The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
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Spring LITERATURE SHOWCASE 2013 competition. Your entire company should understand why it is the best at what it does. It should be no surprise that those companies are worth significantly more to buyers, as well. If it's important to the company's health and growth to explore a new strategic direction – do so, but don't try to sell your company at the same time. Buyers love a stable business plan that has been historically successful and is positioned to continue being profitable in the future. Have a clearly focused, executable vision and goal that everyone in the company understands. Diversify Your Customer Base Don't put all your eggs in one basket. If 90 percent of your revenue comes from one customer, that is a big turn-off for buyers. Some companies have great revenue numbers, but 90 percent of it is tied up in one contract. Or, a majority of their sales comes from a single, locally owned business. Even the most risk-tolerant buyer doesn't want to take the chance that the company's revenue could disappear overnight. If more than a third of your profits come from one customer, or one closely-related group of customers, you need to create and implement strategies to expand. Diversify your services. Secure new customers. It will make your company more valuable. company similar to yours just sold for $43 million, and you got a valuation recently that says you're worth $40 million. Making snap judgments about any offer based on emotion or incomplete data is not wise or productive. The real truth is that, until you have a willing buyer in front of you, the value of your company in the marketplace is exactly zero. So it can be very useful to sit down with a wealth management professional to clarify exactly what you want to accomplish when you sell your company. You must determine whether it's a yacht, or enough money to launch your next company, or a trust fund large enough that your great-grandchildren will be able to go to the college of their choice. How much money it will take to achieve those goals? Then, with your goals, motivations and priorities clear, and with everything else in place, you'll be in the best position to make a successful and profitable sale. You will understand "why" you are selling and helps you realize that the sale is helping you reach an important goal in your life. As the Boy Scout motto emphasizes, "Be Prepared," even when it comes to selling your company. Being prepared to sell improves the likelihood the transaction will be completed, reduces stress during due diligence, and enhances the value of your company. l F O N Know Your Personal and Financial Goals Out of nowhere, a buyer offers $35 million for your company. That's a huge amount of money, but another Taco Improves Bumblebee Variable Speed Circulator Fuel Mizer: Outdoor Reset Switching Relay The FuelMizer™ (SR501-OR) is a microprocessor-based control designed to regulate the supply water temperature of a single boiler, based on the outdoor temperature. The FuelMizer is a boiler reset control and switching relay in one unit; it is ideal for retrofit application, but may also be used in new installations as well. www.taco-hvac.com or (401) 942-8000. Taco Taco has announced its second generation BumbleBee variable speed, wet-rotor circulator. The high-efficiency, ECM motor requires only 9 to 42 watts, depending on the load. The pump can operate in three different modes: Delta-T (∆T) differential temperature mode for fixed settings from 5°F to 50°F difference between supply and return sensors; Fixed speed for a specific gpm; Set point mode to meet a desired temperature (65°F to 220°F). IFC included in carton. www.taco-hvac.com or (401) 942-8000. Taco Thermo Pride New A/C & Heat Pumps Thermo Pride's line of high efficient oil, gas and propane warm air furnaces has been expanded to include their new A/C condensers, modular air handlers and heat pumps ideal for Hybrid Heating. The new models feature a rugged metal louvered cabinet design, quiet operation and ease of installation. All models come standard with a 10-year compressor, coil and parts warranty. Premiere XT and LX-14 models come with a "Peace of Mind Plus" replacement warranty. For more details go to www.thermopride.com or contact them directly at 800-348-5130. Thermo Pride www.fueloilnews.com | FUEL OIL NEWS | Spring LITERATURE SHOWCASE 2013 3