The impact of mergers and acquisitions have taken a toll on the service industry. Many owners of midsize to small companies are now finding it hard to compete with the international and national competitions. Quite frankly efforts are being made to drive the smaller companies out of business through acquisitions
Many service providers have done well for themselves when selling their business. They had a growth trend, strong net profit, a sales program in place and a low risk client base along with competitive wages and benefits for their personnel. Even more important they had readily available copies of service contracts, P & L's, past few years tax records, billing and pay rates and A/R & A/P records to name the most important ones.
There is an equal amount of service providers who have not done so well or find themselves in a position where there is not another company interested in acquiring them unless it is at a "fire sale' rate. Why is this you ask? Well in many cases we have found the owners have "already sold the company to themselves" over the years. Failure to invest back into the company, poor technology as it relates to operations and financial records and neglect of essential records are the biggest reasons potential buyers back away in a hurry. We found these companies most likely are trending down sales wise, have no formal marketing or sales plan, non-existent or haphazard financial records and their client contracts are old or do not exist.
If you are contemplating a succession plan in the near future or not if you find yourself in the poor situation described above it's not too late to turn your company around to make it a viable candidate for acquisition or in a much stronger position should you decide to hand it over to the next generation. Kuty & Associates has the ability to completely review your financial, marketing and operational procedures and strategies and make recommendations for improvement. If you follow our path to success you will improve your company's bottom line. So, whether you sell or keep the company in you will be in much better shape in the future then you are today.
Contact Gary at firstname.lastname@example.org to find out how we can assist you.