Blog

From the monthly archives: February 2011

We are pleased to present below all posts archived in 'February 2011'. If you still can't find what you are looking for, try using the search box.

Factors That Negatively Impact Business Value

The following are factors that can have a negative impact on the value of a business and some are issues that can rear their ugly head during the due diligence investigative period. Keep in mind that this list is a compilation of potential problem areas and do not apply to all types of businesses. Accidents New competition in the market Changes in technology Equipment obsolescence Facility obsolescence Market shifts Declining Revenues Poor Financial Records is one of the biggest reasons businesses do not sell or sell at a value considerably less than market value. Interest rate flux Low margins Capital improvements needed Lack of Supplier Diversity Lack of Customer Diversity - If too much business is concentrated in too few customers, the risk factor is increased. Should one or more of the customers discontinue patronage of the firm, revenues will be seriously impacted. Uncollectible receivables Low backlog Restricted cr ...

Read the rest of entry »

Lifestyle Business - Is its Meaning Changing?

There's always been lots of discussion about what, exactly, defines a lifestyle business. You can ask 10 people and you'll have 10 different answers.

But is it an antiquated term that has no bearing in the world today? There are many small business owners who are living proof that you can work much less than popular traditional wisdom would have you believe and still run a very successful, multi-million dollar business -- and still have time for coaching your kid's sports team, playing golf or tennis during the week, growing a vegetable garden, taking karate lessons, or socializing with people other than business associates.

With trends as they are today, will the next generation make the term the norm as the definition of small business?

Read More - NY Times Blog Post

Finding The Skeletons in Your Closet to Avoid Problems During the Business Sale

Due Diligence is the when the buyer reviews all aspects of the company to uncover any warts, wrinkles, and....skeletons in the closet. This step is necessary in evaluating what risk is involved for the buyer in making the acquisition. Skeletons found in due diligence, however, should not normally break a deal but they will be negotiating points on the way to an agreement.

Read the rest of entry »