Perception vs Reality with Small Businesses

Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners. Nearly every owner we speak to is out straight.

Sometimes the economic picture on the news seems inconsistent with what is happening for many business owners.

One of our key sectors for engagement is manufacturing in New England, and other companies that produce components and distribute key supplies.

Nearly everyone we speak to is out straight. When asked about how things are shaping up this year, we get the following:

  • A larger than normal backlog of orders.
  • Delivery times are being pushed out.
  • More help is needed but jobs are hard to fill.
  • Materials are hard to get.
  • Owners are stocking up their inventory or crucial items.

These point to a banner year.

Even so, we get this question: Is now a good time to sell?

The answer is yes. Good businesses will attract buyers in a wide range of economic conditions. History shows that it is nearly impossible to “time the market.” A good company will attract attention.

Our mission is to transition ownership of private New England companies in the lower mid-market. We believe strongly in this sector.

Census data indicates the vast majority of Americans work in small businesses, and a sizable number of these are companies with less than 20 employees. So why do we only hear on the news about the stock performance of conglomerates? That’s because most small companies are privately owned and data is not widely available.

We know companies in this sector make a difference in the lives of our neighbors.

Companies in the lower mid-market are often key suppliers of components and materials to larger entities. With the movement towards reshoring of production, this supplier role will become even more critical in the years ahead.

These businesses often provide excellent pay, and good benefits and often provide on the job training to those just entering the fields.

We have been checking in with companies we sold in recent years and found the following:

  • Employment has increased.
  • Hefty investments have been made.
  • Businesses are growing with new energy.

Our approach in selling is strategic. We actively seek buyers. We build a market for the company.

Is this the best time to sell? Our answer is yes. Buyers are in the market with capital to deploy. If you are ready to begin the process of transitioning ownership, let’s talk. Soon.

What our clients are saying...

“It is a privilege to write a letter of recommendation on behalf of Business Transition Strategies. …As with any family business, negotiations need to be handled delicately and, as with any sale, both parties need to be satisfied with the end result. Quite frankly, without their help, this could not have been achieved. John Howe and Ken Schaefer skillfully analyzed the books and were able to bridge the gap between the sellers’ belief of what the company was worth and its actual worth. Their style is objective, straightforward, thorough and kind in the delivery of their assessment. After the sale was achieved to both parties’ satisfaction, John and Ken were hired to help with the adjustment of the acquisition and the financial health of the company moving forward. I can highly recommend this talented group of experienced business advisors to any company in need of clear and thoughtful company planning and adjustments.”

- Jane Longden

Decora