Why Owners Choose Not To Sell

by T. Ray Phillips - July 31st, 2015

Presented by T. Ray Phillips

Some owners make a choice not to sell their companies for very legitimate reasons. Among them are:

They still have enough fire in the belly to fuel their investment of time and energy in the business. They are grooming interested family members or employees to one day assume the reins.

Some owners, however, have businesses that are prepared for sale, but hesitate. Why? These owners typically don’t sell when they should because: 1) they procrastinate; 2) they fear the unknown; or 3) they fear losing the known.

Procrastination
Procrastination on the part of an owner is not uncommon and has many causes.

First, some owners just don’t know where or how to start planning an exit. If you are one of those owners, then reading the remainder of this article is a good start. The next step is to contact our offices to begin the process of creating an Exit Plan that allows you to cash out of your business and leave in style when you are ready to do so.

Second, some owners think that they can always sell later. These owners overlook the demographic evidence indicating that when most Boomers reach retirement age, the glut of companies in the marketplace may drive prices down. Other owners in this group understand that the level of activity in the Mergers & Acquisition market can have a huge affect on the sale price of a company and their strategy is to wait until the market recovers.

In the third group of procrastinating owners are those who believe that because they have “good” businesses, their exits require no significant planning. When they think about selling, they assume that there isn’t much for them to do because when the time is right, the right buyers will appear and pay them great prices for their companies.It does happen, albeit quite rarely, that the right buyer appears and pays a great price for a great company. However, it makes more sense to prepare for the biggest financial transaction of your life than to entrust the success of your business exit to Lady Luck.

Fear of the Unknown
Owners who suffer from the fear of the unknown usually hold one (or more) of the following opinions:

I don’t think the business is worth enough to satisfy my financial needs and objectives.
If the employees discover I’m trying to sell, they will all quit.
Because I’m indispensable to the company, I’ll be required to work years for a new owner and I don’t like working for anyone!
The sale process will take too long and cost too much.

Fear of Losing the Known
On the other hand, the fear of losing the known is usually based on the following:

The business has been my life—or at least it has given my life a great deal of meaning and focus; without it I may feel lost.
The government will take too much in taxes. It is easier, less risky and more lucrative to stay, enjoy the cash flow and then leave getting paid over time.

What will I do after I sell and leave the business? I don’t know what my life will look like if I leave.

If one (or more) of these concerns resonates with you, let’s meet to assess them.

DISCLAIMER: The information contained in this article is general in nature and is not legal advice. For information regarding your particular situation, contact an attorney or tax advisor. This newsletter is believed to provide accurate and authoritative information related to the subject matter. The accuracy of the information is not guaranteed and is provided with the understanding that none of the providers of this newsletter, including Business Enterprise Institute, Inc., is rendering legal, accounting or tax advice. In specific cases, clients should consult their legal, accounting or tax advisors.

Please do not leave trade instructions over e-mail, as they cannot be processed.

Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS under circular 230, we inform you that any U.S. Federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any matters addressed herein.

T. Ray Phillips, CFBS, AEP, ChFC
trphillips@financialguide.com

The Family Business Legacy Co, LLC
900 E 96th Street
Suite 300
Indianapolis, IN 46240
http://www.familybusinesslegacies.com

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PRESS RELEASE: LIKE FATHER, LIKE SON

by Jason Sophian - June 1st, 2015

MARINE VET DAD WAITS FOR SON TO JOIN FORCES WITH HIM AT HIS WINDOW GENIE

Mike Angle (left), owner of Window Genie of Mooresville with son Joseph

Mike Angle (left), owner of Window Genie of Mooresville with son Joseph

(MOORESVILLE, Ind.)—Mike Angle served in the U.S. Marine Corps from 1980-1985. After working for United Airlines for 17 years, the veteran decided that it was time for a change and, along with wife Karen, chose to open his own Window Genie franchise located at 8717 N Country Club Road and serving Hendricks County, Camby, Mooresville, Greenwood and South Indianapolis areas. With the franchise famous for its “big three” services—window cleaning, window tinting and pressure washing—Angle is leveraging leadership skills earned from his military service with the franchise system lauded in 2014 by Money Magazine, Entrepreneur Magazine, Inc. Magazine and a host of other media for its franchisee growth success.

Angle opened his Window Genie business in 2011 with his wife, inspired by the harsh realities of the economic climate at the time.

“My wife had to take a 40 percent pay cut at her own job in 2010,” said Angle. “That gave us reason to pause and ask ourselves ‘What are we doing? Let’s go in business together.’ We located a business coach who recommended three different franchises. Window Genie was the clear standout due to the support it provides for franchisees, making our choice an easy one.”

Now, Angle’s son, Joseph, an E-5 Marine with eight years of service time under his belt, is slated to join the proud father and mother at Window Genie. With his start date slated for June, Angle is preparing for a Father’s Day unlike any other.

After nearly four years of business, Angle can now safely say that the couple’s choice was the right one to make. But with the addition of Joseph, Angle said, the business takes on special significance to him.

“We’ve provided full-service cleaning solutions that others don’t—not only do we clean windows, but we clean gutters, we power wash concrete, home exteriors and decks, and we install window tinting—which has made us a success,” said Mike. “But now that my son’s joining the team, ensuring the continued success of Window Genie means ensuring a business that will be his to run years down the line. Window Genie provides a system that makes me confident that the business will be there for him when it’s time.”

