- What's for sale? What's not for sale? Does it include real estate? Are some of the machines leased instead of owned?
- What assets are not earning money? Perhaps these assets should be sold off.
- What is proprietary? Consider trademarks, copyrights, patents, software, etc?
- What is the competitive advantage? Does the business have a certain niche, superior marketing, desirable location?
- What is the barrier of entry? Is it capital, low labor, tight relationships?
- What about employment agreements/non-competes? Has the seller failed to secure these agreements from key employees?
- How does one grow the business? Maybe it can't be grown.
- How much working capital does one need to run the business?
- What is the depth of management and how dependent is the business on the owner/manager?
- How is the financial reporting undertaken and recorded, and how does management adjust the business accordingly?
Showing posts with label sunbelt indiana business resource. Show all posts
Showing posts with label sunbelt indiana business resource. Show all posts
Tuesday, November 27, 2012
Some Key Factors in Pricing a Business
The following questions are useful to understand a business and thereby price that business more prudently:
Friday, August 17, 2012
Check out Fox Small Business Center's article on alternative lending options for entrepreneurs
There is much talk these days about the rise in alternative lending sources since the credit crunch really started to squeeze small businesses in late 2008... here is a great explanation of four of those alternatives...
Published August 14, 2012
When the credit crunch began in late 2008, traditional banks tightened the spigots on funding for small businesses. When the big banks said no, small banks and non-bank lenders increasingly said yes. While big banks reject loan applications almost nine out of ten times, and smaller banks approved less than half of small business funding requests, alternative lenders filled the void.
According to Biz2Credit Small Business Lending Index (figures for the July 2012), big banks (institutions with more than $10 billion in assets) approved 11.3% of small business loan requests, while smaller banks gave the green light to 47.4%. Meanwhile, non-bank lenders picked up the slack. Credit unions approved 54.6% of requests, while alternative lenders, such as Cash Advance Network (CAN) and accounts receivable financers, okayed 61.4% of requests for funding from small companies.
So who are the alternative lenders? They are comprised of non-banks, such as credit unions, CDFIs, micro lenders and accounts receivable financers.
To read a full explanation of each alternative lender... click here to read the full article.
Four Alternative Lending Options for Entrepreneurs
www.smallbusiness.foxbusiness.comPublished August 14, 2012
When the credit crunch began in late 2008, traditional banks tightened the spigots on funding for small businesses. When the big banks said no, small banks and non-bank lenders increasingly said yes. While big banks reject loan applications almost nine out of ten times, and smaller banks approved less than half of small business funding requests, alternative lenders filled the void.
According to Biz2Credit Small Business Lending Index (figures for the July 2012), big banks (institutions with more than $10 billion in assets) approved 11.3% of small business loan requests, while smaller banks gave the green light to 47.4%. Meanwhile, non-bank lenders picked up the slack. Credit unions approved 54.6% of requests, while alternative lenders, such as Cash Advance Network (CAN) and accounts receivable financers, okayed 61.4% of requests for funding from small companies.
So who are the alternative lenders? They are comprised of non-banks, such as credit unions, CDFIs, micro lenders and accounts receivable financers.
To read a full explanation of each alternative lender... click here to read the full article.
Tuesday, June 19, 2012
Check out the Top Ten Franchises to Buy...
Check out this great article by BlueMauMau.org outlining the top ten best franchises to buy... it also has a great link to an article with a spreadsheet showing SBA default rates for various franchises... very informative.
Saturday, 2012/06/16
Knowing a franchise's bottom line and the ability to get a return on investment is the holy grail for a franchise investor. That's no easy feat. What Blue MauMau has been able to do is to find chains that franchisees are healthy enough with their earnings to at least pay back their loans more than other brands. So here are the ten best franchise brands in which franchisees have enough staying-power to pay back their lender.
If you are interested in purchasing a franchise, this is a must read.... click here to read the full article.
