Homeowner Digest

James Carlson asked:


If you have upholstered furniture like most of us do, you might be unaware of what exactly you need to do to take care of it. Most furniture is trouble free but there are some things you should know. Read this article and get some of the answers to the most commonly asked upholstery questions.

One of the biggest questions asked is, “My upholstery has zippers, can I wash them myself.” The answer to this is usually no. Although some fabrics can be washed successfully it would be risky to do so. The reason that your couch has zippers on the cushions is so that the manufacturer can get a better fit. They can get a tighter fit with a zipper as opposed to sewing.

Another common question is, “What method of cleaning is the best.” Generally speaking, hot water extraction cleaning is the best thing for upholstery. It is very thorough and capable of flushing out the most soil. It can not however be used on all types of upholstery. Some upholstery might require dry cleaning or low moisture cleaning. Most carpet cleaners are capable of all methods of upholstery cleaning.

One more question asked is ” Will my furniture look new again.” The answer to this is no. You need to go into this with reasonable expectations and furniture is only new once. Having said that, it is possible for upholstery to look like new after cleaning. This depends greatly on the style of fabric and the amount of use it has seen. Ask your carpet cleaner what to expect.

The final common question is, “How often should I clean my furniture.” This depends greatly on the use of the piece. If it is put under normal use, once every two years should be fine. If it is used heavily you might want to clean it every year.

I hope this article has helped answer some of your upholstery questions. If you have more questions you should call a local carpet cleaner who will be more than happy to answer them for you.



calgary carpet cleaning

Kristin R asked:


The carpet in my apartment is at least 20 years old. My biggest concern is health risks. It is filthy even after being steam cleaned I can only imagine what is trapped in the deteriorating carpet pad that might cause resperitory problems. The carpet is warn through, uneven and has been ripped up by previous tenants running cords under it. It is permanantly discolored by dirt and sundamage. It is pulling up along the door jam and catches when opening and closing the door. I have only lived here a year and didn’t create any of this damage. Are there laws regarding when carpet must be replaced?

calgary upholstery cleaning

Jim Thornton asked:


Wool carpets and area rugs are beautiful, expensive and they are the best quality carpets available on the market today. Wool carpets maintain the elegance and beauty of any room in your home and for many people they are also a status symbol that conveys wealth and good fortune. Caring and regular cleaning of your wool carpet can however, ensure that you get much more than your money’s worth from your carpet. With regular cleaning and care, your costly oriental rugs and wool carpets can easily outlast you and become a family heirloom that will please and serve future generations.

When it comes to cleaning wool rugs and carpets, then a vacuum is your best friend. Vacuum your carpet at least one to two times a week and more if they get soiled more frequently. Do not wait for a carpet to start looking dirty before you vacuum. Even with frequent vacuuming you should get your wool carpets professionally cleaned every year to make sure they last longer and look good. If you make sure that any process the carpet cleaning professional uses is a low moisture system you will find you get better results with cleaning your wool rugs.

There are many naturally occurring qualities in wool that aren’t in synthetic carpet fibers and this makes wool very desirable for home decorating. Wool is highly resistant to crushing or flattening. That makes it a great rug to use in high traffic areas in your home. Most inexpensive rugs are made from synthetic fibers like olefin or polyester and these rugs will crush down in just a short amount of time. In order to prevent uneven wearing of your wool carpets it is necessary to use carpet padding below your carpet. Also, it is extremely important to keep rotating your carpet every four to six months so that all sides get evenly worn and you don’t get any unsightly traffic patterns.

Wool is the king of natural fibers when it comes to stains. The natural oils in the wool itself naturally repel staining. This means the wool is stain resistant not stain proof. When a spill occurs it is necessary to take action as soon as possible to remove the spill so there is no permanent damage. Use a tissue or blotting cloth to blot away as much of the spillage as possible. Make it a point not to rub it in, because this might lead to permanent staining.

