Green Merger News – December 2012 #2

Some Things to Think About”Between The Holidays”

 

This year I thought I would share some thoughts “between the holidays” at the end of 2012.

This time of year, many business owners take the opportunity to both look backward over the year that is coming to a close and to look forward and make plans for the coming year.  There is certainly no shortage of articles in trade magazines, blog posts or webinars on various aspects of strategic planning.

One of the topics we hope you are including in your strategic planning is the subject of exit planning.  While relatively few green industry business owners are currently planning the sale of their business in the near future, the reality is that all of us must recognize that our businesses will transition to new owners at some point – through a transfer to family members, a sale to employees or a third-party sale.  The only alternative is to go out of business.  Each alternative requires planning to achieve the objectives that you as the business owner have.   While our expectations may be that the time for a transition is out there somewhere in the future – five, ten or twenty years, the reality is that for some, the time will come much more quickly than we expect – for a whole variety of reasons.  So you may not have as much time to leave your exit strategy on the backburner as you currently believe.

In the event you have a little down time now, here are some things that you can do to make a positive beginning.

One – Begin to clarify your own objectives regarding business transition.  In a perfect world, how long would you want to maintain your ownership and stay active in the leadership role of your business?  Do you know who you would like to transition your business to?  Have you discussed your plans with them?  Do you understand the likely economic impact, after taxes of a transaction?

Two – Do you understand the value of your business?  Many business owners have serious misconceptions about the value of their business based on what they have heard on the street.  They may have heard simple rules of thumb about business value without really understanding how these rules may be applied in their own situation.  Of course, what you have heard that another business owner received for his or her business may not be accurate or the whole story.  It is also sometimes difficult for a business owner to understand the value drivers of his or her business and understand how they compare to another business?

Three – Do you have a plan to improve the value of your business?   That is one of the bright spots of exit planning, because the same efforts that improve the value of your business will likely  make it a better, stronger business even if you have no current plans for a business transition.

Four – Do you have a plan to preserve the value of your business?  In most cases, a business is the business owner’s largest asset.  What would happen to your business is the event of a natural disaster?  (Think Hurricane Sandy)  What would happen to your business if you died or became disabled or for some reason were not able to give leadership to the business for an extended period?  Are there people, inside or outside of your business that could provide leadership in your absence?  Have you discussed the subject with them?  Developing a disaster plan may be one of the best insurance policies you could ever buy.

Also, during this time of the year, business owners may be contemplating a more immediate transition of their businesses.  Others may be contemplating a business acquisition strategy.

If you are thinking about any of these things, we would welcome the opportunity to speak with you.

.

-Ron Edmonds

Email me

Call me direct at 901-351-1510

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Image: FreeDigitalPhotos.net

Do You Understand the Value of Your Business?

Consider a Market Value Assessment

 

Understanding the Value of Your Business is an important step in the Exit Planning Process.  Most business owners do not have a clear idea of the value of their business or understand the important factors that drive that value.  Understanding the value of your business will help you plan for the future and will also allow you as a business owner to take constructive steps to improve that value over time.

The Prinicpium Group offers a cost-effective approach we call the Market Value Assessment.  The Market Value Assessment provides a valuation for your business based on established methods and industry conditions for planning purposes.  It also will specifically identify importqant factoprs that affect the value of your particular business.

If you are interested in learning more, please click hereemail us or call Ron Edmonds at 901-351-1510.

Preparing to Sell Your Business

New E-Book Available for Download

 

Preparing to Sell Your Business – A Guide for Green Industry Business Owners, a new e-book by Ron Edmonds of The Principium Group has just been published.  The 30 page e-book explores both preparing yourself (as a business owner) to sell your business and preparing your business to be sold.

Preparing to Sell Your Business is available for download  from The Principium Group.  Click here to download it.

Upcoming Webinar:Understanding the Value of Your Business with Ron Edmonds -January 24

 

You are invited to participate in a webinar on  Understanding the Value of Your Business on Jan 24, 2013 at 12:00 PM CST.
Click hereto register.
This webinar will be led by Ron Edmonds of The Principium Group.

In this webinar, Ron Edmonds will unravel one of the most confusing topics for many small business owners.  He will explain the basics of business valuation in the green industry, including the following:
1. Valuation for different purposes.
2. Why rules of thumb don’t work very well.
3. The basic methods of business valuation.
4. The value drivers that will affect the value of your business.
5. Why buyers and sellers may see business valuation differently.
6. The acid test of business valuation.
There will be time for questions and answers as well. You can submit your messages in advance or submit them during the webinar.
Registered participants who listen to the complete webinar and complete the foloow-up survey will be entered intoi a drawing for a half-price market value assessment by The PrincipiumGroup.

Please register for Understanding the Value of Your Business on Jan 24, 2013 12:00 PM CST at:
https://attendee.gotowebinar.com/register/6803746414025579264

 

Upcoming Webinar:

Lessons from The Sellability Score with Ron Edmonds – January 17

 

You are invited to participate in a webinar on  Lessons frm The Sellability Score on Jan 17, 2013 at 12:00 PM CST.

Click here to register.

 

In ths webinar, Ron Edmonds will cover lessons learned over the last year through the Sellability Score program.  The research team at The Sellability Score has analyzed data from over 3,000 companies to identify important trends in business sales.

The specific focus of this webinar will be increasing your odds of receiving an offer for your business.
Ron Edmonds will cover research generated by the team at the Sellability Score about those factors that most affect your ability to get an offer fortb your business.
All participants in this webinar should have already taken The Sellability Score quiz and received their detailed report.

Click on this link to register: https://attendee.gotowebinar.com/register/8347683940272289536

 

 

Books by Ron Edmonds

 

Special Sale on Books by Ron Edmonds

 

This offer is only available for books ordered directly from The Principium Group.  For a limited time, there will be a 20% discount on each book and a 30% discount if you order all three books.  Prices include shipping by First Class Mail.

 

Order online at

www.principiumgroup.com/special-offer/ ‎

 

Green Exit:  Exit Planning for Lawn and Landscape Business Owners

Charting a Course:  Acquisition Strategy in the Green Industry

How to Sell Your Green Business

Also available for Kindle, Nook and iBooks.

Also available from Amazon.com and other online retailers.

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