The last item is the most perplexing for small-timers. It means sacrificing personal indulgence for profit retention and, yes, paying taxes. No buyer wants to deal with add-backs. It means changing corporate status to "C," methods of selling (from job to contract to content/distribution management) and investment in IT tools to accomplish these ends. Your trade association should be involved. The PBBA, for example, and this writer to be specific, have the ear of acquirers and the experience in the process. Stay away from high-retainer franchise-type M&A companies that don't know you, your industry or any potential partners of acquirers. Dressing up your business for sale is a long-term process and should commence immediately.
- People:
- Vincent Mallardi
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at vince@pbba.org