After six years of the economy being in the tank, it’s exciting to see it begin to roll again. However, now there’s a new trend developing that, if it continues, will certainly have a long-term detrimental effect on our economy and the way we live.
Small business owners are selling their businesses to big companies at an alarming rate. The turnover is, in large part, due to the impact of local, state and federal level government regulations such as those having to do with healthcare, OSHA and other labor regulations, Department of Revenue audits and banking regulations.
The sheer volume of business-related regulations is enough to overwhelm any small business owner and deter potential entrepreneurs from buying into a small operation. This is not only because of all the hoops owners have to jump through to stay in compliance,but also because of the huge financial ramifications they face if they fail to comply.
Big businesses are able to gobble up these smaller businesses, because their size enables them to take on government regulations and fight them when they need to do so.
This is particularly disturbing, because it means a move toward the extinction of small businesses. That not only limits opportunity for individuals but it also could have a far-reaching economic impact.
Small businesses have the ability to absorb market turns much better than large companies. With the economy in the hands of a few instead of the many, market swings will become much more pronounced with massive layoffs during downturns.
At Adams & Sullivan, we want small businesses to succeed. We work with owners to help them weave through the morass of regulatory red-tape by providing good initial and ongoing legal advice and support to preempt problems and handle potential issues proactively. We also keep abreast of issues that may impact our small business clients and provide counsel accordingly.
Should a small business owner choose to sell or an entrepreneur wish to purchase an existing business or start a new one, we provide counsel to ensure they are well-equipped with the information they need for a successful transaction and healthy future.