Many business owners are unfamiliar with the dynamics of selling a company, because they have never done so. There are numerous possible “deal breakers.” Being aware of the following pitfalls and their remedies should help prevent the possibility of an aborted transaction. Neglecting the Running of Your Business A major reason companies with sales under…
Read MoreThe deal is done and you have completed the closing. Now what do you do? You help the new owner because chances are that you have some vested interest in the new entity, and it is in your best interest that the new owner is successful. For example: – there may be an escrow account due…
Read MoreIf you are seriously considering selling your company, you have no doubt considered using the services of an intermediary. You probably have wondered what you could expect from him or her. It works both ways. To do their job, which is selling your company; maximizing the selling price, terms and net proceeds; plus handling the…
Read MoreOne of the most frequently-asked questions by those looking at the independent business scene is: “How many are for sale?” Right on the heels of that question comes another: “How many actually sell?” To determine how many of these businesses are for sale at any one time, and what percentage of these get sold, it…
Read MoreUse the following criteria to separate the serious buyers from window-shoppers. (Add up plus points, subtract minus points. The serious buyer will rate a 6 or above.) Minus Point Factors -4 needs outside financing (excluding home equity) -4 been looking for 6 months or more -3 no available cash -3 still working in corporate world…
Read MoreFamily-owned businesses do have some options when it comes time to sell. Selling the entire business may not be the best choice when there are no other family members involved. Here are some choices to be considered: Internal Transactions Hire a CEO – This approach is a management exit strategy in which the owner retires,…
Read MoreIt has always been the American Dream to be independent and in control of one’s own destiny. Owning your own business is the best way to meet that goal. Many people dream about owning their own business, but when it gets right down to it, they just can’t make that leap of faith that is…
Read MoreDeals fall apart for many reasons – some reasonable, others unreasonable. For example: • The seller doesn’t have all his financials up to date. • The seller doesn’t have his legal/environmental/administrative affairs up to date. • The buyer can’t come up with the necessary financing. • The well known “surprise” surfaces causing the deal to fall apart. The list…
Read MoreYour first question may be, “Just what is Corporate Social Responsibility (CSR)?” We see CSR demonstrated in a variety of ways in areas such as: THE COMMUNITY: o Contributing to local community programs through financial support and personal involvement THE ENVIRONMENT: o Using packaging and containers that are environmentally-friendly o Recycling o Using low-emission and high mileage vehicles where…
Read MorePersonal Goodwill has always been a fascinating subject, impacting the sale of many small to medium-sized businesses – and possibly even larger companies. How is personal goodwill developed? An individual starts a business and, during the process, builds one or more of the following: • A positive personal reputation • A personal relationship with many of the…
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