At some point you might be thinking about selling your Company. One of the questions you need to consider is “Am I collecting and reporting data in a meaningful manner?” By this I mean, are you reporting revenues and associated costs by business segments? If you are a commercial printer, do you have data on revenues and costs by Commercial Print; Digital Print; Direct Mail; Fulfillment or Variable Data, among others? If you are a Label Converter, do you have data on business segments such as PS Labels, Booklets; Extended Coupons or Flexible Packaging, to name few? This information is critical to a prospective buyer and as an owner should be critical to you as well.
You should also have budgets for the following year with detail showing how the budgets were prepared. Other important information includes items such as “ABC customer” was only on board for three months last year; Backlog at year end for a certain business segment was X; Growth rate will increase because . . . and so on. You should document why you are ahead, or behind budget.
You need to have a good understanding of how and where you are making, or losing money. Both you and a prospective buyer need to know this information.
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