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When a business owner is considering options to
ownership there are many factors that impact that ultimate decision.
At JB&A we work in helping identify those
motivations and bring about the most desirable outcome for the client. Below is a list of potential reasons why a business owner might
begin to think about selling. One or more of these
might be influencing your decision to consider utilizing the services of
Jerry Baker & Associates.
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The majority of an
independent owner’s worth in their company is
tied up in accounts receivable, inventory, rental equipment, vehicles,
facilities, etc. Many have limited liquidity.
JB&A's objective is to determine the intrinsic value (goodwill) of the
business, which is not shown as an asset on the company's financial
statements.
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Time constraints
involved with the day-to-day operation of the business. As an owner,
there is little time to relax and enjoy the fruits
of your labors.
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It may take you ten to fifteen
years to make after taxes the amount that an owner could receive today from
the sale their business after
taxes. Why take the risk of continued ownership of a business if you cannot
guarantee your future? If you cash out, you then have
total control of your financial future without any concerns about the
day-to-day responsibilities of running a business and the constantly
changing economic conditions.
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The market or industry
that of your business is growing and creating competition.
With regulatory changes there comes the need for
additional education to become compliant. At some point,
this can become burdensome.
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There are no family members
that wish to carry on the business and it is time to consider an
exit strategy to provide for a
well-deserved retirement.
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Pricing of products and services in your industry has become
more competitive. This can be a
difficult environment where your success is determined by factors other than
the quality of your products and services.
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Economic changes and policies may be affecting profitability
of the business. An acquirer may be able to utilize economies of scale
where the independent business owner cannot. It may be time to
protect your investment of time and money
by considering options to ownership.
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The whole reason why you went into business as an
independent was for pride in ownership
and to build financial security for you
and your family. Consolidation
is taking place in your industry segment and you've decided it is time to capitalize on your
hard work by selling your business. There is a window of opportunity
when the value of your business is at a peak. Contact JB&A to assess
if now is that time for your business.
Contact Jerry Baker & Associates today for a consultation to
discuss the value of your business in today's acquisition market. Just as
you are an expert in the details of your business, it is important to have
representation by an expert in dealing with mergers and acquisitions.
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