When it comes to the issues effecting businesses in America, the perspective of John Binkley Dallas is one that is sought out by many leaders.
With many decades of experience in mergers and acquisitions, he has dealt with almost every issue that businesses face on a daily basis. This makes him a leader that ambitious professionals should listen to when he dishes advice.
In this article, we will share some of the thoughts that he has shared lately via his Twitter account.
Don’t neglect safety when it comes prepping your business for sale
One of John Binkley’s most recent tweets (September 16, 2016) revolved around the importance of OSHA compliance by businesses that are looking to offload their operations. When you are looking to sell your business, it is important to leave no stone unturned in your preparations.
Despite the attitudes of some owners, adhering to OSHA (or other relevant safety standards) regulations is something that shouldn’t be neglected.
Apart from the ethical implications of providing a safe workplace for your employees, it makes economic sense to make certain that a culture of safety is in place on the shop floor, and that all the equipment needed to work securely is in good condition.
The risk of an incident is something that many buyers assess when determining whether to buy a business, as they will have to bear the financial and legal consequences of any and all accidents once they own your company.
Are you a boomer? Time to start thinking about succession planning.
Another article promoted by Mr. Binkley on Twitter back on August 18th revolved around the fact that boomer entrepreneurs need to start succession planning for their businesses.
Whether they seek to sell to a third-party, downgrade their responsibilities so that they can enjoy a relaxing retirement, or protect their employees and executives should they suffer an incapacitating illness/injury or death, drawing up succession plans is of paramount importance.
By sketching out a plan that spells out how things would proceed in any of these scenarios, they will be much less confusion, thereby avoiding a logistical nightmare.
IPO’s are far from cheap or easy way to cash out of a business
There is a perception among many that the IPO is the end of the road for entrepreneurs looking to make a successful exit from their business. John Binkley warns against this approach, as there are many expenses surrounding an initial public offering of which they may not be aware.
Before a company is allowed to issue shares for public sale, a law firm will need to be brought in to do the months worth of paperwork required to ensure compliance with federal law.
A long search for investment banks that would be willing to bankroll and assume the risk of the IPO will also need to be performed.
This laborious task gobbles up tons of time, capital, and mental capacity, making it tough to innovate and perform high-level operations during this period.
While initial public offerings may make sense for some entrepreneurs, there are often better ways for them to cash out.