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Acquire a Business Insights
Why Start-Up when you can Acquire a Business?
May 8, 2017 / in Acquire a Business / by Adam Wiskind
The successful start-up entrepreneur has been glamorized in the media through reality shows like Shark Tank and wide spread accounts of people that have become fabulously wealthy growing a business that started with a kernel of an idea. However it’s no secret that the rate of start-up failure is notoriously high, according to the bureau of labor statistics about 50% fail within the first five years. With odds like that it is no surprise that …
The Best Financial Decision I Ever Made
November 3, 2016 / in Acquire a Business / by Exit Strategies
In 2007 I found myself at a crossroads. After almost twenty years on a steady career path, I felt it was time for a change. The problem was that I didn’t know what I wanted to do next. I considered going into consulting, did the mandatory networking with old contacts, and even gave serious thought about doing a start-up. But I didn’t have that one great “do what you love” or “change the world” idea. …
Recent Trends in the M&A Market
October 5, 2016 / in Acquire a Business, News, Sell a Business / by Jim Leonhard
Pepperdine University, of Malibu, California, in conjunction with the International Business Brokers Association and M&A Source, publishes a quarterly Market Pulse Survey of business brokers that provides useful information concerning the market for Main Street ($0-$2M sales price) and lower middle market ($2-$50M sales price) businesses. Highlights from their most recent report for Q1 2016, include: 50% of all business sell Retirement is still the prime motivating factor for sellers followed by burnout. The strongest growth …
Benefits of Buying an Established Small Business
June 30, 2016 / in Acquire a Business / by Al Statz
So you want to be your own boss ― no superiors, no shareholders, and no board of directors. Consider the options ― you can work as an independent contractor, start your own company, or buy an existing business. Each option has benefits. If you analyze the risks-versus-rewards carefully, you’ll learn what many seasoned entrepreneurs have discovered … the scale tips in favor of purchasing an existing business. Admittedly, as an independent contractor (including sole practitioner professional …
The Federal Reserve and Interest Rates
June 6, 2016 / in Acquire a Business, Sell a Business / by Louis Cionci
The Federal Reserve controls the three tools of monetary policy — open market operations, the discount rate, and reserve requirements. Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate. Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, …
What are the benefits of a Confidential Information Memorandum?
May 6, 2016 / in Acquire a Business, Sell a Business / by Al Statz
One of the critical documents used in the business sale process is the Confidential Information Memorandum or “CIM.” Other names for this document are pitchbook, deal book, offering memorandum and confidential business review. A CIM tells the target company’s story and lays out important facts and figures for prospective buyers. This article answers common questions about CIM’s and explains how they improve sale process outcomes. Who receives the CIM and when? Buyers receive a CIM …
The Significance of Disclosure in a Business Transaction
October 9, 2015 / in Acquire a Business, Sell a Business / by Don Ross
Full disclosure by buyer and seller is a vital component in any successful business sale/purchase transaction. In a small business transaction, buyer and seller disclosure statements are customarily exchanged and reviewed before or during the due diligence process. Hopefully there are no significant surprises at that point and the transaction proceeds smoothly. When the buyer is an individual, the buyer’s disclosure statement generally focuses on the buyer’s personal, professional, and financial background and reorganization plans. …
SBA Loans: Capital for Small Business Acquisitions
September 23, 2015 / in Acquire a Business, Sell a Business / by Bob Altieri
So you’re thinking of selling your business and prefer to be cashed out rather than be paid in installments over time. Uncle Sam wants to see your business continue as a job creator, and hence, works with lenders to make attractive loan terms available to business buyers, on loans up to $5 million. US Small Business Administration (SBA) loans come in two types: business loans – type 7(a), and real estate loans – type 504. According to Bob Porter of …
Marketing a Business: The Need for Confidentiality
August 20, 2015 / in Acquire a Business, Sell a Business / by Don Ross
Maintaining confidentiality during the M&A sale process is a critical factor in successful business transactions. At the onset, during the marketing phase of a business sale, you are walking a tightrope between those you want to inform and those you don’t. Confidential information is shared only with qualified buyers who have evidenced professional and financial capacity. Information is withheld from those, who by virtue of their relationship with the seller’s business, could prove detrimental …
Baseball and Business Acqusition Financing: Five Tools Scoring Matrix
January 21, 2015 / in Acquire a Business / by Don Ross
The “Hot Stove League” is an expression that describes the six month hiatus from baseball, beginning the day after the final World Series game and extending through the cold winter months until Spring Training opens in March. There is plenty of time and opportunity for baseball fans to roll up their general manager sleeves and discuss the relative merits of potential roster moves on and off their fantasy teams. And that is where the five …