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From the monthly archives: May 2007

We are pleased to present below all posts archived in 'May 2007'. If you still can't find what you are looking for, try using the search box.

More Buyers Are Looking For Small Business Acquisitions in Houston

Investment groups and baby boomer corporate executives looking to get into action with companies of their own are making small businesses hot prospects these days. Buyers have money to spend and are turning more frequently to the local landscaping company or delivery company as good investments. There's no question that Houston-area small businesses are becoming more frequent targets for seasoned buyers currently combing the marketplace for investment opportunities. Houston's business-friendly climate is an attractive incentive for these categories of buyers who are more sophisticated about gauging the risks of acquiring small businesses. As a result, they are going after privately-held, well-oiled enterprises with an annual profit of at least $100,000. Manufacturing, trucking, distribution, and service-sector businesses are a few on the list of popular targets. Proof that the buying spree has heated up in Houston is partly in the growing ranks of business owners consulting with business brokerage firms ...

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Houston Small Business Owners Confident In Current Economic Climate

Administaff Announces Results of Business Survey and Compensation Data HOUSTON--(BUSINESS WIRE)Nearly 86% of small business owners say their companies are either growing as predicted or at a faster pace than forecasted, according to a Business Confidence Survey released May 8, 2007 by Administaff, with Headquarters located in Houston and a leading provider of human resources services for small and medium-sized businesses.Most of the companies – 81% – said they were positive about business conditions for the remainder of 2007, with 46% saying they plan to hire more new employees this year than they added in 2006. To fill positions, 52% said they are hiring full-time employees, while 16% said they planned to hire part-time workers.Administaff also released compensation data compiled from its client base of more than 5,700 small and medium-sized businesses throughout the country. A comparison of first-quarter data against the same period in 2006 shows that average compensation is up 6.6%.“It’s clear from the sur ...

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Houston and The Realignment of America

The Wall Street Journal had a quite long and comprehensive op-ed a couple of days agao titled "The Realignment of America" on demographic shifts since 2000. While getting the link, I also noted it has been one of the most popular - and the most emailed - stories that day at WSJ. The graphic is pretty cool, and makes it look like everybody is headed to Texas (or maybe Arkansas?). He analyzes the top 50 US metros, and puts them into four categories: Start with the Coastal Megalopolises: New York, Los Angeles, San Francisco, San Diego, Chicago (on the coast of Lake Michigan), Miami, Washington and Boston. Here is a pattern you don't find in other big cities: Americans moving out and immigrants moving in, in very large numbers, with low overall population growth.... This is something few would have predicted 20 years ago. Americans are now moving out of, not into, coastal California and South Florida, and in very large numbers they're moving out of our largest metro areas. They're fleeing hip Boston a ...

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Boomers vs. Gen Y Business Owners -- Survey by Amex

We report on economic conditions and other issues that affect the Small Business Community and its future outlook. This survey is important because it is essentially an interview with the generations that hold, in their hands, the future impact of small business on our economy. The outlook is encouraging. Let's preface the Survey with why Small Business is so important to our economy. Small Businesses make up 97% of America's exporters and produce 26% of all export value. (Fred Smith, FedEx Corp. CEO May 2006) Small Businesses employ 50 percent of the country's private sector workforce (U.S. SBA June 2006) Small Businesses have generated 60 to 80% of net new jobs annually over the last decade (U.S. SBA June 2006) The estimated 25.8 million Small Businesses in the United States represent 99.7% of all employer firms. (U.S. SBA June 2006) In a Head-to-Head Match-Up Generations Agree Experience Gives Boomers the Advantage in Business; Gen Y More Passionate but Baby Boom ...

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Selling A Business? Use A Team Of Professionals

Once a business owner has decided to sell the business, he needs to determine who will handle the process. The likely team of experts to get the deal done will consist of a business broker, an attorney, and an accountant.  Utilizing professionals to facilitate the process is key to successfully selling the business within the shortest time frame for the most favorable price in the optimal confidential environment. The right professionals are those who specialize in business transfer transactions. Each understand the role they play in the deal.

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Selling Small Businesses - What Is Your Business Worth?