As he prepares for the introduction of his son to the Window Genie of Southwest Indianapolis team, Angle looks ahead to budding industry trends.

“Washed windows make an obvious impact in terms of increasing a home’s aesthetics, but window tinting is definitely coming into play more as well,” said Angle. “A properly tinted window can prevent harmful rays from damaging furniture and can help keep homes cooler, benefiting both homeowners’ wallets and the environment.”

Mike Angle
Window Genie of Southwest Indianapolis
317-414-4772 ext 8

For more information, contact:
Jason Sophian
Sanderson & Associates
312-829-4350
Jason@sandersonpr.com

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Tony Scelzo’s Thought Crucible I

by Tony Scelzo - May 30th, 2015

TonyScelzoEd

FOCUS ON THE OPPORTUNITIES

Every day—every moment—we get to make a choice about what we’re going to focus on. Are we going to focus on the “bad” things that have happened to us, the people who have hurt us, the wrongs that we think make us victims? Or are we going to stand up and get to work on the unlimited and wonderful possibilities that await us?

Let me answer that question for you. You are a victor. You are meant for greatness. Seize the opportunity provided to you on this day. Go get it.

FANNING THE FLAME OF TEAM EXCELLENCE?

As managers and leaders we are always focusing on, agonizing over, and addressing problems. Because we do this so often it tends to be all we see. We become blind to the fire that keeps us warm: the people who drive our business, keep it going, and create results and activities that we DON’T have to deal with as a manager.

As leaders, we must “Fan the Flame” with positive affirmations of what is going right and what our team is doing well.

CLEAR EYES, FULL HEART, CAN’T LOSE

“Clear eyes, full heart, can’t lose”—the television show Friday Night Lights has made this quote very powerful, and I’ve been talking to my daughters about what it means. In my house, it means we are not allowed to say “I can’t.”

Think about the power of those six words and how many live they have changed. To me, this phrase is one I use to teach my girls the difference between winning and losing, between being perfect for yourself and true to yourself. Be careful of the words you choose to put into your head. They have power over your actions.

Tony Scelzo, President
Stringcan
http://stringcan.com
(317) 662-2126
Indianapolis Office (Main)
7208 North Dobson Street
Indianapolis, IN 46268

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Indiana Guitar Show returns to Indy

by Robert L. Flott and Lisa Marie Anderson - April 21st, 2015
Eddie Prather and Doug Spencer of the Indiana Guitar Show

Eddie Prather and Doug Spencer of the Indiana Guitar Show

Guitar lovers and those who appreciate all things associated with guitars will want to visit the Indianapolis Airport Radisson this Sunday.

The Indiana Guitar Show is back.

From 11 AM to 6 PM Sunday, the Indiana Guitar Show is a one-day musical frenzy. All sorts of instruments are sold, bought and traded in one location.

And it’s not just guitars; all types of stringed instruments – guitars, of course, plus basses, fiddles, mandolins, etc – are available, according to Eddie Prather, owner of Minor Prophet Studios and one of the event organizers.

“We also have a few band instruments and drums,” Prather said. “Plus other equipment such as PA gear, Mics, recording gear, and more. There will also be sound absorption companies like Auralex to help solve troubled studio specs or houses of worship and any other accessories like tuners.”

The Indiana Guitar Show had been running for 18 years before the original organizer decided to stop for personal reasons. That was four years ago when Prather and Doug Spencer were asked if they wanted to get involved.

“Doug Spencer and I had been involved in a smaller show in Muncie with Jerry Engle the past three years,” Prather said. “He didn’t really enjoy doing the show and asked me to take it over. After several months of persuading, I relented and took over the show; asking Doug to co-promote it with me. We contacted the previous owner of The Indiana Guitar Show and asked to buy the name from him, so we could pick up the show as it was from back in the days when it took place at the Indiana State Fair.”

One of the first things Prather and Spencer did was relocate the event away from the Indiana State Fair.

“We decided after looking at multiple sites to change the venue to The Airport Radisson right off I- 465 and I-70,” Prather explained. “There was really easy access for those who would be coming in from out of town and locals could also get there much easier than the fairgrounds which is difficult to get to and costs $5 just to get into the parking lot, even before getting their admission to the show.

“We chose it because parking was free and the rate for a one day show was reasonable and very easy access.”

The Radisson offered one thing even more appealing – a buffet. This eliminated the need to line up food vendors as well as guitar vendors.

“They agreed to run a buffet the whole event,” Prather noted. “People can pay for a buffet and then walk in and out of the buffet area due to the two rooms that the Guitar show is in is attached to the buffet room.”

More than 115 tables of equipment from vendors across the country are available for perusal with vendors from across the country – Chicago, Detroit, Tempe Arizona, South Carolina, New York, Pennsylvania, Nashville and all over the Midwest.

Admission to the event is $8, and parking is free. People are encouraged to bring their vintage instruments in to have the dealers look them over and give them an idea of their worth nationally.

“Some of these guys are primarily buyers,” Prather said. “They bring thousands of dollars with them to buy all sorts of musical stuff that they will pick up in Indiana so we welcome people to bring their musical items for trading, & selling.

“It’s like being an American Picker,” Prather said. “An American Guitar Picker!”

For more information or for those interested in purchasing a display tables or admission can contact me at (317)-272-5222 or by email at TheIndianaGuitarShow@gmail.com.

Press Contact
Robert L. Flott and Lisa Marie Anderson
B3 Entertainment
(812) 223-0979

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