Once the spill has been blotted up, use the right kind of wool carpet cleaner for the product spilled. Small carpet cleaning kits are available online and they often carry wool carpet cleaners for all kinds of spills. If you do not have the right kind of carpet cleaner with you at hand, then remember that most spills that contain oils ( e.g. shoe polish, creams, cosmetics, butter, salad dressings etc.) can be cleaned with dry cleaning solvent whereas food items and other non oily spillages can be cleaned with a solution of gentle liquid detergent in water. Brush the nap in the correct direction after cleaning and dry your carpet using a cool hair dryer.

Another great quality of wool carpets is that they absorb moisture that is in the air in a room. Wool rugs can actually hold 30% of their weight in moisture thus lowering the humidity in a room. This also reduces the static electricity in the rug.

When you use wool carpets in a wall to wall installation there is simply nothing more comfortable under your feet. They are soft and warm. There is a comforting cushion of luxury as it squishes beneath your feet. They make wooden floors warmer and stone floors more comfortable and are great over carpets to add a touch of luxury.



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ddlg42 asked:


When Lowe’s Home Improvement is planning to hire someone, what service do they use to check a person’s background?

Personal Injury Lawyer Marketing

insouciant asked:


I have what I believe are mildew stains in my white carpet. When my kids spill on the carpet, I clean the surface immediately. It appears to be clean, but within a day a dark spot develops. I have several of these spots in my living room. I have tried to use Resolve carpet stain remover with no results. Any advice?

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Dave Kauppi asked:


The sale of business is a challenging and difficult transaction with several complicated aspects. Whether it’s the complete sale of a business or simply the sale of a partial ownership interest in a company, one of the most troubling issues created by this disposition is the manner in which capital gains and other taxes are addressed. There are not many options available to a business owner, and the few that are come accompanied by complex rules and regulations. There are also restrictions that can increase future risk and possibly trigger IRS penalties.

We are always looking for ways for our business sellers to maximize their transaction proceeds while keeping as much possible through the use of intelligent tax planning and deal structure. I asked Dan Carroll from Brook Hollow Financial to explain a unique way to defer capital gains taxes that are the result of a business sale.

Large Tax Bill Due upon Sale

Capital Gains, Depreciation Recapture and even Income taxes may be levied against the proceeds of the sale of the business. Depending on the initial amount invested and how much the business has grown, these taxes can consume much of the sale price. Currently the Federal Capital Gains Tax stands at 15%. Most states have a Capital Gains Tax as well, with the total amount often exceeding 20% of the gain. We believe that these rates will have near term upward pressure caused by the need for the Treasury Department to make up for the $800 billion shortfall that will result from the repeal of the Alternative Minimum Tax. Other taxes, particularly if held in a ‘C’ Corp., can exceed 60% of the transaction.

Loss of Regular Income

When a business is sold, the owner’s cash flow stops as well. Therefore, the amount of money that was being produced needs to be replaced. Without this regular income, former business owners are left with a significant gap in what they receive each month and must alter any plans or budgets accordingly.

What to do with the Proceeds

Another major challenge that a business owner will face is what to do with the proceeds of any sale. There are many ways to put this money to work for you, but this often means accepting significant risk and investing in markets without much experience. Alternatively, sellers might mitigate risk, but only at the cost of getting a very low return. Either way, inadequate returns and potential loss of capital are serious risk factors that must be considered.

Need to Mitigate Future Risk

Among the challenges presented by investing the new capital is that there may be different goals for the individual at this stage of his or her career. If the sale is prompted by a desire to move away from daily management and responsibility, or simply to cash out at a good time in the market, the owner may want to revisit his or her goals. A review of the financial needs and expectations may reveal a requirement for total investment certainty. While these alternatives do exist, most do little to provide a reasonable return and can make planning more difficult with these limited resources. The need and desire to mitigate future risk should play an important role in any decisions about your investment plans.

