When growing up I always felt that when July 4th arrives summer was halfway over. I guess Memorial Day looked so much closer than it did the last day of school.
It is interesting how we cubbyhole certain days and seasons in our personal and business life. Wednesday is hump day, April 15th is tax day, the third Thursday in November is Thanksgiving that is followed by Black Friday. Then there is July 2nd.
July 2nd. Owners, boards, banks often use different metrics to manage the success of your business. This is often set forth around the first of the year. Sometimes these seem contrary to logic, but I don’t make the rules but often observe them. As you can surmise management and staff often have bonuses tied to the mandated success.
Timing is everything, hence July 2nd.
July 2nd represents the day when your actual business activities enter the second half of the year. It’s sort of interesting:
· You will either grow your revenues over the first half or not.
· You could have an acquisition in the pipeline.
· You have the opportunity to add new markets or remain with the status quo.
Amelia Earhart was lost over the Pacific July 2, 1937
So what makes July 2nd important? In many respects it is your last chance baby.
From here on the year is really clicking down, it seems the days click down like a sub-machine gun — tat-tat-tat-rip-rip-rip. Your opportunity to obtain those annual goals are slipping buy.
Did the board want a major acquisition this year? Did you consider expanding? Were you considering selling and realize that if you wait another year your tax bit is going to be significantly higher? Were you going to downsize but have just put it off?
It’s July 2nd, this is the real world, we love holidays, 4th of July, but yes this is the real world July 2, 2009. If you don’t start soon the game is over. There are enough days to obtain many goals, but always one less tomorrow.
MY Concern – What I am trying to communicate: I am very concerned that many independent owners will be backed up toward that later part of the year and finally realize that substantial income tax increases will bite them after 2009. I wrote July 2nd primarily for you, if you are considering selling in 2009 you need to act.
Confessions of a web host company broker: We once sold a company in a stock transaction, (The buyer was purchasing the stock of an S-Corp), the seller kept on pushing for a fairly fast close. After the close the sellers accountant realized the seller had held the stock for 349 days, moving this from long term to short term capital gains.
Later – Tom
More about Tom Millitzer, President of NCC – E-mail Tom Direct
See Tom at HostingCon present: Dissecting a Hosting Company Acquisition Wednesday, 8-12-2009
About Tom Millitzer
I am an M&A guy. I sell Hosting Companies. I want you to fulfill your dreams. If you are building your company or exiting for success...I want help you grow rich.
I started NCC International in 1994, we represented our first hosting company in 1997. NCC has completed over 400 assignments. If you are considering buying or selling you need to know me. I do not bite.
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