Companies can be in trouble or headed for it for many reasons. However, most of them can be linked to one or more of the following:
• Lack of proper focus
• Poor management
• Poor financial controls
• Loss of key employee(s)
• Loss of important customer(s)/client(s)
• Not keeping up with technology
• Quality control or other operating issues
• Legal or governmental issues
• Target market change or shift
• Competition
Unfortunately, by the time a business owner realizes that the business is in trouble and recognizes why, it may already be too late. The obvious solutions are to either fix it or sell it. The decision should be made quickly, since time may be of the essence.
Unfortunately, too many owners of privately held businesses wait too long. A decision to sell should be made when the business is doing well, not when it is in trouble.
Now may be the time to check with a professional intermediary to see what you can do to prepare your business for sale.