2012's Best 10 Franchises to Buy, Least Loan Defaults
By BMM, www.bluemaumau.orgSaturday, 2012/06/16
Knowing a franchise's bottom line and the ability to get a return on investment is the holy grail for a franchise investor. That's no easy feat. What Blue MauMau has been able to do is to find chains that franchisees are healthy enough with their earnings to at least pay back their loans more than other brands. So here are the ten best franchise brands in which franchisees have enough staying-power to pay back their lender.
If you are interested in purchasing a franchise, this is a must read.... click here to read the full article.
Friday, June 8, 2012
Top Four Factors in Closing a Deal
- The assurance of a prompt closing - Deals that are allowed to drag are more at risk of falling through. Sellers, buyers, and the related professionals should all be motivated to keep the process moving. This does not mean glossing over issues and concerns in order to close the sale, but dealing with each step of the process in a timely manner. A professional business intermediary can be a big help in keeping the momentum of a sale moving forward.
- How the deal is structured - This includes such things as cash, stock, contingencies, earn-outs, representations and warranties, etc.
- Full price and/or the considerations
- Legal and/or governmental issues - Obviously, the presence of such issues can be a hindrance to the successful closing of a deal. A business owner will want to address these issues before placing a business on the market.
Benefits of Meeting with a Business Broker in person...
Whether you are ready to list now or are considering in the next fews years, as you move forward with the sale of your business, you will want to consider all of your options. Speaking to a qualified business broker is one of the first steps you are going to want to take. You will be better prepared to move forward whether you list with the broker or not. Arming yourself with all the tools available to you is always a good idea. But, do not think a quick conversation over the phone is going to give you a full picture of the advantages that a business broker can offer to the situation.
A qualified business broker can render an initial opinion of value, and recommend courses of action to market your business. In order to do so, you will want them to have a full picture of your business. An on-site meeting can give your potential broker a better understanding of your business. You want them to see it as more than just the numbers. Your business has a flavor, and should you decide to list, the better understanding the broker has the more likely they are to concentrate on that right-fit buyer, the one most likely to see the value and succeed in your business...
Click here to read my full article, and respond with a comment. Would love to hear what you have to say...
Ralana D. Abraham
Business Broker, Dir. of Marketing
Sunbelt Indiana
A qualified business broker can render an initial opinion of value, and recommend courses of action to market your business. In order to do so, you will want them to have a full picture of your business. An on-site meeting can give your potential broker a better understanding of your business. You want them to see it as more than just the numbers. Your business has a flavor, and should you decide to list, the better understanding the broker has the more likely they are to concentrate on that right-fit buyer, the one most likely to see the value and succeed in your business...
Click here to read my full article, and respond with a comment. Would love to hear what you have to say...
Ralana D. Abraham
Business Broker, Dir. of Marketing
Sunbelt Indiana
Are you sure you're ready to sell?
You may have decided it's time to sell, but before you begin the M&A process, you need to take a good, hard look at what you plan to put on the block. Just because you're ready doesn't maean buyers will be interested - particularly if this is the first time you've thought about preparing your business for sale. Prospective buyers won't just scrutinize your business, but they'll also compare it to other opportunities in the marketplace.
Asking tough questions
With the help of your M&A advisors, go over your company with a fine-tooth comb, just as a buyer will during the due diligence stage. Evaluate everything from debt levels to personnel to customer relationships and address any issues that are likely to give potential buyers pause, such as too much business concentration in only a few customers.
To read the full article by the staff at SunbeltMergers.com click here.
Asking tough questions
With the help of your M&A advisors, go over your company with a fine-tooth comb, just as a buyer will during the due diligence stage. Evaluate everything from debt levels to personnel to customer relationships and address any issues that are likely to give potential buyers pause, such as too much business concentration in only a few customers.
To read the full article by the staff at SunbeltMergers.com click here.
Exit Planning:Prepare for an out while you're still in
Running a successful business is time consuming, leaving you little time to plan what may seem like distant succession issues. It's important, however, to outline an exit plan and make succession decisions as early as possible. Evaluating and grooming possible successors or preparing for an outside sale can take years. And it's never too early to make retirement and estate plans.
Take stock
Before determining where you want to be when you're ready to retire, assess where you and your business are financially today. Prepare a detailed financial analysis of your business with the help of a valuation professional. This expert will review historical data to determine its current value.
