From the monthly archives: November 2010

We are pleased to present below all posts archived in 'November 2010'. If you still can't find what you are looking for, try using the search box.

Protecting Your Customer List While Selling Your Business

Your customer base is the foundation of your company. Knowing who they are is crucial to your business, which is why potential buyers will want to know as much as possible about your customers.

Therefore, if your are thinking about selling your business, be ready to provide a basic profile of your customer base. However, caution should be taken to protect this valuable asset. Do not share detailed information about your customer list with any prospective buyer until the buyer has taken possession.

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Business Value Driver #3: Customer Diversity

When selling your business, it is important to know that your customer base has a major impact on its value in the marketplace. A diverse customer base means your revenue comes from a number of clients or customers, not just two or three, and preferably comes from multiple sources other than your primary service.

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SBA Loans are Misunderstood These Days - Most Require Collateral

We get email alerts every other week or so from the SBA saying that the 7A guaranteed loan program for buying a business only requires a proven history of stable cash flow that can support the debt payments, which means that goodwill (an intangible asset) can be used as collateral. These SBA email updates also tout that banks using this loan will be backed by the SBA with a 90% guarantee. If the loan defaults, the bank would only be responsible for 10% of the default value, the government would cover the rest. However, this has not been the case in reality, just the opposite is true. Many banks are requiring a high-percentage collateralization of any SBA guaranteed loan in tangible assets such as real estate, equipment, inventory, and accounts receivable. The reason for this disconnect is that banks want more than just the government guarantee these days. They are being more careful and want more security. Many businesses do not have enough hard assets to cover a loan and real estate values aren't cutti ...

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