The Traditional Business Sale - Cash Transaction

The cash transaction option is fairly straightforward. The seller is paid cash from the buyer. After any loans or other debts are paid, the funds are then made available to the seller. At this point, the seller must pay federal and state taxes on the proceeds, and then the remaining balance is left to invest. This drastically reduces the principle and lowers any future returns. The stock market and other liquid investments carry very significant market risk, and the individual could lose some or all of the money. On the other hand, the individual could place the money into a guaranteed investment such as a certificate of deposit, but the returns will drastically lag other possible alternatives. Investing on your own requires some planning and active management of the portfolio, but more importantly, it may provide for unpredictable future income necessary to manage and care for an investor and his or her family.

Another Approach - The Installment Sale

The Installment Sale is a mechanism that has been available since the 1930’s. In this type of transaction, the buyer of a business agrees to pay the seller a certain amount of money over a fixed period of time. Under this approach, the IRS has ruled that only the amount of distribution in any given year is subject to any applicable taxes in proportion to the total due. The problem here had been reliance upon the buyer to continue to make the payments promised. Often times the business is run poorly and is no longer producing enough revenue to make the promised payments. There has always been recourse in these transactions, so that if the buyer did not live up to his obligation, the seller could foreclose and reclaim ownership of the business. However, this offered little protection if the business has not been run properly or the value lowers for other reasons, since the original seller would now reclaim a much less valuable business.

An Improved Approach - The Installment Sale with Guaranteed Annuity Payments

There is a way to ensure that these types of transactions could still be utilized while eliminating the possibility of default. The transaction takes place as described above, only there is a second transaction that occurs simultaneously. At the time of closing, the buyer purchases an annuity from an A+ rated Annuity company. Therefore the seller receives a guarantee that regardless of the future strength of the business, the payments will be made as agreed upon, and all of the tax deferral benefits remain intact.

The benefits of this type of transaction are as follows:

Seller is able to sell the business without future risk

Tax-deferral creates much greater taxable equivalent return

Flexible planning allows for specific plans tailored to individual needs

Stabilizes future income with certainty for life

Much larger total benefit over time - guaranteed

Payments can continue to pass on to heirs in the event of death

Eliminates need for expensive life insurance

Requires no management responsibility

There are no direct or on-going fees

Expedited closing

A simple way to look at this plan is to compare it to an IRA. With the IRA your investments get to grow on a tax deferred basis for many years and you get the benefit of earning investment returns on the amount not paid in tax. When you draw the funds out of the account, you are then taxed at your then current rate. With the guaranteed annuity installment sale, you may elect to take a portion of the business sale proceeds at close and pay all of the appropriate taxes on that portion.

You then could structure the guaranteed annuity to begin paying you a certain amount starting in 5 years for another 20 years. The investment would be allowed to grow tax deferred for that 5-year period. When you started taking distributions, you would be taxed at the rate you would have been from the original sale transaction. The important thing to remember here is that instead of receiving the entire distribution at closing and paying a huge tax bill up front, you are taking 1/20th of the distribution each year and paying 1/20th of the tax. The remaining portion of the deferred tax stays invested and earns income over the 20-year period. This substantially increases your return on the deferred portion of your sale proceeds.

This mechanism is a great way to secure your proceeds with guaranteed payouts, no ongoing involvement or management responsibility, and beneficial tax treatment. This will ensure the highest possible taxable equivalent return when compared to any fixed-income, guaranteed investment. Remember in a business sale the important number is how much you get to keep.



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Kris Koonar asked:


Have you been scouring through all those home-based business opportunities on the Internet looking for the perfect niche? Have you invested in a couple of them and realized that the home-based business you picked was not what it seemed at first? Have you watched dozens or even hundreds of multimedia presentations while visions of dollar signs danced in your head?

If you’ve answered “yes” to any of the questions above, you may be facing some difficult decisions regarding starting a home-based business. Do not part with another cent of your hard-earned money until you thoroughly read this article about what some home-based business sellers do not want you to know.

Every day millions of people dream about owning their own home-based business. What’s not to dream about? The opportunity to work the hours you desire and make an extraordinary sum of money is an intoxicating idea. In fact, it can be downright addictive. In response, thousands of new home-based business opportunities spring up every day that promise investors easy riches and the lifestyle that comes with ultimate success.

