People-watching is at its best at our little airport.
The 6 a.m. flights from both airlines were jammed full on Jan. 2. Those cheaper, early departures allow for connection to virtually anywhere in North America by the day's end. That day I dropped off two daughters and a son-in-law for destinations away from home, requiring a 3:45 a.m. wake time at the end of a week of relentless activity, rich food, and late nights.
Although I tried to hide it, I was shrouded in melancholy seeing them off, exacerbated by their cheerful bounce, which reminded me unmistakably that they were headed home, not leaving home.
By no means was I alone in my loneliness. All around me was the deafening softness of severing loved ones leaving. It tore through the air in muffled agony as middle-aged parents near me were also letting go. Or not letting go - savouring. Now being painfully bled off, the elation they had felt a week ago at this same airport, or 20-ish years ago in the maternity ward.
One couple in particular seemed to be feeling it even more than I was. They couldn't bear to even fake a smile. On the edge of tears, they offered only blank stares, longing after their lovely daughter who, unlike most of the departing young adults, was feeling every ounce of it with her parents.
They glanced at one another periodically as the younger woman meandered through the security line up. I was every bit the hanger on with mine, but my girls never so much as glanced back. This one ached, inching along, glancing back, and finally turned away in obvious pain.
A moment later I ran in to a client, one of the many which I admire greatly, on my way out of the airport. He was headed to a sunny place, or would be in a day or two. He was as bouncy as the younger ones I just said goodbye to.
We greeted, pleasantly, Happy New Year and all that.
He and his lovely wife had climbed out of the generational sandwich years ago and were now enjoying life immensely. Grandchildren. That's what pushed them out of the sandwich. Grandchildren, and a good retirement plan.
Grandpa... I think I could eat that sandwich!
After a break for Christmas, we return now to the ongoing series on selling the business, picking up on some ideas to consider as the day approaches to say good-bye to that other creation you birthed a few decades ago. The family business.
Exit options
There are only a limited number of options available to any private owner wanting to exit their business. Each situation is unique, so those options that are available can be limited even further by the specific circumstances of the business. Aside from taking a company public through an initial public offering, a very expensive process, there are two basic approaches to exiting a business:
No. 1 - Selling or transferring to parties related to the business, such as a family member, management team or another partner or shareholder.
No. 2 - Selling to third-party buyers, which can include strategic buyers, financial buyers and other interested parties or serial entrepreneurs.
Although there are other exit options than those mentioned above, we will focus on selling your business to a third party.
Generally speaking, selling to third-party buyers is the best option for an owner who wants to exit their business, maximize deal terms and cash out.
You can approach third-party buyers, either strategic or private equity groups, to determine their interest in purchasing your business or engage an intermediary to do so on your behalf. If you are attempting to get the highest and best offer for your business, engaging a professional to run the divestiture process usually results in the best deal.
Selling to a strategic buyer typically represents a very good option for most business owners.
Strategic buyers are often in the same or a similar business to the company being sold. As such, they understand the markets served and the associated risks, and have the potential to extract various synergies.
Due to their competitive position in the marketplace, a strategic buyer is usually also in the best position to pay a premium for the company. The drawback with opting for a strategic buyer is the requirement to disclose confidential information to the potential buyer - who may in some cases also be a competitor.
On the other hand, financial buyers, or private equity groups, are looking for businesses with quality management teams, a strong earnings history, good margins, a sustainable competitive position in the industry, and attractive long-term prospects in which to invest.
Often these buyers require the existing management team to stay on after the purchase as they generally don't have a management team of their own to put in place.
Private equity groups pose less of a confidentiality concern to a seller due to their professional approach.
As always, this article is not meant as tax or legal advice. Readers should consult their own professionals before proceeding with a strategy.
Mark Ryan is an advisor in Prince George with RBC Wealth Management, Dominion Securities, (member CIPF) and can be reached at [email protected], or
250-960-4927.
