InTents August/September 2023 - 20

" EVEN THOUGH
RETIREMENT IS
THE OBJECTIVE, IT
MIGHT NOT HAPPEN
IMMEDIATELY. "
GETTING READY
Smith and Sensenig wisely began
planning their retirements well
in advance. Kevin Zwierzchowski,
owner of Z Rental Consulting (ZRC),
suggests starting this process at least
five years ahead of the planned exit.
Located in Novi, Mich., ZRC works with
equipment rental business owners in
the areas of " sales representation and
fair market business evaluation. "
The first step in any planning process
is to establish a solid relationship with an
When Marlin Sensenig, president of Tents For
Rent, started his business, his intention was
always to bring his children into the operation.
Currently, three of his six offspring are
actively involved. Shown here is an example
of a typical wedding the company stages.
Photo courtesy of Tents For Rent LLC.
attorney and a CPA , he says.
" Having a strong CPA will help to
present the financial information and
having a trusted attorney will help in the
explanation of the legal issues during the
process, " Zwierzchowski explains.
The amount of financial information
he says buyers like to see is considerable.
(Family members contemplating taking
over the business may want this as well,
especially if not intimately involved in its
operations. It also may be necessary if
outside funding is required.)
Some of the documentation
Zwierzchowski collects includes:
* Three years of annual profit and loss
(P&L) statements and balance sheets
* Three years of monthly P&Ls and
balance sheets
* Detailed general ledgers for the
past three years
* Three years of capital expenditures
(CapEx)
* Current rental asset information
(original equipment cost, date
acquired by rental class)
* Historical customer information
(revenues by customer, profitability
by job, etc.)
* Projections/budgets
* Future customer commitments
" Lenders are requiring more
financial information to have a better
understanding of normal results of
business in this space, factoring in
COVID and spikes from demand after
COVID, " Zwierzchowski explains. " It's
important for owners to understand the
need to have solid financial information
about their business in order to present
it most favorably. "
Smith agrees, noting that one thing that
helped during his selling process was that
the financials were in great shape, thanks
to then-chief financial officer Cherie
DeVore. He advises timely documentation
of any blips in the financials rather than
trying to recall them after the fact.
An important component in the
planning process is the quality of
the company's asset base, says
20 intents aug-sept 2023

InTents August/September 2023

Table of Contents for the Digital Edition of InTents August/September 2023

InTents August/September 2023 - Cover1
InTents August/September 2023 - Cover2
InTents August/September 2023 - 1
InTents August/September 2023 - 2
InTents August/September 2023 - 3
InTents August/September 2023 - 4
InTents August/September 2023 - 5
InTents August/September 2023 - 6
InTents August/September 2023 - 7
InTents August/September 2023 - 8
InTents August/September 2023 - 9
InTents August/September 2023 - 10
InTents August/September 2023 - 11
InTents August/September 2023 - 12
InTents August/September 2023 - 13
InTents August/September 2023 - 14
InTents August/September 2023 - 15
InTents August/September 2023 - 16
InTents August/September 2023 - 17
InTents August/September 2023 - 18
InTents August/September 2023 - 19
InTents August/September 2023 - 20
InTents August/September 2023 - 21
InTents August/September 2023 - 22
InTents August/September 2023 - 23
InTents August/September 2023 - 24
InTents August/September 2023 - 25
InTents August/September 2023 - 26
InTents August/September 2023 - 27
InTents August/September 2023 - 28
InTents August/September 2023 - 29
InTents August/September 2023 - 30
InTents August/September 2023 - 31
InTents August/September 2023 - 32
InTents August/September 2023 - 33
InTents August/September 2023 - 34
InTents August/September 2023 - 35
InTents August/September 2023 - 36
InTents August/September 2023 - 37
InTents August/September 2023 - 38
InTents August/September 2023 - 39
InTents August/September 2023 - 40
InTents August/September 2023 - 41
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InTents August/September 2023 - 43
InTents August/September 2023 - 44
InTents August/September 2023 - Cover3
InTents August/September 2023 - Cover4
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