Click here to read the full article by the staff at SunbeltMergers.com.
Take stock
Before determining where you want to be when you're ready to retire, assess where you and your business are financially today. Prepare a detailed financial analysis of your business with the help of a valuation professional. This expert will review historical data to determine its current value.
Click here to read the full article by the staff at SunbeltMergers.com.
Negotiating the Price Gap Between Buyers and Sellers
The terms of the deal are extremely important to both parties involved in the transaction. Many times the buyers and sellers, and their advisors, are in agreement with all the terms of the transaction, except for the price. Although the variance on price may seem to be a "deal killer", the price gap can often be resolved so that both parties can move forward to complete the transaction.
Listed below are some suggestions on how to bridge the price gap.
Listed below are some suggestions on how to bridge the price gap.
- If the real estate was originally included in the purchase price, the seller may choose to rent the premises to the acquirer rather than sell it outright.
- The purchaser can acquire less than 100% of the company initially and have the option to buy the remaining interest in the future.
- A subsidiary can be created for the fastest growing portion of hte business being acquired.
- A royalty can be structured based on revenue, gross margins, EBIT, or EBITDA.
- Certain assets, such as automobiles or non-business-related real estate, can be carved out of the sale to reduce the actual purchase price.
Creating Value in Privately Held Companies
Creating value in the privately held company makes sense whether the owner is considering selling the business, plans on continuing to operate the business, or hopes to have the company remain in the family. Building value should focus on six components:
- the industry
- the management
- products or services
- customers
- competitors
- comparative benchmarks
Tuesday, August 30, 2011
Check out our own Larry Metzing in the Biz Voice by the Indiana Chamber
Check out the September / October 2011 issue of BizVoice magazine, put out by the Indiana Chamber of Commerce. Our own Larry Metzing, Senior Partner at Sunbelt Indiana Business Resource is highlighted as an Indiana "dealmaker", along with several other dealmaking Indiana professionals, in The Deal Behind the Deals, Pros offer Stories, Facts and Analysis.
Larry talks about fascinating deals, estimated market valuation, and the importance of taking the busines to market, as opposed to selling to the first buyer that comes along.
Click here to read the article.
Larry talks about fascinating deals, estimated market valuation, and the importance of taking the busines to market, as opposed to selling to the first buyer that comes along.
Click here to read the article.
Thursday, August 25, 2011
Article 9: Take a Look at Your Lease
This article is helpful for any of you who are thinking or either starting your own business or purchasing an existing one, or if you currently own a business that operates out of leased premises. Very helpful.
If your business is not location-sensitive, that is, if your business location is immaterial to its success, then the following may not be important. However, lease information is usually helpful no matter what the situation. The business owner whose business is very dependent on its current location should certaily read on.
If your business is location-sensitive, which is almost always true for a restaurant, a retail operation, or, in fact, any business that depends on customers finding you (or coming upon you, as is often the case with a well-located gift shop) - the lease is critical. It may be too late if you already have executed it, but the following might be helpful for your next lease negotiation.
Click here to read the full article.
If your business is not location-sensitive, that is, if your business location is immaterial to its success, then the following may not be important. However, lease information is usually helpful no matter what the situation. The business owner whose business is very dependent on its current location should certaily read on.
If your business is location-sensitive, which is almost always true for a restaurant, a retail operation, or, in fact, any business that depends on customers finding you (or coming upon you, as is often the case with a well-located gift shop) - the lease is critical. It may be too late if you already have executed it, but the following might be helpful for your next lease negotiation.
Click here to read the full article.
Tuesday, June 14, 2011
How an Equipment Lease Can Affect the Sale of Your Business
Written by: Ralana D. Shelley, CBI
Business Broker & Dir. of Marketing, SIBR
June 10, 2011
As any business broker will tell you, equipment issues that arise at closing can be sticky. It is best to be prepared ahead of time, and know how to handle your particular issues. Of course, equipment varies from business to business. A bar / restaurant may lease coolers, ice makers, etc. and be concered with obsolete equipment due to age and maintenance needs. Whereas, a printer may lease copiers and be more concerned with obsolescence due to technology. But, overall, the following are scenarios that can apply in most situations.
