in the facility and/or community it currently is in.

“People Strategy” Important for Businesses, Business Plans

Stephanie — Sat, 07 Nov 2009 14:37:19 +0000

While I was attending a Great Place to Work Institute conference, an organizational consultant spoke about a client that displayed posters throughout its offices with the message “Our valued employees are always treated with trust and respect,” yet the employees underwent security searches before entering each day. This was an unusual practice for a civilian organization with only “normal” security concerns. The consultant questioned the leaders about the conflicting messages. The organization discontinued the searches.

The Key to Enduring Business Growth and Success

Stephanie — Wed, 07 Oct 2009 15:00:24 +0000

Continuous investment is the one absolute key to a successful business. Take Microsoft, Intel, Caterpillar and Nike as prime examples. All of these companies reinvest major amounts of their revenue and annual profit to build a stronger, more profitable business. When you invest, you delay gratification and forego the enjoyment of something else – usually dollars – in exchange for potentially higher rewards in the future. Heed this advice and your business will stand the test of time.

Do You Have the Eyes of a Leader?

Stephanie — Thu, 01 Oct 2009 17:15:01 +0000

Good eye contact with business associates and employees can go a long way to accomplishing your goals. People won’t listen and believe unless they see something of importance and that begins with good eye contact, which demonstrates confidence and your ability to lead. Good eye contact, especially when listening, is the trait of an effective leader and communicator.

Interest Free Loans Now Available

Stephanie — Wed, 01 Jul 2009 19:50:15 +0000

$35,000 interest-free loans are now available to small businesses as part of the America’s Recovery Capital loan program approved by Congress in February. The loans are for small businesses that have been profitable one of the last two years, but are not struggling. The SBA will pay lenders the prime rate plus 2%. All SBA fees will be waived and the U.S. government will provide lenders a 100% guarantee on the principal amount in case of default by the business.

Message to Business Owners Trying to Restructure

Stephanie — Fri, 01 May 2009 21:27:40 +0000

Are you under extreme financial pressure? Desperate to restructure your debt (personal or business)?

Eight Ways to Maximize Your Odds of Getting Paid

Stephanie — Fri, 01 May 2009 21:17:45 +0000

Get Your Agreements in Writing. Oral contracts leave lots of room for misunderstanding and tend to change when the going gets tough.

Competitive Intelligence: A Strategic Imperative

Stephanie — Fri, 01 May 2009 21:15:17 +0000

When your customers choose your firm, are they making the right choice? This question should not be offensive. As the owner of a small business, you should know the answer to this simple question, and your answer should be based on fact rather than bravado.

Sowing Seeds of Future Financial Demise

Stephanie — Fri, 01 May 2009 14:31:39 +0000

It is impossible to negotiate effectively when you have few, or no, options. If you are not willing to walk away.

Peer Benchmarking: How to Get Started

Stephanie — Fri, 01 May 2009 14:26:19 +0000

If they can do it, we can too, right?