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From the monthly archives: July 2008

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

Buying A Business - Huddle with the Experts

Acquiring a business is a team effort and finding the right business broker (intermediary) is just the start of building your squad. Here's a very common question posed by prospective buyers: "I'm ready to purchase a business that's currently available for approximately $1.1 million. I feel I need a person who can help me with the due diligence, valuation and general advice. Where can I find such a person?" The answer is: You don't simply need one person. Making a business acquisition is a team effort, and your business broker, also known as a business intermediary, is the quarterback. The broker drives the deal through communication with the buyer, the seller, the attorney and the accountant. We do everything to move the deal along, including coaching and some psychology. It's an extremely emotional process. Sometimes, the reason deals don't get done is that emotions get in the way. A good intermediary will take the emotion out of the transaction. Feeling an emotional connection to the business you inten ...

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Selling Your Company? What Is It 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 TWELVE 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 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 interested in return ...

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Structural Changes in our Economy and our Businesses

Keynote speaker at the recent International Business Broker Association last week in Denver, Jerry Osteryoung, Executive Director of Global Entrepreneurship at FSU, was kind enough to allow this reprint of his report concerning the future economic changes that will be necessary in our society and the way we do business in order to cope with rising fuel prices and the diminishing oil supply. "The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency." ~Bill Gates With gasoline hitting $4 a gallon and no end to the increase in sight, it is time to start thinking about the structural changes that we are going to experience in our economy and in our businesses. With the exception of the internet revolution, this is one of the most dramatic changes that has come along in the last 50 years. A recent report showed that if th ...

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A Buyer's Litmus Test to Purchasing a Business

When preparing for any invasive procedure, you would want to first address the issues that are the most crucial when deciding if further exploratory examination is warranted. Therefore, every person looking for a business to buy should ask key questions that will cut right to the chase in order to decide if a particular business warrants their further focus, time, and in-depth scrutiny.

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A Road Map Is Key To Buying A Business

Buying a business takes time and planning. Just as it would be sensible to pre-map a road trip through unfamiliar territory, it would be practical for a first-time buyer to develop a plan to navigate the path to business ownership. Charting the route is key to buying a business and becoming your own boss.

If you try to look at every business opportunity out there, you would be spinning your wheels and getting nowhere. You need to establish your own weeding-out process in order to streamline the course towards business ownership, rather than taking a circuitous route with too many detours.

Here are six (6) milestones to achieve before embarking on your trip to the business-for-sale marketplace.

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Do You Need An Attorney When Buying A Business?

Many buyers do not know if or when an attorney may be needed in the process of buying a business. That question always comes up when chatting with people beginning the process of searching for a business to buy. As a rule, it is recommended that buyers should consult their attorney for the review of any legal documents. Some of the types of documents involved in closing a business purchase that may be candidates for attorney review are: Covenant not to compete Employment contract(s) (for existing employees or the current owner) Review of the escrow instruction Review of promissory note Review of new or assumed lease Review of any agreement produced by the other party Checking for any pending lawsuits against the business, or any other liability problems Attorney's can draw up non-compete agreement for the seller to sign, as well as employment contracts for key employees who are critical to the operation of the business. You don’t want the seller or manager ...

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Houston Business Acquisition Market Will Remain Brisk

The current status of the small business marketplace in Houston is dynamic. Buyers in every category are plentiful, our economic position is one of the top in the nation, business policies are in place for continued prosperity and growth, interest rates are at historic lows, and capital is available for business acquisitions. Fueling the Houston market are the different categories of buyers: Individuals, Strategic Buyers, and Investment Buyers. For example, a variety of people in the Individual Buyer Category are: early baby-boomer corporate retirees corporate refugees who have suffered a downsize foreign buyers seeing U.S. businesses as investment opportunities while the dollar is still valued lower against their own currency 30-something-up-and-comers aggressively buying and building Strategic and Investment Buyers are also actively looking for opportunities to take part in Houston's prosperous future outlook. Increasingly, corporate America, both public and privately- ...

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