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Office Closure: Beginning July 2, the Delap office will close for an interior remodel. The remodel project has been in the works for months and will include an updated reception area as well as new and improved conference rooms. The project is scheduled to last a few months, with the office anticipated to reopen sometime around the holidays. We will continue to assist our clients with their accounting and advisory needs during the remodel, and we appreciate your patience and understanding during this renovation process.
Manufacturing companies across the nation are optimistic about 2019 according to the Leading Edge Alliance 2019 National Manufacturing Outlook and Insights Report (click the link to download the report). In addition to growing sales and improving profitability in the upcoming year, manufacturers surveyed indicated they will be considering mergers or acquisitions.
Ownership transfers often represent the most significant operational and financial impact on a business, and thoughtful consideration is recommended before any decisions are made. Based on his experience helping many clients through an ownership transition, Delap CEO Alex Corrigan offers the following recommendations to consider if you are entertaining a sale of your business in the future:
1. Assess your team and your future involvement. What will the new roles of each person look like after the transition?
2. Eliminate waste and keep your personal activities/expenses out of the business. Optimize costs for maximum efficiency.
3. Get your financial reporting dialed in. Are the numbers accurate with support readily accessible by a due diligence team? Will audited or reviewed financial statements be required? For how many years? Start early and be ready.
4. Do you have any skeletons in your closet? Legal issues? Environmental issues? State/local tax exposure? Personnel problems? These are some common landmines that can blow up these transactions quickly.
5. Is it a stock deal or asset sale proposed? Have you run cash flow scenarios to determine tax impact and expected net cash flows?
6. Work with your wealth advisor to develop a sound plan of action following a significant liquidity event.
If you have any questions or would like to learn more about the accounting and business advisory services Delap provides to manufacturing companies, please contact us today.