Issue link: https://www.e-digitaleditions.com/i/508347
May/June 2015 27 DISPOSERS Salvajor Assembly packages are available for sink and cone bowl installations with water- tight energy and water-saving controls. 3 /4 HP thru 7- 1 /2 HP. More Disposer Solutions SCRAPMASTER® TROUGHVEYOR® A single operator scrapping, pre-rinsing and food waste disposing system designed for schools, hospitals, nursing homes and cafeterias. Avail- able with 3, 5 or 7- 1 /2 HP. A multiple operator scrapping, pre-flushing and food waste disposing system designed for volume users like university cafeterias, schools, casinos, convention centers and correctional facilities. Available with 3, 5 or 7- 1 /2 HP. m.salvajor.com for Product Video Specifications Full Product Line DISPOSERS • FOOD WASTE SCRAPPING SYSTEMS • FOOD WASTE COLLECTING SYSTEMS Contact Salvajor today to learn more. salvajor.com • (800) SALVAJOR What's your real-estate situation? For most material handling distribu- tors, particularly forklift dealers where facilities are substantial and matter, real estate decisions can be critical. If you own the real-estate, it can mean con- tinued income after a sale—if a lease obligation is part of the sales agreement. If you don't own the real estate, a lease renewal date may be a trigger point for decisions. Are you ready to sign another long-term lease? Is the property owner thinking in other directions? Are you ready to move your business? If you do own the property, would it be worth more in some use other than your cur- rent business there? What one-time opportunities are presenting themselves that might trigger a decision? A few years ago, some material han- dling suppliers were buying distributor- ships in order to be a player in the dis- tributor part of the supply chain. They were offering high earnings' multiples. Some dealers sold, even when they had not been planning this, in order to take advantage of these one-time opportuni- ties. Another situation might be a neigh- boring distributor sharing similar lines that wants to expand and has the capital to do so. Still, another might be a new player entering the market and is making investments in distribution to establish their position. Sometimes these current opportunities really are "one-time" and "too good to pass up." What's your partnership situation? Where business owners are not sole owners, the relationship between part- ners or shareholders can be a stimulus to the "sell or not-to-sell" decision. Where work ethic, responsibilities, financial needs, family needs, age demographics are different, frictions can exist that neg- atively affect the operation of the busi- ness. Sometimes buying out a partner or shareholder will solve this. Sometimes, particularly where the cash may not be available to do this, a sale of the business and splitting the proceeds may be the best way to ensure no one loses. What's the key employee situation? Most material handling distributors are "key-people driven." While they may or may not share ownership, they can influence supplier and customer choic- es; organizational decisions; the value of the distributorship for sale; or for ongo- ing operations. Questions here include who are my real key employees? What are their age demographics? What are their personal and professional objec- tives? How might they influence the sale of my distributorship? How might they react to the sale? When to involve them in decision dis- cussions is a very situation-specific issue. continued on page 32 When to Sell continued