Most new business opportunities are quick to tell you about all the great things about their particular business model. Flashy websites, well-crafted audio presentations, and difficult to ignore graphs and charts are all part of the equation. Lost in the throes of all the excitement is that many people that buy into these programs do not consider the downside. Let’s take a look at some of the downsides that many of these businesses conveniently forget to mention.

Most home-based business opportunities leave out the fact that you will have to SELL…SELL…SELL! You should ask yourself if you like selling? Most business opportunities require you to be an expert salesperson. That’s what business is all about. Contrary to what you may believe, selling is an art. The person who may have gotten you to join in the first place might actually be making a lot of money, but again they may be a great salesperson blessed with a golden tongue (they sold you didn’t they?). So unless you really like to sell, you should be careful about the business you invest in. The art of selling is not something that everyone can do. It takes a type of dedication that has to be immune to rejection and the ability to persevere through difficult times. The fact is that most people hate selling so much that they never really succeed in their home-based business.

Did you really think the product your home based business offers will just “sell itself”? Many of the home-based business opportunities bandied across the World Wide Web indicate that their products do in fact, sell themselves. This is a definite warning sign. Very few ideas sell themselves, and in the rare occasion that an idea is so extraordinary that it would sell itself, it usually takes an inordinate effort to get the word out. A huge mistake that most first time home-based business owners face is not having enough cash to invest in advertising.

Advertising, of course, is the medium through which a product or service gathers name recognition. A basic rule in advertising 101 is that in order to be effective advertising must be consistent. It must also target a specific group of people that are likely to buy. You wouldn’t target a sports product to those who detest sports, would you? Contrary to what many home-based business sellers might tell you, very few buying decisions are impulsive. This means that a potential customer might have to see an advertisement for your product or service dozens of times before they decide to make a purchase. So if you business plans is to just invest a few hundred dollars on advertising with the hopes of gaining thousands of dollars to reinvest—think again! In order to get sales rolling you need to make a bigger commitment than that. Think about the vast amounts of money that change hands for a thirty second Super Bowl commercial. If you don’t think advertising works, then it’s already too hot in the kitchen!

Most home-based business sellers promise you that once you sign up there is very little work involved. It’s amazing that after all these years people still believe that you can get something for nothing. Can you imagine going into a job interview and expecting not to do any work? Do you think that you will be paid to just sit back on a white sand beach in some tropical paradise and drink margaritas all day while your bank account continues to grow and the good times continue to roll? If you’ve got that mindset, it would be wise to shed it in favor of a more logical approach. Of course, without proper advertising, you are not going to get very far. If you are spending your time trying to close unqualified leads then you are not going to have much time to lie on the beach and soak up the rays.

One of the ways you can get around some of these important considerations is to look for a home-based business that automates the sales process. Without automation tire-kickers and time-wasters will rob you of your valuable time. If the sales process is automated, you may be onto something. Think about the time you will save if you don’t have to track down each client and negotiate a deal. If you are on the edge of investing in a home-based business, be sure to ask if the business opportunity you are about to invest in has trained closers that work with you to close the coveted sale.

Passive income is the golden word in which most home-based businesses sell the dream of ultimate prosperity. In our society people continuously dream about having the freedom to do whatever they want, whenever they want. Passive income is income that you basically do not have to do very much for in the present. That is, it has been established already. While passive income is generated in the present, it is a result of PAST efforts. The foundation was previously constructed by people who had to work diligently and productively in order to reach their goals. Think about someone who owns a rental property and makes a nice income every month from rent. That property did not simply materialize out of thin air. The owner did not rub a magic lamp three times and receive three wishes for his efforts. It looks like the property owner has done nothing for that income but the truth is that they had to do a lot of work and build their savings in the PAST in order to be able to have enough money to buy that rental property.

Do not get sold on the idea that purchasing a home-based business will give you immediate passive income. This is a pipe dream that can cost you both time and money. Whatever endeavor you wish to pursue takes dogged determination, resiliency, and getting your hands dirty in order to succeed. You have to work and pay your dues before you can generate positive cash flow. This article is not trying to dissuade you from pursuing the dream of a home-based business - not at all! In fact, there are hundreds of thousands of people who have succeeded in starting their home-based business. What is being suggested is the fact that wealth and prosperity do not come easy. If they did, then wouldn’t everyone be working from home by now?

