Customers If customers get wind that your business is on the market, they will most likely, in about a New York minute, hike on over to one of your competitors to do business. Losing customers affects the value of the business. Employees If employees are told that the business is up for sale, think nano-second. […]
At some point, every business owner will need to think about selling his or her business. This means you’ll need to be ready to overcome a range of obstacles, as the process of selling a business can be both confusing and time-consuming. This is especially true for those who have not gone through the […]
When it comes to finalizing deals, successful negotiations are at the heart of the matter. It only makes sense to think about how to improve your communication skills and to choose a Business Broker or M&A Advisor who is well versed in the art of negotiation. Cultivating Win-Win Situations Achieving a win-win for all parties […]
Between the high demand of businesses in the market, to labor shortages putting stress on small businesses, 2022 may just be the year to sell your business. If you are considering selling your business, be sure to contact one of our agents at Certified Business Brokers in Houston. As the midpoint of the year […]
After decades of hard work, selling your business can be an exciting and rewarding time. Yet, many business owners overlook the importance of focusing on the legal matters associated with sales. In this article, we’ll explore three of the most significant mistakes sellers make. 1. Not Using an NDA The first critical mistake that […]
KEY TAKEAWAYS: Internal and external factors are important considerations when selling a business. Here are issues you should think about when trying to time your exit. There are many factors that determine best timing for selling a small business: the financial condition of the company, valuation, growth cycle, profit history and the current market. Usually, […]
KEY TAKEAWAYS: When it’s time to sell your business, your numbers must tell the right story. Ensure you know your numbers inside and out by following these 9 tips. The lack of financial integrity is one of the most common hurdles encountered during the process of selling a business. Reliable financial records are not only a […]
When buying or selling a business, it is critically important that you evaluate the lease. It is a strange phenomenon that otherwise savvy business people will treat leases as a secondary concern. However, problematic terms in a lease can literally force you to pack up a business and move. This would not only be a […]
Are you thinking about taking the leap of faith into being part of the self-employed — into business ownership? If you are one of those people who have long yearned to be self-employed, to call your own shots and design your own destiny, you must break through all those yeah-buts that have been stopping you. […]
You are the heart of American commerce. You are a small business owner. You’ve built your business up over time. We recognize and applaud your achievements. We are much like you in that nearly all of us have walked in your shoes by owning and running a company ourselves. Now you are considering letting go. […]
Now that the election is over, some Americans are worried that they’re going to have to pay more in taxes in the near future. During the campaign, President-Elect, Joe Biden, wasn’t shy about telling the American public that he wants to raise taxes on the wealthy. That’s a big part of his overall tax plan. […]
An earnout is a type of payment agreement which is sometimes used in a business acquisition. An earnout is a buyer’s commitment to pay the seller a certain amount of the money tied to future performance after a sale. It bridges a valuation gap between what the seller wants out of the business and what […]
The following serves as an excellent checklist for a Buyer in compiling questions to ask the Seller about his business during the Due Diligence period. Potential Problem Areas to be Addressed Changes in law, New competition, Change in technology Foreign imports, Drop in demand, Equipment obsolescence Facility obsolescence, Market shifts, Down trends Employee theft, Interest […]
Closing the deal can be the most challenging part of buying or selling an operating business. Valuations, investigations, and negotiations are complete and now it’s a matter of getting everything into writing in a form that satisfies everyone so that the transfer of ownership of the business can take place. However, you can definitely count on someone […]
A Simplified Checklist When Selling A Business & Closing A Deal – Adjust purchase price This would take care of prorated items such as rent, utilities and inventory up to the time of closing. – Review documents required to be provided by the seller This would be a corporate resolution approving the sale, evidence that […]
The Answer — in a Nutshell: The best time to sell a business is when the business has upward trending revenues, when the industry is in an upturn, when the economy is strong, when there is a multitude of buyers looking for business acquisitions, and when interest rates are low. There are many questions that need to be answered before […]
Kissing your business goodbye. Experts say it’s never too early to start thinking about selling. In fact, they suggest developing an exit strategy long before that next business opportunity beckons or it’s time to retire. “Things can be done today that can have big impact on how valuable the business is 20 years from […]
