The Entrepreneur’s Corner

Some business owners are asking themselves a difficult question, “Is now the time to sell?” They missed cashing out in the great run up in value during the middle of the last decade and have worked diligently to restructure in the “new economy.” And they now think this is as good as it’s going to get for a while.

Business owners have devoted significant time and effort in retooling their businesses, only to see their own pay diminish. Or certainly pale in comparison to what they once made. Now with the economy looking like it will take a considerable amount of time to rebound, has a fatigue factor set in? Are owners burnt out and feeling that the effort to rebuild will take too long to pay off?

If you are at that point, how do you determine if your business is salable? First, assess your cash flow. Any business owner has learned over the past three years that cash flow is critical and that will be the starting point for any prospective buyer. If your cash flow is steady and measureable, at least there is a determinable value.

Next, consider the state of your businesses’ records. A potential buyer will want to examine financial information. The more organized and complete, the easier it is for a potential buyer to evaluate what they will be purchasing.

Third, honestly evaluate your revenue trends. If your top line has flattened out, consider what options are available for a new owner. If sales have been decreasing, is there an end in sight or some mitigating factors? A reasonable explanation may make your company more appealing and offer some value to a potential buyer.

Lastly, how transferrable is your business? Do you have customers that would be willing to deal with someone else? A new owner will only pay for a business that will still have customers coming in the door long after you have departed. The more entrenched an owner is with customers, the more difficult a transition will be.

So while it may seem like it’s bad timing, businesses are bought and sold in every market. Both strategic and financial buyers will be searching for opportunities to invest capital that will give them a better than market rate of return. If you can demonstrate that your business is worth a price, a deal can be made. So maybe it is the right time to consider a sale.

Edward T. Blair, CPA is a Partner of Witt Mares, PLC, a regional accounting and business-consulting firm. He is a certified family business advisor who regularly assists businesses with exit strategy decisions. He can be reached by e-mail at .(JavaScript must be enabled to view this email address) or phone at (804) 323-0022.
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Richmond Montessori School earns VAIS reaccreditation


Richmond Montessori School, an independent Montessori school for children ages 2 to 14, recently earned reaccreditation from the Virginia Association of Independent Schools. The VAIS accreditation program is one of only a few recognized at the national level through the National Association of Independent School's Commission on Accreditation and is also recognized and approved by the Virginia Board of Education through the Virginia Council for Private Education. > Read more.

Business in brief


Neil Burton, the founder of Strangeways Brewing in Henrico, will serve on the 2017-18 Leadership Council of The Virginia Craft Brewers Guild (VCBG). Burton will share the chairmanship of the Marketing & Tourism Committee with Kevin Erskine of Coelacanth Brewing. Other local brewers in leadership positions include Eric McKay of Hardywood Park Craft Brewery (VCBG chair), Hunter Smith of Champion Brewing Company (co-chair of the Government Affairs Committee) and Kate Lee of Hardywood (co-chair of the Quality Committee). > Read more.

James River Juvenile Detention Center to graduate its largest class

James River Juvenile Detention Center will celebrate its largest class of high school graduates June 27, as 13 residents receive their high school diploma or GED certificate.

The ceremony will be held at 10 a.m. at the detention center, 3650 Beaumont Road in Powhatan County. The graduates will mark their academic milestone by walking across a stage in a cap and gown before an audience of family members. A reception will follow. > Read more.

Henrico School Board selects redistricting Option E


JUNE 23, 10:30 A.M. – The Henrico County School Board Thursday concluded its latest redistricting process by selecting a plan for middle school redistricting that will impact a number of students in the western and northern parts of the county, as well as a few in Eastern Henrico.

The process sought to reduce overcrowding at Hungary Creek Middle School, create room at Wilder Middle School for a gifted academy and address the poverty level disparity among some middle schools. It will impact about 775 students, according to school system officials. > Read more.

‘Senior Cool Care’ program to help older adults in Metro Richmond


For the 27th year, Senior Connections, The Capital Area Agency on Aging is helping older adults combat summer heat through a program now called "Senior Cool Care" (formerly the Fan Care program) that provides fan and air conditioning units for eligible senior citizens.

The program is available to low-income older adults age 60 and older who reside in the City of Richmond and the counties of Charles City, Chesterfield, Goochland, Hanover, Henrico, New Kent and Powhatan. > Read more.

Henrico Business Bulletin Board

June 2017
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Cat Adoption and Rescue Efforts (CARE) will have cats and kittens for adoption at the Petco on Staples Mill Road from noon to 3 p.m. July 1 and from 1 p.m. to 3 p.m. July 2. CARE will have reduced adoption fees for pre-approved applications during this special adoption event. Apply at http://www.care-cats.org/application.

CARE is an all-volunteer, non-profit organization dedicated to the rehabilitation, care and adoption of cats and kittens rescued from euthanizing animal shelters in Richmond and surrounding areas. The organization has rescued more than 7,000 cats and kittens in 15 years of operation.

The event is part of the Petco Foundation’s national “Be a Lifesaver” adoption weekend. For details, visit http://www.care-cats.org or www.petcofoundation.org. Join the conversation on Facebook and Instagram by using the hashtag #DiscoverLove. Full text

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