From the monthly archives: May 2008

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

Selling A Business -- The Process

"I have a medium sized company which I have owned for about 20 years. We specialize in the manufacture and distribution of chemical products and have built a good business over the years. However, none of my children is involved or interested in the business so I am considering selling it. The problem is that I have no idea how to begin the process." Since most people only sell a company once in their lives, the dialog above is not unusual and represents a of our initial contact with most business owners. While I will attempt to answer the question as fully as I can, bear in mind the following points when considering the answer. • If you decide to commence a sales process, you must engage financial advisors experienced in the process to assist you from the beginning of the process • There are whole books written on selling a business so this article only highlights the main points • I have not discussed tax issues. Valuation The starting point is a valuation of the business. ...

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International Business Brokers Association Convenes Its 47th Semi-Annual Conference This Month

The International Business Brokers Association (IBBA®) is having its 47th Semi-Annual Conference this month, June 1 -7, in Denver. The IBBA®, established in 1983, is the largest international non-profit association operating exclusively for the benefit of professionals and firms engaged in the various aspects of business brokerage and mergers and acquisitions. The association represents professional, ethical and practice standards by which its members operate. This semi-annual event is seven days of professional development and top-notch education and networking. Educational and Workshop courses number close to 100 and include such topics as: Up-to-date legal and tax issues that impact business transfer transactions Analyzing and recasting financial statements Techniques for pricing and maximizing value of privately-held companies Succession planning and exit strategies Negotiating the M&A Process M&A Tax Strategies and Deal Structures Solutions to closi ...

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More Businesses already on the market bizbuysell

May 27, 2008 (New York Times)A Crippling Year For Small Business: Few Sales, Tough Cash FlowSmall businesses think the economy is falling apart with little light at the end of the tunnel. The Discover's Small Business Watch index of confidence showed that "only 28 percent of business owners said that economic conditions were improving for their businesses," according to Reuters.Cash flow was a major issue, especially with bank credit hard to come by. Thirty-nine percent of the firms surveyed had cash flow problems over the last 90 days.For small business owners trying to sell their companies, the news was probably more troubling. One of the reasons is that more and more small operations are for sale. Perhaps owners want to cash in before the downturn begins in earnest.According to The New York Times "The country’s largest listing site, bizbuysell, has 50,000 businesses for sale — up from 43,000 this time last year, said Michael K. Handelsman, the site’s general manager.". All of that inventory is moving into ...

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Why Does Houston Have the Second Most Fortune 500 Companies in the Nation?

As Bill Clinton might have said using the phrase he coined in 1992, "It's the Houston economy, stupid." The new 2008 Fortune 500 list of annual rankings of America's largest corporations is out. Houston is called home by the second largest number of the companies on the list, second only to New York City. Houston has been steadily adding to its collection of Fortune 500's for the past several years, while New York's number has declined. Houston had 20 Fortune 500's in 2005, 22 in 2007, and now has 25. But New York City has dropped from 45 to 43. So Houston had a net gain of +5 in one year. But that's using city data, not metro. If you count The Woodlands as part of Houston, we pick up Anadarko, for a total of 26 Fortune 500's and a net gain over NYC of +6. Houston stands well ahead at the #2 spot with Dallas (12), Chicago (12), and Atlanta (9) lagging considerably behind. More and more businesses keep opening in our city and the big businesses keep coming as well. People keep moving here too. Our pop ...

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Fortune Small Business Puts Houston in Top 5 Places for Manufacturing

Fortune Small Business scoured the country for the 100 Best Towns To Live and Launch a Business for 2008, as published in April. They looked for towns that combine a great business environment with alluring leisure offerings. They looked at economic conditions such as local taxes rates alongside natural beauty and easy access to museums, and more. Of the 100 Best Places to Live and Launch, the four major cities in Texas were represented: Georgetown, a suburb of Austin (No. 2), Dallas / Fort Worth (No. 9), San Antonio (No. 34), Stafford, a suburb of Houston (No. 36) Fortune further spells out some of the benefits of the cities chosen. 7 tax-free havens Texas was selected as one of the best tax-free havens with business-friendly policies that can save a proprietor big bucks: Texas No personal income tax, low business gross receipts tax. Although petroleum refining is one of Texas' primary industries, the state's economy relies on a wide variety of fields, including manufacturing, agricu ...

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Houston Leads the Nation in Employment Growth for Metro Areas in U.S.

According to the U.S. Bureau of Labor Statistics' April 29, 2008 release, the Houston Metropolitan Area is still leading the nation in year over year job growth. The stats not only indicate Houston as the hottest job market, it highlights the fact that Texas' other three major metro areas are dominating the job scene as well. Two of the four metros in the U.S. that have added the most jobs are in Texas, Houston being #1 and Dallas/Fort Worth #3. Four of the five top metros with the highest employment growth rate statistics are in Texas, with Houston, again, being 1, Austin #2, San Antonio #3, and Dallas, #5. More proof that Texas is doing better than most states when it comes to economic worries is that the four major Texas cities are being called "recession proof", according to April 29, 2008 article that lists Houston, San Antonio, Austin, and Dallas in the top ten most recession-proof cities in the nation. Among other things, Forbes looked at unemployment data and median home p ...

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Retiring Baby Boomer Business Owners On Economic Radar Screen

What would happen if all the baby-boomer business owners closed their businesses instead of selling them. The implications to our economy are alarming. It would bring about drastic changes to every sector of the U.S. landscape. But they are only a minute part of the picture. When a firm closes its doors, revenues from business and payroll taxes are lost, suppliers lose a source of income from their former customer, landlords lose rent, employees are out of a job, the income taxes those employees pay are lost, and those employees lose buying power. Consequently, sales tax revenues are lost as well. Everyone in the community loses. No one wins. But now let's look at the larger view. Let's look at the landscape of the entire country's economy if all business owners closed their doors.Eight Thousand Americans are turning 60 every day, which means about 20% of baby-boomer business owners will be ready to retire, close their business, or sell it within the next couple of years. About 65% to 75% will be ready ...

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Certified Business Brokers' M&A Group Completes the Sale of Multi-State U.S. Firm to International Strategic Acquiror

HOUSTON, TX -- May 2, 2008 -- Certified Business Brokers' M&A Group (CBB) announced the sale of a privately-held, multi-state non-destructive testing company with headquarters in Houston and regional offices in three other states in the U.S. to a multi-national strategic acquiror. The Houston-based non-destructive testing (NDT) company, which has been providing inspection services to the energy and fabrication industries for over 30 years, engaged CBB to sell the company. Terms of the transaction were not disclosed. The sale was made to a privately-held corporation headquartered in New Jersey that is well-known for providing complete NDT solutions to satisfy industry, academia and advanced NDT needs worldwide. The acquisition was part of the New Jersey company's continuing growth strategy to strengthen their overall position in the marketplace by expanding through niche acquisitions in the markets it serves. Certified Business Brokers (CBB), which has sold more companies in Houston than anyone fo ...

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