When it comes time to sell your business, knowing how to enhance its value and planning ahead are key to doing it on your terms. Selling a business can be complicated and very time consuming. Since the average business sale transaction takes anywhere from four to 12 months, business owners need to be in the right frame of mind when they embark on the process. A big mistake that is often made is not planning well enough in advance to optimize its value and not having a strategy for exit. THE CONCEPT OF VALUE The concept of value was set forth as early as the first century, B.C., when Publilius Syrns wrote his Maxim 847: "Everything is worth what its purchaser will pay for it," or as an early British economist, Samuel Bailey wrote in 1825, "Value, in its ultimate sense, appears to mean the esteem in which an object is held." So, a closely held business may have a high value to its owner resulting from the efforts expended to build it, but it may have a lower value to a potential buyer who may be more ...

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Certified Business Brokers Announces the Successful Sale of Papas Restaurant and Grill

VR Business Brokers in Dallas Helps in Ownership Transition of Fisher Cabinet Works TYLER, TX -- (MARKET WIRE) -- 11/06/2006 -- VR Business Brokers announces the sale of Fisher Cabinet Works, which designs and manufactures custom cabinets and offers several lines of pre-finished cabinets. Pete Fisher Jr., the founder of Fisher Cabinet Works (http://www.fishercabinet.com/), engaged VR Business Brokers in Dallas to sell the company. Terms of the transaction were not disclosed. Fisher Cabinet Works, based in Tyler, Texas, was established in 1992 and employs approximately 50 workers. New owner, Tami Wolfe, plans to keep the headquarters in Tyler and has launched an expansion with a new showroom in Plano at Lakeside Market on Preston Road. "I was attracted to Fisher Cabinet Works because nobody in the Dallas / Fort Worth area offered their high-quality craftsmanship at an affordable price," said Wolfe. "Now that we've opened in Plano, builders and homeowners are learning what we can do to improve the aestheti ...

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Kissing Your Business Goodbye

Kissing your business goodbyeExperts say it’s never too early to start thinking about selling. In fact, they suggest developing an exit strategy long before that next business opportunity beckons or it’s time to retire. “Things can be done today that can have big impact on how valuable the business is 20 years from now,” says small business expert Jeff Cornwall. David Doyle, director of the Tennessee Small Business Development Center at Southwest Tennessee Community College in Memphis, agrees. “Grow the business to sell it,” Doyle says. “Don’t let the day-to-day activities of the business prevent you from being able to focus on business growth.” Doyle and Cornwall also say it’s vital that business owners position businesses to run without them. “If all of what is in your business is based on you and your relationships, it doesn’t have real value in the business world without you,” Cornwall says. “You have to make sure the business is independent of needing you over the long term. If you have an accounting fir ...

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Buying a Business? 14 Common Business Buyer Mistakes

The following is a discussion of fourteen common mistakes made by first-time or novice Buyers in their search for a business to purchase. Use this checklist to help you from making the same wrong moves. (1) Inadequate Assessment of Capital Resources When a business broker attempts to QUALIFY A NEW BUYER in terms of his financial resources, the primary Buyer capabilities of interest are: cash on hand available for a down payment additional funds available for working capital credit or borrowing capacity From experience, brokers recognizes the necessity of having a reserve of funds for working capital including, operating costs, transition costs, changes desired by the Buyer after purchase, additional advertising and a safety margin. The BUYER'S ASSESSMENT of his financial resources should be made prior to searching for a business to buy in order to focus efforts on acquisition candidates that fit financial capabilities. (2) Unrealistic Expectations Owning your own business is ...

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Buying or Selling a Business? What is the CPA's Role?

Whether you are buying or selling a business, your accountant can make or break the deal. If you choose to engage advisors, such as a CPA, to assist you in the sale or purchase of a business, it is important that they be deal friendly and transaction experienced. They must have a clear understanding of your objectives and seriousness in getting the transaction completed. In many instances, the sale of a business fails to close because of a CPA's actions or lack thereof. For instance, the buyer's accountant makes too many demands of the seller due to the lack of understanding of the due diligence process or the documentation that should typically and reasonably be provided by the seller. Certainly, you want your accountant to look out for your interests, but not to the point where the demands are so strenuous that the other party walks away from the deal. The failure of the seller's accountant to provide financial records and information in a timely manner to the buyer is another way to kill a deal. ...

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