Starting a home-based business is a plausible investment. However, it takes hard work at first, but if you stick with it and demonstrate the ability to work through difficult times, you will be rewarded in the end. This brings up the last success factor that most home-based businesses neglect to tell you. Their advertisements show you flashy cars, luxurious homes, pearly white beaches, and vast landscapes that are usually the playgrounds for millionaires. The truth is that pursuing a home-based business takes a serious commitment of time and effort. Very simply put, you get out what you put in. A business opportunity is just like a car. If you continue to pump fuel into it, make sure it is properly maintained, and get the oil changed every couple of months, it will perform at its peak for a long period of time. On the other hand, if you let it run dry you’ll be waiting for a tow truck on the highway to oblivion!

The goal of attaining passive income is very possible if you pay your dues and do a little bit of hard work. Never forget that the time you put into your home based business is an investment. It is more than likely that your business will not take off the first day, week, or month after you start it. However, with persistence and a never-say-die attitude, you will probably experience success faster than others.

If you have the drive to make your home-based business a successful and thriving reality, visit our website for a free 6 Minute Movie. If you are interested in a home-based business that has an automated sales process and helps you close the sale then visit our website for a free no hassle presentation without pushy sales staff that pressure you into action.

This could be a watershed moment in your life. It could be a time where your fortunes do indeed change for the better, so it makes sense to carefully consider your options. After you view the free 6 Minute Movie on our website, you will have a better idea of what is entailed in the automated sales process, and how you wish to proceed with your dream of a realistic, successful, and quality home-based business.



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Bill Henthorn asked:


Selling your business takes planning and careful documentation of information about the business. The financial statements have to be brought current and also all past information say for the last five years should be reviewed for accuracy. A current inventory should be prepared if the business is inventory sensitive. A list of leases, legal obligations, loans to be assumed and other obligations should be made and classified. In short, all money matters of any importance should be noted and documented.



Expert help with the numbers



Any projections of future business should be explained and the facts that led to the conclusions should be detailed. Any problem areas should be listed and how the present owner or the new owner can resolve them. If a lease is about to expire, can it be extended and if so at what expense. If major repairs are required to upgrade the building that comes with the business, these should be noted and the estimated cost of the repairs. Once all of this is done, the owner should decide how he is going to market his business so as to attract prospective buyers. Is he going to go it alone or hire someone to help in finding a buyer? How is the asking price of the business being set and using what criteria. Is a professional business broker going to be brought in to help with all of these questions? The suggestion in this deal is an expert can be worth the expense as they can find buyers, help to set a realistic price for the business and make up a proposal that puts the business in the best possible light. They can provide the marketing that will help to sell a good business in a quick and efficient manner. The longer a business is up for sale, the more questions prospective buyers will come up with. A business that is profitable and selling at a fair price should sell rather quickly. In fact such a business may find itself in the happy situation of a bidding war between buyers.



Owner help and other agreements



The owner should have the answers to whether his employees will stay if the business is sold. He should have a valid reason for wanting to sell the business.

Details such as cleaning up the office or the work area while minor in the scheme of things can be major as to first impressions. People are influenced by their first impression and this should be made positive if at all possible. Clean and efficient is the key impression that helps to sell a successful business. A sloppy environment gives the impression of a sloppy operation. Clean and snappy is the impression the seller should present to prospective buyers.

Make sure any agreements you have between the business and a third party are transferable to the new owner. Do not get caught unprepared to answer this type of question. The new owner would be foolish not to want to know these details. This information has the power to make or break a pending deal. If the building you are located in is rented to you, make sure your rental agreement can be transferred to the new owner. The secret here is to keep the purchase as simple as possible. Try to keep these details from becoming major discussion points.

Do your homework and know the answers to obvious questions like these. If you are asked a question that you are not sure of the answer, do not guess but state you will get the answer as soon as possible.



