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(February 2012) posted on Mon Feb 13, 2012

Amnesty, audits and getting your finances together in 2012

By Robin Donovan

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If you’ve been hoping – or holding out – for a high-volume business year, Terry Mackin doesn’t have good news for you. A managing director of Generational Equity, he’s the guy you call when you’re ready, or forced, to sell your company, which is to say, not a sign guy.

So, why listen to him? First, because he spends all day evaluating companies, trying to match interested buyers and sellers. He knows what makes a company succeed and fail; most companies are at one of those two points when they call him, so he keeps up on the politics that impact what a company is worth. He also knows what make a company valuable beyond the owner’s personal sentiments

Several factors, Mackin said, play into the slow growth businesses can expect in 2012. “Banks are still not doing much in the way of lending, or providing business owners with lines of credit. Whatever growth you anticipate over the next couple years is going to come solely from what you’re able to draw out in net profits over the next couple years,” he explained.

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In addition, Mackin said companies that have cut fat from their expenses may slowly expand, but they won’t replace their losses one-to-one. Some laid-off employees have already been replaced by new technology. Offices that once happily employed an accountant, office manager and an HR director now have a frazzled assistant and a copy of Quickbooks. This is good for bottom lines, but tough for those who crowd unemployment offices.

Technology remains our silver-lined cloud. It eliminates jobs, but saves money. It breaks and causes headaches, but simplifies processing and production. And every year, there’s more to master. “To be viable going forward, you have to understand what’s out there . . . if you’re not, at some point down the road, you’re going to be a non-factor in your own industry,” Mackin warned.

Washington D.C. raises more questions than hope for small businesses. A recent, two-month extension on payroll tax cuts means lingering uncertainty about whether the Bush tax cuts will be allowed to expire, which would effectively raise taxes for employees and employers.