Whether you are buying or selling a business, your legal counsel can make or break the deal. If you choose to engage advisors, such as an attorney, to assist you in the sale or purchase of a business, it is important that they be deal friendly and transaction experienced. You must articulate your objectives and […]
Closing the deal can be the most challenging part of buying or selling an operating business. Valuations, investigations, and negotiations are complete and now it’s a matter of getting everything into writing in a form that satisfies everyone so that the transfer of ownership of the business can take place. However, you can definitely count on someone getting cold […]
A growing number of investors are selling properties and paying taxes later through a deal structure called a 1031 exchange. Section 1031 of the U.S. Tax Code permits a seller of commercial properties to defer the capital gains obligation if it identifies a replacement property within 45 days of closing the sale. The seller must […]
When buying a business, both emotion and due diligence are elemental and essential. Here are 10 key matters to consider when you find that magical business for which you’ve been searching. It covers important points that are sometimes overlooked when your head is in the clouds during the emotional excitement of a deal. 1) Know that […]
Building a business is like running a marathon, not a 40-yard dash. It requires hard work, a well-conditioned work ethic, a high pain threshold,and taking measured steps one mile at a time. But remember to save some kick for the final stretch to the ultimate goal…….the exit. If you want top dollar for your business, you can’t […]
Administaff Announces Results of Business Survey and Compensation Data HOUSTON–(BUSINESS WIRE) Nearly 86% of small business owners say their companies are either growing as predicted or at a faster pace than forecasted, according to a Business Confidence Survey released May 8, 2007 by Administaff, with Headquarters located in Houston and a leading provider of human resources services for […]
The Wall Street Journal had a quite long and comprehensive op-ed a couple of days agao titled “The Realignment of America” on demographic shifts since 2000. While getting the link, I also noted it has been one of the most popular – and the most emailed – stories that day at WSJ. The graphic is […]
Houston’s economy will continue to flourish for the forseeable future, despite the nation’s credit crisis (Houston Business Journal 11/19/07). The TrendLines report, researched by Transwestern affiliate Delta Associates, projects an average of 60,000 new jobs in the Houston area each year through 2009. Job growth will cause office vacancy to decline and office rental rates to […]
When you are selling your business you should be prepared for the different types of deal structures that may be proposed from various buyers. A business sale often consists of multiple elements like cash at close, seller notes, non-competes, books and records adequate enough for business financing by lending institutions, allocation of assets, capital gains, […]
Since 2005 Houston has been enjoying employment growth at a higher percentage rate than the rest of the U.S. and is anticipated to keep the city’s economic engine running. Houston Ranks Third in Employment Growth in U.S. After peaking late in 2006, the Houston economy has steadily lost momentum over the past six months. Despite […]
Private Equity Groups have excess capital to invest and are looking for business acquisitions. One of the major market shifts for the acquisition of privately-held companies has been the growth in the number of Private Equity Groups (PEGs) over the last decade, they number in the thousands. PEGs have become key players in business acquisitions. […]
There are more than 15 million family businesses in the United States, ranging from giants like Wrigley and Marriott to the local corner grocery store. Yet, history tells us that less than one-third of family owned companies will make it to a second generation. One reason for the disheartening statistic may be that business owners […]
Despite the current credit crunch, well capitalized community banks still have money to lend for business acquisitions. The SBA 7(a) loan program is an excellent way for both bank and borrower to tread through this troubled business environment. While many large financial institutions are licking their wounds from the mortgage mess and the credit market […]
An earnout is a type of payment agreement which is sometimes used in a business acquisition. An earnout is a buyer’s commitment to pay the seller a certain amount of the money tied to future performance after a sale. It bridges a valuation gap between what the seller wants out of the business and what […]
No ten-point list can ever hope to supply you with every imaginable consideration when it comes to buying a business. The following factors – listed in no particular order – should be a good jumping-off point, but feel free to expand on them and dig even deeper to decide that the business you plan to […]
Due Diligence is when the buyer reviews all aspects of the company to uncover any warts, wrinkles, and….skeletons in the closet. No bones about it, 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 […]
Takeaway: A stable, skilled, quality workforce is one of the top value drivers that contributes to the purchase price of a business. 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 […]
This is the question I get more than any other and my answer is YES, Absolutely Yes!! My answer may surprise you, and some may even want to argue, but if you have been in the lending or business brokerage industry for more than 6 or 7 years I think you will agree. When I […]