Of those shop owners who think their companies will go on after them, less than half have named a successor, less than half have buy-sell agreements in place, even fewer have provided for the funding of those agreements, and less than 40 percent understand the financial impact that estate taxes will have on their businesses. One local shop owner just informed me he has letters from three nearby competitors who want out and are hoping to find buyers. Why are shop owners or jobbers in business anyway you might wonder, as I sometimes encounter owners who are taking out less income than a key technician. He has no wish for his relatives, employees, suppliers, bank, customers or competitors to know his financial affairs a relationship with a team of advisors who are both skilled and trustworthy. This owner may perhaps be hard to work with because he feels suspicious of new advisors, skeptical of new ideas, intimidated, and at personal risk of losing it all.
Procrastination is the order of the day.
The fundamental changes taking place in the industry today are being seen by some as a chance to grow, and by others as a wake-up call to pass the torch or even close down. The December article will provide specific suggestions on how you can make your company financial statements attractive to a potential buyer. John J. Dunlavey provides services to owners of collision repair facilities and their jobbers.