- Old or obsolete equipment under lease will most likely not be assumed by purchaser.
- If a lease is assumed, remember that if not handled correctly, it may decrease the overall purchase price you get at closing.
- Capital leases have a negative impact on the cash flow - and therefore a negative impact on the purchase price at closing.
As is the case with most things, an ounce of prevention equals a pound of cure. If you prepare ahead of time, you may be able to avoid equipment issues at closing.
Wednesday, April 6, 2011
Article 7: Buying vs. Leasing Equipment
"This article from Forbes.com has great information pro and con if you are trying to decided whether to buy or lease equipment for your business... check it out!" - Ralana D. Shelley, CBI, Sunbelt Indiana
Forbes.com
Nolo 01.24.07
Leasing equipment can be a better option for business owners who have limited capital or who need equipment that must be upraded every few years, while purchasing equipment can be a better option for established businesses or for equipment that has a long, usable life. Each business owner's situation is unique, however, and the decision to buy or lease business equipment must be made on a case-by-case basis.
To have a look at both options... click here and read the full article at Forbes.com.
And check out our next installment on Friday... Article 8: How equipment leases can affect the sale of your business.
Forbes.com
Nolo 01.24.07
Leasing equipment can be a better option for business owners who have limited capital or who need equipment that must be upraded every few years, while purchasing equipment can be a better option for established businesses or for equipment that has a long, usable life. Each business owner's situation is unique, however, and the decision to buy or lease business equipment must be made on a case-by-case basis.
To have a look at both options... click here and read the full article at Forbes.com.
And check out our next installment on Friday... Article 8: How equipment leases can affect the sale of your business.
Friday, April 1, 2011
Article 6: Equipment - The Very Expensive Desk Lamp
Courtesy of Business Brokerage Press
"Moral of the story: Prepare your business before a buyer sees it"
This is a story based on a true incident - only some of the details have been changed. The buyer and seller were ready to close on a business when the buyer asked to look at the list of fixtures and equipment that were to be included in the sale. After a few minutes reviewing the list, the buyer said that the desk lamp on the owner's desk was not listed. The seller explained that the lamp was a gift from his parents many years ago and therefore it was not included. The buyer got very upset, stating that the lamp was just perfect for the desk and he wanted it. The seller tried to explain that the lamp had lots of sentimental value, but that he would replace it with another desk lamp. This did not satisfy the buyer, and in order to stop the sale from falling apart, the seller agreed to subtract $1,000 from the purchase price to keep the lamp. That made the desk lamp a very expensive one.
To find out how this could have been avoided, and how you can avoid this scenario, read the full article... click here.
"Moral of the story: Prepare your business before a buyer sees it"
This is a story based on a true incident - only some of the details have been changed. The buyer and seller were ready to close on a business when the buyer asked to look at the list of fixtures and equipment that were to be included in the sale. After a few minutes reviewing the list, the buyer said that the desk lamp on the owner's desk was not listed. The seller explained that the lamp was a gift from his parents many years ago and therefore it was not included. The buyer got very upset, stating that the lamp was just perfect for the desk and he wanted it. The seller tried to explain that the lamp had lots of sentimental value, but that he would replace it with another desk lamp. This did not satisfy the buyer, and in order to stop the sale from falling apart, the seller agreed to subtract $1,000 from the purchase price to keep the lamp. That made the desk lamp a very expensive one.
To find out how this could have been avoided, and how you can avoid this scenario, read the full article... click here.
Friday, August 13, 2010
Check out our newest Seller Newsletter... Seller's Eye on the Market...
Great articles about what Buyers expect. If you are thinking of selling your business in the near future, this is a must read...
click on image to view newsletter...
click on image to view newsletter...
Wednesday, February 3, 2010
Congratulations to Tim Lyons
Congratulations to Sunbelt's Tim Lyons, M&A Intermediary, who had the highest score of 2009 in the CM&AA certification sessions.
