Indianapolis, IN, August 18, 2009 – Sunbelt Indiana Business Resource, the place to go to buy or sell a business®, is pleased to welcome Dick Parks as a business intermediary. Parks is the latest addition to Sunbelt’s professional business broker staff which services the business communities of Central Indiana.
“We are excited to have Dick join our team of professionals,” said Brian Knoderer, Senior Partner at Sunbelt Indiana Business Resource. “Dick brings rich experience in helping the buyers and sellers of Main Street and Small Middle Market companies.”
Mr. Parks has provided a wide range of business counseling, financial advisory, and acquisition and integration services to business owners and companies of varied industries as an owner of his own business consulting company. His experience as a business owner and financial expertise makes Dick a great asset to anyone considering selling their business.
Additional information is available from Dick Parks by telephoning 317-218-8621. He is also available to the news media on a continuing basis as a source of information and comment about developments affecting the efficient, economical and profitable transfer of business ownership and on economic trends affecting the business community.
Monday, September 21, 2009
Thursday, September 17, 2009
Senior Partner Brian Knoderer on Sunbelt Radio
Tune in this Friday, September 18, hosts Pino Bacinello and Matt Ottaway will have Brian Knoderer, Senior Partner at Sunbelt Indiana Business Resource in Indianapolis, IN on the show to discuss hotels and motels.
Click here- http://www.modavox.com/voiceamerica/vshow.aspx?sid=1574 to tune into the show live or view the "Episode Directory" in the middle of the page to listen to our archived shows.
Click here- http://www.modavox.com/voiceamerica/vshow.aspx?sid=1574 to tune into the show live or view the "Episode Directory" in the middle of the page to listen to our archived shows.
Tuesday, September 15, 2009
Restaurant Financing 2009 Update Re-cap
Restaurant Financing 2009 Update Re-cap
-From Colemanpublishing.com
September 15, 2009
2009 Restaurant Financing Update
-Roughly 50,000 SBA loans since 2000
-$11 Billion 7(a) and 504
-1 out of 9 SBA Loans finance restaurants
-15% failure rate
-12% of all Charge-offs since 2000
-1 Million Restaurants in United States
-(1 Restaurant for every 320 Americans)
Nathaniel Booker, President of First Innovative Financial Group, Inc. explains, "Quite often many of the deals that we have done are in strip centers, sometimes in malls. This is why it's very critical underwrite the business.
When you underwrite the business, you're underwriting the owner, management is very critical.
You want someone who has experience operating a restaurant. If they are opening up a second or third location you mitigate your risk of loss. When you're opening up a new location you need projections that are listed and supportable. Many of them don't do what I consider very critical analysis regard to table turn.
Chris Hurn, President & CEO of Mercantile Capital Corporation explains, "I want to see that they know their space well. If they're a sit down or fast casual, knowing what else is around that particular location is helpful.
"I'm a big believer that you can tell a lot about a company with the kind of measures restaurants have in place to try and make it such that the employee's enjoy what they do and then actually show it to the customers as well.
"Is the experience delivered consistently every single time? In the case of restaurants, do the waiters or waitresses check their attitudes at the door and they put on a performance when they're there. These are all non-financial, intangible items, but it's important to know that. It helps a lender contemplate doing a particular loan to know some of these things because it gives you a better feel for what this concept is going to be like and whether they should actually do it or not.
-From Colemanpublishing.com
September 15, 2009
2009 Restaurant Financing Update
-Roughly 50,000 SBA loans since 2000
-$11 Billion 7(a) and 504
-1 out of 9 SBA Loans finance restaurants
-15% failure rate
-12% of all Charge-offs since 2000
-1 Million Restaurants in United States
-(1 Restaurant for every 320 Americans)
Nathaniel Booker, President of First Innovative Financial Group, Inc. explains, "Quite often many of the deals that we have done are in strip centers, sometimes in malls. This is why it's very critical underwrite the business.
When you underwrite the business, you're underwriting the owner, management is very critical.
You want someone who has experience operating a restaurant. If they are opening up a second or third location you mitigate your risk of loss. When you're opening up a new location you need projections that are listed and supportable. Many of them don't do what I consider very critical analysis regard to table turn.
Chris Hurn, President & CEO of Mercantile Capital Corporation explains, "I want to see that they know their space well. If they're a sit down or fast casual, knowing what else is around that particular location is helpful.
"I'm a big believer that you can tell a lot about a company with the kind of measures restaurants have in place to try and make it such that the employee's enjoy what they do and then actually show it to the customers as well.
"Is the experience delivered consistently every single time? In the case of restaurants, do the waiters or waitresses check their attitudes at the door and they put on a performance when they're there. These are all non-financial, intangible items, but it's important to know that. It helps a lender contemplate doing a particular loan to know some of these things because it gives you a better feel for what this concept is going to be like and whether they should actually do it or not.
Thursday, September 3, 2009
New SBA Changes
With its release today of SOP 50 10 5(B), the U.S. Small Business Administration dramatically altered its requirements regarding goodwill financing. The current rules, which were implemented on March 1, 2009, restricted lenders' ability to finance goodwill under the 7a program to the lesser of 50% of the purchase price or $250,000, whichever is less.
The new rules released today significantly modify the existing rules. In summary, the new rules provide that if the purchase price of a business includes intangible assets (including but not limited to goodwill, client/customer lists, patents, copyrights, trademarks, and agreements not to compete) in excess of $500,000, the borrower must provide an equity injection of at least 25% of the purchase price of the business to process the loan under PLP delegated authority. The new regulations further provide that the borrower's equity can be any combination of a direct contribution from the borrower and a seller note that is on full standby for minimum of two years. The new SOP provides that exceptions to this new policy may still be submitted under CLP or GP processing.
New requirements effective as of 10/1/09
The new rules released today significantly modify the existing rules. In summary, the new rules provide that if the purchase price of a business includes intangible assets (including but not limited to goodwill, client/customer lists, patents, copyrights, trademarks, and agreements not to compete) in excess of $500,000, the borrower must provide an equity injection of at least 25% of the purchase price of the business to process the loan under PLP delegated authority. The new regulations further provide that the borrower's equity can be any combination of a direct contribution from the borrower and a seller note that is on full standby for minimum of two years. The new SOP provides that exceptions to this new policy may still be submitted under CLP or GP processing.
New requirements effective as of 10/1/09
Subscribe to:
Posts (Atom)
Posts
