Ellen McIlhenny - The Smart and Savvy Exit – Management Buy-Outs
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I think the past week’s big news for small business was Friday’s dismal jobs report. My mentioning this is not to be at all political. This disaster – job growth of only 228,000 jobs when there was expected growth of nearly 1 million – was created by politicians on both sides of the aisle. This was not hard to predict. When the government is offering unemployment benefits that would make an individual more money than many small businesses can pay, especially after a year of devastation due to shutdowns, many will stay home and collect their checks. I know you say, Ellen, anyone on unemployment must show they are looking and must accept a job if offered. Well, it is a historical fact that monitoring compliance of these regulations is difficult, and the government has neither the manpower nor the will to crack down.
The bottom line is thousands of small business owners are having great difficulty filling their job openings. Three different owners I talked to in the last couple of weeks talk of candidates not showing up for interviews. That alone is something that a few years ago would have been unheard of, but I am now hearing about people first accepting offers and then not showing up for the first day of work. Some businesses are bonuses to show up for interviews, and others are offering signing bonuses to employees who show up and work for a certain amount of time.
I could understand this happening if we were at full employment, but our unemployment rate is still at 6%, double what it was prior to COVID. Yes, there are some factors that did not exist before. Top of mid would be the school closures forcing working parents to scramble, but studies show that is a smaller impact than you would think. I know this situation in some areas of the country might take some time to fix, but it would be my hope that the government would re-think the extension of the lucrative benefits to at least provide some relief for business owners.
Show Objectives - The Why
Today I will be talking about using a Management Buy-out as an exit strategy.
Next Week: Management Buy-Outs.
Written by Ellen McIlhenny
Owner of CFO Plus Services, a Fractional CFO services firm which also offers Back Office Bookkeeping Services. Author of the business novel The Big Turnaround; How Bad Management Nearly Destroyed an Exceptional Company. Check it out at https://thebigturnaround.com
You can connect with Ellen on any of her #cfoplusservices platforms or firstname.lastname@example.org
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