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...

“Regarding our working relationship with Business Transition Strategies. After 32 years of continuous growth we hit 2009 & 2010 and like many companies we went flat and in 2010 had our first loss. At this point we knew we had to make changes if we where to succeed in this new economic environment. Business Transition Strategies (BTS), particularly John Howe and Ken Schaefer, were brought on as consultants. The BTS team came in, evaluated everything in a professional and thankfully non-threatening manner. They interacted with all employees and our professional partners. Once this was done they presented their findings to the executive group and gave very specific suggestions for improvements. This done and a plan in place, John & Ken continued to help us move forward and implement changes and make adjustments where needed. I am happy to say we are back to being a growing and profitable business and I believe BTS played a big part in making this happen. I would recommend to anyone that they include BTS as part of their business plans for the future.”

- Christina

Advisory Client