Can They Really Buy My Business?

This morning I went on my morning walk, phone and headset engaged, ready to listen to a podcast of interest.  A voicemail from a  business owner came in after I turned the phone off last evening.  While discretion suggests I spare specifics, I thought the basics of that message would give you some light into the types of situations my firm helps owners resolve.  The summary of the call:

"Was thinking about our past discussions while driving back from our son's game on Sunday....had lots of windshield time.  We trust our managers, they know our expectations, our customers expectations and understand the critical success factors of the business. We're doing well.  It would be nice if they could buy this business from us someday, and that day is getting closer.   Dan, is it even feasible for them to do this?  We pay them fairly, but they don't have enough money to buy this, do they?  We don't want to be the bank for them--well, maybe a little.   We should talk soon."

I look forward to the discussion.  Will it happen?  It could. There are plenty of reasons it may not, but this owner is investigating the feasibility of a potential management buyout of his business. It's a first step in his planning journey and one I believe we can assist him with.  Capital is needed for every buyout--financial as well as human capital.  He has built the latter by allowing his team gradual additional responsibility and autonomy; I am confident there will be interest to support this buyout from financial capital sources. Hopefully the managers see this as an equally exciting opportunity.  I think they are ready.

While the walk was supposed to be 90 minutes today, my excitement after hearing this message-- to get prepared for this discussion-- made me cut a few corners and stop at 50 minutes.  Better skip lunch today !

Making A Decision--The Gambler's Falacy

On this morning's walk I listened to a podcast from Freakanomics radio, link is attached.  If you are a banker, a gambler or a baseball fan who wants to understand how umpires make decisions and how they are biased, this is 37 minutes you should spend.

http://freakonomics.com/podcast/make-bad-decision/