From the AM&AA Website:
The Alliance of Merger & Acquisition Advisor's (AM&AA's)Certified Merger & Acquisition Advisor (CM&AA®) certification is the premiere advanced professional credential available to today's business advisory professionals, including CPAs, CFAs, attorneys, and many others. Certified Merger & Acquisition Advisor (CM&AA®) certification is the premiere advanced professional credential available to today's business advisory professionals, including CPAs, CFAs, attorneys, and many others. CM&AA® designation attests to your mastery of the M&A body of knowledge and your commitment to staying abreast of new developments in the field. It also recognizes your professional achievement and competence, serves as a tool to both attract and serve new clients, provides identification with other professionals in the field and potentially stimulates career advancement.
Sunbelt Indiana Business Resource is proud of Tim's accomplishment. You can click HERE to view Mr. Lyon's bio.
From the AM&AA Website:
The Alliance of Merger & Acquisition Advisor's (AM&AA's)Certified Merger & Acquisition Advisor (CM&AA®) certification is the premiere advanced professional credential available to today's business advisory professionals, including CPAs, CFAs, attorneys, and many others. Certified Merger & Acquisition Advisor (CM&AA®) certification is the premiere advanced professional credential available to today's business advisory professionals, including CPAs, CFAs, attorneys, and many others. CM&AA® designation attests to your mastery of the M&A body of knowledge and your commitment to staying abreast of new developments in the field. It also recognizes your professional achievement and competence, serves as a tool to both attract and serve new clients, provides identification with other professionals in the field and potentially stimulates career advancement.
Sunbelt Indiana Business Resource is proud of Tim's accomplishment. You can click HERE to view Mr. Lyon's bio.
Monday, January 4, 2010
Tim Koger Joins Sunbelt Indiana Business Resource
Indianapolis, IN, January 4, 2010 – Sunbelt Indiana Business Resource, the place to go to buy or sell a business®, is pleased to welcome Tim Koger. Koger is the latest addition to Sunbelt’s professional business broker staff, serving the business communities of central Indiana.
“We are excited to have Tim join our team of dealmakers,” said Ed Mysogland, Managing Partner of Sunbelt Indiana Business Resource. “Tim brings rich experience in helping the buyers and sellers of main street and middle market companies.”
Mr. Koger has over 20 years of experience in the lending and financial services industry and is a passionate customer service advocate. Mr. Koger has an extensive history of value creation responsibility and a skill set that would compliment any business transaction.
Additional information is available from Libby Springer by telephoning 317-218-8629. Mrs. Springer 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.
“We are excited to have Tim join our team of dealmakers,” said Ed Mysogland, Managing Partner of Sunbelt Indiana Business Resource. “Tim brings rich experience in helping the buyers and sellers of main street and middle market companies.”
Mr. Koger has over 20 years of experience in the lending and financial services industry and is a passionate customer service advocate. Mr. Koger has an extensive history of value creation responsibility and a skill set that would compliment any business transaction.
Additional information is available from Libby Springer by telephoning 317-218-8629. Mrs. Springer 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, November 30, 2009
SIBR is a Gold Sponsor
Sunbelt Indiana Business Resource was a Gold Sponsor at the 2009 "Small Firm: Big Business" conference for the Indiana CPA Society.
The event was held on November 19 from 8:30-5:00 in Muncie. It focused on how to better yourself as a small firm practitioner and the many "hats" that are worn to accomodate clients.
Larry Metzing (Senior Partner at SIBR) and Steve Pierce (Senior Broker at SIBR) were both in attendance.
If you would like more information on the event you may contact Larry or Steve at 317-573-2100 or click HERE to view information on the event online.
The event was held on November 19 from 8:30-5:00 in Muncie. It focused on how to better yourself as a small firm practitioner and the many "hats" that are worn to accomodate clients.
Larry Metzing (Senior Partner at SIBR) and Steve Pierce (Senior Broker at SIBR) were both in attendance.
If you would like more information on the event you may contact Larry or Steve at 317-573-2100 or click HERE to view information on the event online.
Monday, September 21, 2009
Dick Parks Joins Sunbelt Indiana Business Resource
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.
“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.
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.
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