In our previous blogs we expandedon Terry Campie’s “Buy to Sell” strategy of owning a business. We highly suggest you consult Terry Campie for a business-specific strategy for you. This nontraditional approach of owning and operating a businessputs first the sale of your business while simultaneously maximizing your current profitability.
Terry Campie says in the past business owners simply went about their business (pardon the pun!)maximizing profit assuming when it’s a time to sell their company that will be enough to get the best price. Terry Campie suggests this is short-sided for several reasons.
First says Campie, often we think that we build our company then either “my kids will take it over” or “I’ll just sell it.” Often how we run our company vastly differ depending on what we think will happen when we are ready to move on.
Terry Campie gives this admittedly simplistic example. For instance, you are running your company and your only child, your daughter,grows up and all during that time you assumed she would take over the business. Then she gets married, becomes a medical doctor, or missionary in Sudan.For years, you operated the business tailored for her as the successor.
But exactly does that mean operating a business “tailored for her as a successor’?We approach our business decisions with a goal or goals in mind. Terry M. Campie says, subliminally if we are hopeful succession will go one way, in this example to our daughter, and when that doesn’t happen, we have inadvertently poised our company for the buying market in a less thanoptimal position.
In this example, Campie explains some ways you might operate the company with this example’ssuccession plan in mind you may emphasize affirmative action, or despite of industry standards purchase manufacturing equipment one way you choose equipmentthataccommodates women, based on their generally smaller size(this is not a gender discussion!), or any decision based on a pre-planned succession plan that does not materialize.
Depending how many of these decisions that are outside what a potential buyer might prefer for integrationinto their company hurts the ultimate maximum selling value to the buying company.
Terry Marshall Campie suggests the market is ruthless and pays the highest price for a company that is NOT political but satisfies the buying company’s need for growth. Business decisions satisfying alternative goals costs the seller by negatively affecting the highest price their company would command in the open market.
Terry Campie will explain more of the “Buy to Sell” strategy and genuine results of companies he has owned in a future blog.To know more about this strategy. See Terry Marshall Campie’s net Blog at www.Campie.com, or www.TerryCampie.com. And as always, Terry Campie says, “Seek Jesus!”