Business Resiliency

So yesterday I got the year end numbers for one of my clients. I've had the listing for a little while, but the seller is happy with my work thus far and the prospective buyers that I've brought to the table. For differing reasons we've yet to complete the transaction, but let me be clear - this is not a failing business. It's established (almost 20 years), very profitable, and very resilient, which is what got me thinking about blogging on it a little. For confidentiality reasons I have to be a little vague, but read on.

So, here you have this service business that operates in a zone that has been closely tied to commercial and residential construction and provides a service that can easily be seen as a luxury. What do you think of with this economy when I say construction and luxury? Yeah, you're right, the odds are against this business' survival. Earlier this year, the numbers were GRIM and it's hard to sell a business when their numbers look grim, to say the least.

In the face of this however, the owner didn't panic, didn't offer a fire sale, didn't say "aw, the hell with it, I'm just going to close up shop. He gave some thought to what other work he could do and what other services he could provide with the equipment he already owned and with the expertise his employees already had. He stayed focused on diversifying his service offerings and turning over all kinds of rocks to look for clients to sell to. Have you ever heard the expression "stick-to-it-iveness"? He has it.

So the result: he had a blowout 2nd half of the year. 3rd and 4th quarter sales were up versus the prior year, cash flow was right in line with prior years, he's put contracts in place for multiple years forward, guaranteeing future revenue streams, and overall he's put this business in a much better place than it was a year ago, all during the crappiest economy our generation has ever seen. When the economy rebounds, the business will be poised to take advantage. That's Business Resiliency, and that makes for a great business for someone to acquire and grow! Know anyone? Let me know.