Bank of America has been under financial pressure during the past year. The Federal Reserve Bank has asked Bank of America for a plan in the event that the bank encounters further losses. The bank told the Federal Reserve that they would sell branches to raise capital quickly should financial conditions warrant it. 

One problem with this plan is that when an asset must be sold quickly, the price tends to be very low. I have advised business to offer a low price when they want to buy assets from companies needing quick capital The seller only has a short time to make a sale and the price is going to be disappointing. 

In a few cases I have advised a failing business, especially one who must end business quickly, to sell assets as fast as possible. The price for customer lists and assets are lousy. 

One restaurant was failing. The owner had an offer of $20,000 for fixtures and equipment. I advised him to wait and market the equipment over the next month. The equipment sold for $37,000, still below cost; but it was far better than taking a quick deal. 

The Lord spoke to Amos and said, "As a shepherd saves from the lion's mouth only two leg bones or a piece of an ear, so will the Israelites be saved, those who sit in Samaria on the edge of their beds and in Damascus on their couches.” (Amos 3:12, NIV) When circumstances spiral down, time is not your friend.  When under pressure, the longer we wait to act, the more we lose. Better to save two leg bones from a lion than wait and save only the ear.

Steve Marr, Your Christian Coach

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