The presentation of facts



You have gone to the trouble of collecting all of the relevant facts associated with your business. Put them a pleasing presentation form. Have the numbers certified by your accountant. You do not want the buyer’s people to find errors in your information or the math. Make sure the information is presented in a readable form and it can quickly be understood.

A business broker can take all of these concerns off your plate. They do this all of the time and probably has staff that ensures the information is presented in a professional manner. Impressions as stated before are important and this is one of the areas of expertise that a business broker brings to the deal.



Setting a price and help doing it



A certified broker can help to set a realistic price for the business. The certification means they have passed a detailed exam on how to come up with a price for the business. They do not just pull the selling price out of the blue, but have valid reasons for it that can be explained to the buyer. This gives the price creditability in the eyes of the buyer and it is from an unbiased third person. This can be important in getting a sale, which is completed near your asking price.

They can also be very good in the difficult negotiation stages of the sale. They can keep the buyer and seller appeased and moves the deal forward without the tenseness that can develop during serious deal making. Since they are seen as a somewhat disengaged third party, they can remain cool under the strain of making the deal. Business Brokers are inevitable in selling a business. Check out our article on Role of business brokers in Selling a business for a clear idea.

Remember they have been here before and they may have a better idea of what will make the sale come together than either the buyer or the seller. Take advantage of this experience and skill they have acquired over time. A quick sale at a good price is what all parties are looking for and a good business broker can make this happen. This is what they do for a living year round and they do not have an emotional interest in the sale of the business like the old owner may have. On the other hand they are interested in making a good deal for all parties, as that is how they make their money and keep their reputation as a good broker.



Prepared answers prevent cooling of buyer



If there are legal considerations that will need to be complied with, make sure you have a legal opinion ready to share when discussing this with the buyer or their agent. This is where a legal opinion from your attorney may come in play. In any event have it ready so that the process is not delayed. Hot buyers and sellers can cool off given enough time to let it happen. Keep the ball moving forward with as little delay as possible. Anticipating the questions and having the answers ready keeps the ball moving forward toward making the sale. Stagnation of the discussion can be deadly to the deal. Be prepared with the solutions to potential questions or obvious inquiries from the buyer. Be pro-active and not reactive to the selling of your business. Think of questions you would have and be prepared to answer them in detail if it is necessary.



Conclusions and terms



Have a ready answer to the question of whether you will help finance the purchase or not. If you are willing, make sure you have given some thought to the terms you would find acceptable. You may be able to get a higher price if your terms are good enough. This is one of the ways to get your asking price with little haggling. The art of all deals is each party must feel good about the final result. Do your part in making this happen.



business for sale

Dave Kauppi asked:


If you’re a family business owner, chances are you’re thinking about what you’ll do when your working days are over. As William Rothwell, a professor at Penn State University, noted in the foreword to Exit Right: A Guided Tour of Succession Planning for Families in Business Together “More than 40% of the people who run the closely held operations that comprise 80% of the North American economy will retire by 2007.”

Even if you currently view the idea as unlikely, you are wise to consider the possibility of selling your material handling company. The decision to sell is all too often a reactive one rather than a proactive one — the primary reasons are a serious health issue, owner burnout, the death of a principal, general industry decline or the loss of a major customer. Advance planning can ensure that you exit your business from a position of strength, not from weakness due to necessity.

1. The biggest mistake business owners make is waiting too long to sell. Have you ever heard, “I sold my business to early?” Compare that with the number of times you’ve heard somebody say, “I should have sold my business two years ago.” Unfortunately, waiting too long is probably the single biggest factor in reducing the proceeds from the sale of a privately held business. The erosion in business value typically is most pronounced in that last year before exiting.

The decision to sell is often times a reactive decision rather than a proactive decision. An individual who spends 20 years running their business and controlling their outcomes often behaves differently in the exit from his business. The primary reasons for selling are events such as a serious health issue, owner burnout, the death of a principal, general industry decline, or the loss of a major customer.

