Articles and White Papers
"Surviving the Recession Now
...and Gaining Even Greater Benefits in the Future - Improving Profitability"
By Roman Fedirka, Fedirka Associates, Inc.
The fundamental principles of a successful business never change things just become more magnified when the economy is working against you. When you're busy putting out fires every day, it's difficult to even think about assessing the health of your business or to make necessary changes.
You might think that seeking out new market opportunities and customers, reorganizing your personnel, changing delivery patterns and methods, modifying the storage of materials, restructuring plant layout, etc. should be done when things are running smoothly and profitably. Not so. Besides, why make changes when you are succeeding and "hitting on all cylinders?" When times are good, it's very easy to become complacent— which can only lead to trouble. Economic downturns are the ideal time to explore new opportunities and ways of doing things. One thing's for sure a company whose sales are decreasing or remaining stagnant could be a Dying company...
Article from 422 Business Advisor:
It is somewhat ironic that Roman Fedirka (president of Fedirka Associates), and his team of dynamic, independent, experienced business consultants, with their extensive history of successfully resolving just about any challenge a business may encounter, face a challenge of their own making. "The biggest problem I've had is defining what we do," Mr. Fedirka explains.
"We're business people. We have been successful in our endeavors in corporate America, in running businesses for other people. We've also been successful in running our own businesses. We are now assisting entrepreneurial America to do a better job, by building on what we've done successfully in the past, and integrating ideas from other industries."
Neutralize the Skeletons in your Closet and Sell your Closely-Held Business.
When it's time for owners of closely-held businesses to sell their company, many don't have the stomach for neutralizing the skeletons in their closet. Owners should be prepared to disclose everything. In the course of the buyer's due diligence, everything necessarily will come out, so owners would be well-advised to resign themselves to this and be preemptive about fixing the skeletons. Otherwise, expectations for selling the business will be unrealistic.
It's no surprise then that nearly half of all closely-held businesses have avoided succession planning that would facilitate transferring the business to the next generation of owners; family members, existing partners, management or employees. Owners of closely-held companies must understand that to sell their business and maximize its value, they should first make ready their company by neutralizing both the visible and the hidden skeletons.
Some skeletons may be perceived only as minor embarrassments to the seller, but for whatever reason they can be a real turn-off for the buyer. Even if they are small, fix them. The more troublesome ones may require the help of a professional advisor, experienced with mergers and acquisitions and with owners of closely-held businesses. This professional can dispassionately peer into the financial statements, assess the operation, ask questions of management, investigate and report back regarding the skeleton's impact on the disposition...