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Objectively Consider Selling Your Business

By ITR Economics on January 6, 2022

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ITR Economics

ITR Economics is the oldest, privately-held, continuously operating, economic research and consulting firm in the US.

The Emotions are REAL

ITR Economics CEO Brian Beaulieu said it best: “You pour your heart and soul into your business … so your employees and your family can have a good life, a stable life, and careers.”

Owning a business is stressful. Think back – how many years have you owned your company?

And during those years, how many times did you:

  • Make very tough decisions that either made you unpopular with employees or uncomfortable in your financial situation?
  • Pace your office floor mulling over the current state of the business and masterminding how to get to that next level?
  • Stay up all night because there was just so much going on that you couldn’t “shut off your brain”?

Memories of these past experiences come flooding back when you start considering another question: “Is it time to sell my business?”

Once you start with this train of thought, other questions may come creeping in:

  • What if the next leadership team ruins all my hard work?
  • What will become of my legacy?
  • How can I be sure I’m properly setting up the company for ongoing success?

All these questions – all these concerns – invoke such emotion that it can feel nearly impossible to make a move, and, when you do, it may feel like diving off a cliff.

It can seem as though everything has to be based on instinct. How could there possibly be a guiding light to help you account for all the facets that are your business and know, with confidence, that your business – for all intents and purposes, your child – will continue to grow and flourish into the future?

And how do you know with confidence that you, who have worked so hard all these years, will be able to retire with the lifestyle that you deserve?

Good news! It’s time to take a deep breath and relax – ITR Economics has partnered with ButcherJoseph & Co. with the specific purpose of helping you cut through the emotions and manage your company’s future sale with confidence!

ButcherJoseph & Co. can help you create the path and plan!

Whether you are looking to sell, raise capital, or put a new strategy in place, ButcherJoseph’s team has the diversity and experience to support your goals.

They focus on providing tailored and powerful transition plans to meet each individual business owner’s objectives. In contrast with many other investment banks, it’s not a “one size fits all” program with ButcherJoseph.

One of the services ButcherJoseph provides for business owners contemplating a sale is a complimentary feasibility analysis study. This free service helps potential sellers learn more about the structure and the results for shareholders as well as the outcome for management and employees of a potential sale, whether to private equity, a strategic buyer, or into an ESOP structure. As you weigh your options, this complimentary analysis will help you and your team see the benefits associated with each transaction type and clarify additional considerations with regard to current market dynamics.

Perhaps after working with ITR Economics, you will find that now is not the right time to sell. Our team will use the now-established timeline to help you and your business prepare in advance to achieve the valuation desired for sale.

ITR Economics will show you the right time!

“We have worked with companies of all types, all sizes, and all industries for over 73 years. We are good at what we do. We are first in forecasts, and we specialize in the business cycle, interest rates, stock market – all the things that will influence your ability to walk away with as much money as you deserve after working all those years to build your business up and take care of your employees and their families,” says Brian Beaulieu, CEO of ITR Economics.

Let’s focus on his reference to the "business cycle." Why is that important? The answer is simple. It is important because the business cycle is what is going to tell you the right time to sell.

Not only will you know the right time, but – just as importantly – our applied expertise will remove some of the emotional aspect:

  • Leading indicators add confidence
  • Using data removes the feeling of the unknown
  • Expert advice grounds your thinking

Business revenues rise and fall. Overall economic trends rise and fall. Industry activity rises and falls. Makes sense, right? It is ITR Economics' expertise to forecast that very ebb and flow, from the GDP of an entire country all the way down to your business. This forecast will allow you to identify the right time to sell based on when you can expect to receive the highest valuation.

But how can it be so simple? One of the best analogies I’ve heard to date is to picture the economy as a train, and your business as a car on that train. Let’s say that US Industrial Production is the first car, and your business is 30 cars back. When we see US Industrial Production go around a corner, we will know when your business will go around a similar corner. In other words, when Industrial Production rises, rise is ahead for your business; the same holds true on the down cycle.

Objectively Planning Your Exit

Using this timing between segments of the economy – or understanding where your business is on the train – and looking at general inputs such as taxation, interest rates, inflation, and stock market activity gives you a full picture of when you can expect the optimal point in time to sell.

So how does all this turn an emotional time into an objective decision?

  • ButcherJoseph creates the plan with you to ensure your company’s success leading up to and during the sale.
  • ITR Economics gives you and ButcherJoseph the window of time you need to have your business ready.

The emotions will never be completely gone, but your plan will now be objective, well-rounded, and successful, culminating in the retirement you’ve earned and deserve.

For more information from ITR Economics CEO Brian Beaulieu on selling your business, watch this quick five-minute video!

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