These areas frequently reflect once in a life time experiences and yet they will impact every aspect of your operation. Evaluate these opportunities for affordability and fit.

Affordability

How do you value a plant, a dry store, a route, or wholesale work? Always calculate the true cash flow contribution along with any other evaluations you may consider.

Future cash flows will be impacted by some or all of the following issues:

• Lease terms
• Existing management strength and strategies to retain them
• Contribution to the business by the current owner
• Equipment value
• Contamination Issues

Fit

Consider all of your resources – management, equipment, capacity, and financial resources.

Consider the cultures of the two organizations.

Negotiating a price

The asking price may or may not be directly related to the cash flow value you calculated. There are always non-cash considerations as well as negotiating strategies to consider.

Make sure that time is on your side as you have a better chance to be successful if you are not in a hurry.

Other Issues

How to negotiate and work with brokers

Creative financing strategies

Tax strategies

Your due diligent responsibilities

Letter of intent

Family Transitions – A Special Case

This very personal exit and entrance strategy is frequently the most difficult transaction.

Beyond the normal considerations, other issues arise such as family harmony, fairness, equity and taxes.


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