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From the monthly archives: July 2010

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

Tip #13: Keeping Up With Technology Adds Value to Your Business

Not all businesses need to have cutting edge technology, but a company can't fall too far behind. Buyers will be concerned if they must make a large investment in the latest technology to get the company to a competitive level. A business owner should do the research and purchase the necessary technology to keep the company on par in its industry or be prepared to accept a lesser value for the business.

Also see: A Strong Online Presence Adds Value

Value Driver #4: Human Capital and Quality of Workforce

When a business for sale is being evaluated by a prospective buyer as a possible candidate for purchase, the quality of the human element will be considered. The staff is a major component and the backbone of any successful business operation. Any aspect that reduces risk in the continuity of the business under new ownership adds value. A stable, skilled, quality workforce is one of the top value drivers that contributes to the purchase price of a business for sale. It is important, therefore, that you, as the business owner, keep your key employees, they are your business. Buyers look for situations where management and / or key employees want to stay for the long term. The quality of the workforce, including experience, expertise and depth of knowledge will be considered. An in-place team that can provide continuity and assist in the growth of the business under new ownership is a valuable asset. If a company’s success is reliant on capable, well-trained employees – not the owner – i ...

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5 Months to Capital Gains Tax Hike

The capital gains tax rate is presently at historic lows at 15%. However, effective Jan 1 2011, this rate will increase to at least 20%, which represents a 33% increase overnight. Congress has not yet finalized the amount of the increase and it may be significantly higher. This does not include any other taxes that kick in on Jan 1, 2011. It is not too late for business owners considering a sale to get the business on the market with the goal of selling by Dec 31 2010 in order to keep more of their proceeds.

Avoiding the Deal Breakers When Selling A Business

Most small business owners are not familiar with the dynamics of selling a business because they have never sold one before. Most people only buy or sell a business once in a lifetime. While there are lots of potential deal breakers, avoiding the following ten mistakes will mitigate the possibility of an aborted transaction. Neglecting running your business as usual. Overpricing the business. Breaching the confidentiality of the sale. Not preparing for the sale far enough in advance. Not anticipating buyer requests and questions. Not expecting to stay long enough for the transition period. Not expecting to sign a non-complete agreement. Being inflexible in structuring the transaction, expecting an all-cash deal, for instance. Being unwilling to negotiate. Not faciliting the closing process in a timely, efficient manner. Time is the killer of all deals. Copyright 2007-2013. All articles are authored by Rose Stabler unless otherwise noted. ...

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