From the monthly archives: August 2007

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

Buying a Business - Emotion and Due Diligence

When buying a business, both emotion and due diligence are elemental and essential. Here are 10 key matters to consider when you find that magical business for which you've been searching. It covers important points that are sometimes overlooked when your head is in the clouds during the emotional excitement of a deal. 1) Know that when you own a business it is a lifestyle change. The business becomes part of your family and demands attention. Make sure both you and your family are ready for it. 2) Is it a business that you know and understand? If not, do the research and make sure you learn about the business, its competitors and any changes that are due in the marketplace. There is usually public information available for almost any industry. Find out if there are any industry issues that will positively or negatively impact the business. 3) Make sure it is a business you want to be in. Can you picture yourself working it? It would be a good idea to meet with the owner and discuss in detail what ...

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Selling a Business -- The Final Stretch of the Marathon

Building a business is like running a marathon, not a 40-yard dash. It requires hard work, a well-conditioned work ethic, a high pain threshold, and taking measured steps one mile at a time. But remember to save some kick for the final stretch to the ultimate goal.......the exit. If you want top dollar for your business, you can't appear to be coasting listlessly to the finish line. So how can you kick your business into a higher gear during the last few months or years of ownership? Visit Your Accountant. Remember your silent partner.......Uncle Sam! Before negotiating any deal, it's important to understand the tax implications inherent in a business transfer transaction. Make sure all tax obligations and filings are current and your business accounting records are clean for potential buyer review. Accurate financial statements not only adds to a buyer's comfort level, it more likely will result in a higher sales price. A potential buyer is typically looking for a predictable cash flow from the bus ...

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Now Is The Right Time To Sell A Business -- Are You Ready?

There are many factors that determine right-timing for selling your small business. The financial condition of the company, valuation, growth cycle, profit history, and the current market. But there is one single thing about timing that comes into play that makes all other factors make little is the business owner's emotional readiness to sell. However, if your only criteria in the decision to sell your business is when you are emotionally ready to go, you will be in a weaker bargaining position and you may miss the boat. Value is dynamic and proper timing makes a big difference in the prices paid for business acquisitions. External factors such as the economy, the mergers-and-acquisitions marketplace, industry trends, competition, stock market volatility, investor confidence, interest rates, and geopolitical considerations are cycles of constant change that impact value. Internal conditions within a company, of course, also change – often in combination with external factors, som ...

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