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From the monthly archives: October 2008

We are pleased to present below all posts archived in 'October 2008'. If you still can't find what you are looking for, try using the search box.

Exit Planning – It’s Never Too Early To Plan The Sale of Your Company

There are more than 15 million family businesses in the United States, ranging from giants like Wrigley and Marriott to the local corner grocery store. Yet, history tells us that less than one-third of family owned companies will make it to a second generation.One reason for the disheartening statistic may be that business owners tend to forget about succession planning. It’s often not a priority and it definitely can be an emotional issue. Many owners just can’t imagine the business succeeding if they aren’t involved or they may be too busy with day-to-day operations to take the time to adequately plan for someone else to take the reigns when it’s time to step aside.But as more and more baby boomers approach retirement age, the time for succession planning is today. Tomorrow may bring a serious illness, disability or even death. Having a well thought out plan is critical to the continuation of a business, particularly for a small, family-run operation.Plan early. Developing a succession plan early will help ...

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Credit Crunch and SBA Lending for Small Business Acquisitions

Despite the current credit crunch, well capitalized community banks still have money to lend for business acquisitions. The SBA 7(a) loan program is an excellent way for both bank and borrower to tread through this troubled business environment. While many large financial institutions are licking their wounds from the mortgage mess and the credit market contraction, community banks who are well capitalized and who traditionally don’t participate in these arenas are still a viable source of funds for small business acquisitions. Because SBA loans have features that reduce risk for banks, they are a valued tool for banks in this environment. And because they offer lower down payments and longer terms, the resulting lower monthly payments are attractive to borrowers. The US Small Business Administration (SBA) enables private lenders to make loans that they ordinarily would not be able to make by guaranteeing that a portion of the loan proceeds will be repaid to the lender in the event of a default ...

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