At this point in the case study, six weeks after the date of acquisition, we see that cash flow from the acquisition is starting to appear on the books – mainly because the deal allowed receivables to remain with the vendor. This is not uncommon.
The all-important question about whether cash flow and revenue can be maintained as per the initial projections – has been answered. And it looks like it’s the case. Great news.
In other words, we can draw two conclusions:
There is another interesting action item that my client has learned over the years. “Keep the old brand in place until six months or a year later.” Keep things as smooth as possible for the existing customers. Keep the old company name. Keep the procedures as regular and comfortable as...
Our focus today was an update on various acquisitions and acquisition plans – it’s a vast chessboard of options and scenarios.
This is exactly what makes the art of business so exciting and – honestly – so complex!
Here’s an example of some of the complicated matters going on:
This week the client and I discussed the kinds of surprises you might find when you first take over a business you’ve purchased.
Were there any?
Well, yes – but nothing too shocking.
An ODD thing to say! Why is it relevant today?
The top of mind issue today was the shortage of steel and thus the delays (and costs) of obtaining “blanks” for in-house blades.
That could be a surprise for the listener because we’ve been talking for weeks now about the acquisition deal that is taking a long time to close, the idea of an equipment acquisition from a shop that is closing, and a number of other topics.
And we can today quickly set that all aside because:
It’s like a little leading indicator. A shortage of steel is a thing? What does it mean?
Well, here’s what I...
This is the situation today. We took a two-week break because of family visits to the home of my client – family that included “the marketing brother” and his family. This meant that a lot of good behind the scenes business discussions were going on. So the break from this case study was fine.
If I were to specify a theme for today’s update, there would be three points (see below) that I would summarize as:
“Be patient; Be conservative financially; Delegate more.”
Or, to give a bit more detail:
*THINGS ARE ON TRACK BUT MOVING SLOWLY. PATIENCE IS STILL A VIRTUE, PARTICULARLY IN BUSINESS!
*BANK IS SUPPORTING THIS ENTERPRISE. WHY? LOTS OF REASONS BUT ONE IS A LONG HISTORY OF PRUDENT OPERATIONS!
*THE OWNER STILL DOES THINGS THAT NO ONE ELSE KNOWS HOW TO DO. LET US HOPE THAT NO ONE GETS HIT BY A BUS UNTIL THIS IS SOLVED!
Here is a summary of our talk on how to create weekly metrics on business performance in a “dashboard” style report.
Today’s topic is the “fireside chat” every founder should have with successors.
It happened when I asked a few questions about how the client really felt about the readiness of his successors to take over the business – even with an orderly, well-planned transition.
What came out was not only interesting but also foundational for a succession plan win.
Today we discussed something that often happens in business – the surprise (pleasant) call to get new business from a competitor going out of business.
My client initially looked at this potential acquisition but for a number of reasons that became apparent on a due diligence visit – passed on the deal.
Now the operator has decided that he has no real successor and the market for this type of business operator is limited. Thus, with no real prospect of an internal succession plan taking effect, he’s decided to approach my client.
My client, of course, is looking at this seriously and likes the equipment and the high probability of getting the entire customer list – all for a...
In today’s work session we spoke of two exciting trends in this family business:
Why do I call it exciting?
It’s because what’s happening is something we often see in a business that is based on a good solid foundation. This business is not built on sand. It’s really built on a solid rock foundation!
Solid foundation businesses grow in step-wise fashion. They rarely grow on a steady percentage increase in sales every year. If that were the case for most businesses we would see ordinary organic growth resulting from ordinary, steady activities such as sales, product improvements, or gains in efficiency.
Rarely have I seen what I am about to tell you today.
Hang on to your hat! This is a very rare combination of factors. For these factors to come together at a single point in time is not only exciting, but also sure to create a very attractive business.
This is a story of five different kinds of growth going...
*SPECIAL NOTE FOR TODAY:
WE’VE REACHED THE HALF WAY POINT OF OUR 52-WEEK CASE STUDY! SEE WHAT WE’VE LEARNED TO DATE!
First, here are the results of today’s work session:
Now, the grand summary at the halfway point! Here are the lessons I would pass on to you that represent the realities of life in small business in Middle America.