Exit your business from a position of strength, not from the necessity of weakness. Don’t let that next big deal delay your sale. You can reward yourself for that transaction you project to close with an intelligently written sale agreement containing contingent payments in the future if that event occurs.

2. Figure out what you will do with your time after you are no longer working sixty hours per week. We all create business plans both formally and informally. We all plan for vacations. We plan our parties. We need to plan for the most important financial event of our lives, the sale of our business.

Typically a privately held business represents greater than 80% of the owner’s net worth. Start out with your plans of how you want to enjoy the rewards of your labor. Where do you want to travel? What hobbies have you been meaning to start? What volunteer work have you meant to do? Where do you want to live? What job would you do if money were not in issue? You need to mentally establish an identity for yourself outside of your business.

3. Get your business ready to sell. Now that you are all excited about the fun things you’ll do once you exit your business, it’s now time to focus on the things that you can do to maximize the value of your business upon sale. This topic is enough content for an entire article, however, we will briefly touch upon a couple of important points.

First, engage a professional CPA firm to do your books. Buyers fear risk. Audited or reviewed financial statements from a reputable accounting firm reduced the perception of risk. Do not expect the buyer to give you credit for something that does not appear in your books. If you find that a large percentage of your business comes from a very few customers, embark on a program immediately to reduced customer concentration. Buyers fear that when the owner exits the major customers are at risk of leaving as well.

Start to delegate management activities immediately and identify successors internally. If you have no one that fits that description and you have enough time, seek out, hire and train that individual that would stay on for the transition and beyond. Buyers want to keep key people that can continue the momentum of the business.

Analyze and identify the growth opportunities that are available to your business. Get rid of that outdated inventory. The buyer will not pay you for it anyway and it just clutters up the place.

4. When you are wearing all the hats already, trying to sell your company yourself can hurt your business. A major mistake business owners make in exiting their business is to focus their time and attention on selling the business as opposed to running the business. This occurs in large publicly traded companies with deep management teams as well as in private companies where management is largely in the hands of a single individual.

Many large companies that are in the throws of being acquired are guilty of losing focus on the day-to-day operations. In case after case these businesses suffer a significant competitive downturn. If the acquisition does not materialize, their business has suffered significant erosion in value.

For a privately held business the impact is even more acute. There simply is not enough time for the owner to wear the many hats of operating his business while embarking on a full-time job of selling his business. The owner wants the impending sale to be totally confidential until the very last minute.

If the owner attempts to sell the business himself, by default he has identified that his business is for sale. Competitors would love to have this information. Bankers get nervous. Employees get nervous. Customers get nervous. Suppliers get nervous. The owner has inadvertently created risk, a potential drop in business and a corresponding drop in the sale price of his business.

5. To maximize your selling price, you must get multiple buyers interested in buying your material handling business. The “typical” business sale transaction for a privately held business begins with either an unsolicited approach by a competitor or with a decision on the part of the owner to exit. If a competitor initiates the process, he typically isn’t interested in over paying for your business. In fact, just the opposite is true. He is trying to buy your business at a discount.

Outside of yourself there is no one in a better position to understand the value of your business more than a major competitor. He will try to keep the sales process limited to a negotiation of one. In our mergers and acquisitions practice the owner often approaches us after an unsolicited offer. What we have found is generally that unsolicited buyer is not the ultimate purchaser, or if he is, the final purchase price is, on average 20% higher than the original offer.

If the owner decides to exit and initiates the process, it usually begins with a communication with a trusted advisor - accountant, lawyer, banker, or financial advisor. Let’s say that the owner is considering selling his business and he tells his banker. The well- meaning banker says, “One of my other customers is also in your industry. Why don’t I provide you an introduction?” If the introduction results in a negotiation of one, it is unlikely that you will get the highest and best the market has to offer.

You may have spent your life’s work building your material handling business to provide you the income, wealth creation, and legacy that you had planned and hoped for. You prepared and were competitive and tireless in your approach. You have one final act in your business. Make that your final business success. Exit on purpose and do it from a position of strength and receive the highest and best deal the market has to offer.



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