An SME can report strong results despite ageing machinery and delayed investment. During a sale, however, the capital required to maintain production may affect the company’s valuation and the terms of the transaction.
An SME can report strong results despite ageing machinery and delayed investment. During a sale, however, the capital required to maintain production may affect the company’s valuation and the terms of the transaction.
Many SMEs own the factory, offices or premises where they operate. For the entrepreneur, the property often represents financial strength and the result of investments made over many years.
If production continuity, know-how and key decisions depend on one production manager, a valuable employee can become a significant risk during the sale of an SME.
Supplier dependence arises when an SME cannot ensure operational continuity, margins or delivery times without relying on a small number of key suppliers.
Pozzi Milano continues its external growth strategy with the planned acquisition of IVV Italia and Forma Italia, two Italian companies operating in the tableware, home decor and giftware sectors.
Pozzi Milano continues its external growth strategy with the planned acquisition of Thun’s former Unitable Division, a business unit operating in the design and home decor sector.
When an entrepreneur thinks about the value of their company, the focus almost always goes to revenue, margins, EBITDA and growth prospects. Much less often, the starting point is an apparently operational question: how much capital is tied up in inventory?
For an SME, winning a major customer can feel like a turning point. Revenue increases, reputation improves, and the company gains credibility with banks, suppliers and the market.
In many SMEs, the same scene repeats itself every week. An important customer calls the entrepreneur directly. The most delicate negotiation lands on their desk. An out-of-policy discount needs their approval. The sales team manages the relationship, but when the decision really matters, the founder steps in.
There are companies that work very well, as long as the same person is always present. The founder knows the clients, decides prices, solves production problems, deals with the banks, reads the numbers, manages suppliers and keeps people aligned. Everything works because he or she is there. Always.