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...

“New Image Coatings, owners of Seal-Once, retained Business Transition Strategies in April of 2015 to locate a strategic buyer for the company. This was successfully completed during April of 2016 when we were acquired by UC Coatings of Buffalo, New York. Working at our side throughout this process were John Howe director, and Ken Schaefer, deputy director, of Business Transition Strategies. From the start of the project, where the information memorandum was developed, to helping us create the management presentation to acquirers, through negotiating the letter of intent and then the definitive agreement, they were there with me and our professional team every step of the way. It took nearly one year to the day to complete the project, but they never lost focus on my best interests and helped me keep my eye on business. This sale was very complex. It included transfer of trade secrets from the product developer, …as well as the transfer of a manufacturing and licensing agreement we had with the core compound producer… John and Ken marketed the company to a range of strategic acquirers, including a number of private equity groups and their platform companies, which ultimately resulted in an agreement with United Coatings… BTS’s level of expertise in the process and close attention to detail enabled us to successfully navigate the deal. I would recommend John Howe and Ken Schaefer to any company owner considering selling.”

- Hank Croteau

New Image Coatings