The Top Two Ways to Purchase a Business without Collateral

Banks love collateral and for a very simple reason. If you have collateral, then the bank has something it can take if you fail to repay your loan. At its heart, collateral is a remarkably simple concept. However, unfortunately, many people who want to start a business lack it. All of this leads us to the simple question, “Can I start a business without a collateral. 1. Try the SBA There are ways that you can start a business without collateral, but you will need some amount of money. The larger the business, obviously the more money you'll need. Those interested in the zero collateral route will want to take a look at the SBA's 7 (a) program. This program incentivizes banks to make loans to prospective buyers. Through this program, the SBA guarantees an impressive 75% of the loan amount. Of course, the buyer still has to put up 25% of the money in order to buy the business, but for those looking to own a business without having to put up collateral, the SBA's 7 (a) program is … [Read more...]

Fairness Opinions

Since one often hears the term “fair value” or “fair market value,” it would be easy to assume that “fairness opinion” means the same thing. A fairness opinion may be based to some degree on fair market value, but there the similarities end. Assume that you are president of a family business and the other members are not active in the business, but are stockholders; or you are president of a privately held company that has several investors/stockholders. The decision is made to sell the company; and you as president are charged with that responsibility. A buyer is found; the deal is set; it is ready to close — and, then, one of the minority stockholders comes out of the woodwork and claims the price is too low. Or, worse, the deal closes, then the minority stockholder decides to sue the president, which is you, claiming the selling price was too low. A fairness opinion may avoid this or protect you, the president, from any litigation. A fairness opinion is a letter, usually only … [Read more...]

Are You Asking a Reasonable Price for Your Privately Held Company?

Setting a cost on a privately-held organization is generally more intricate than putting a value, or a cost, on an openly held organization sold by a professional business broker. There are numerous purposes behind this reality, yet one of the best reasons is that privately-held organizations don't have reviewed money related proclamations.   Why are Audited Financial Statements Lacking in Privately-Held Companies? Setting up an audited financial statement is costly and, subsequently, numerous organizations that have not opened up to the world basically forego the cost. Then again, freely held organizations uncover substantially more data viewing their fundsand in addition a scope of different sorts of data. Contrasted with a privately-held organization, a freely held organization can regularly appear like an "open book." Buyers are left with the suggestion of digging out significantly more data from a privately-held organization so as to survey regardless of whether a … [Read more...]

Examining the Mind of the Serious Buyer – 5 Points to Consider

Is it accurate to say that you are searching for an approach to perfect your introduction? Understanding what the run of the mill genuine purchaser needs will enable you to prepare to sell a business. We should direct our concentration toward taking a gander at what these kinds of people and elements truly need. All things considered, your opportunity is valuable.   An Interest in the Industry To start with, forthcoming purchasers will need to have a superior comprehension of your industry. Any genuine purchaser will need to comprehend the business all in all and in addition your current existing clients, forthcoming clients and the qualities and shortcomings of your business. Key variables, for example, dangers from rivalry, will likewise be a central point for imminent purchasers which should be discussed with a professional business broker.   Looking for Knowledge about Discretionary Costs Furthermore, anticipate that purchasers will investigate … [Read more...]

Is Now the Right Time to Sell Your Company?

     In the same way as other things throughout everyday life, timing can be everything with regards to selling a business. Consistently more baby-boomers are currently reaching retirement age. Before long, the market will probably be overwhelmed with people wanting to sell a business. According to a 2016 survey of professional business brokers, 54% plan to exit in the following ten years. We might be very nearly an enormous influx of organizations hitting the market. Getting out before that wave could be to your greatest advantage. Presently might be an ideal opportunity to sell your business. Is it accurate to say that you are suffering from Burnout? On the off chance that you've been maintaining your business for a long time, it is very conceivable that you are experiencing burnout. This issue is astoundingly basic with entrepreneurs and it is additionally extremely unsafe. Proprietors experiencing burnout don't contribute as a lot of themselves and their imaginative … [Read more...]

If You’re Selling, Get Ready to Expect the Unexpected!

Numerous professional business brokers concur that the best time to get ready to sell your business is the point at which you begin your business. That may sound outrageous. In any case, few entrepreneurs achieve that level of readiness. A basic unavoidable truth in owning a business is that most deals are occasion driven. Factors, for example, issues with an organization, medical problems, burnout or even separation can drive an entrepreneur to offer through a professional business broker. Once you've settled on the choice to sell the business, it is basic that you understand one key truth. Unforeseen occasions and factors will dependably ascend to the surface. In this article, we'll investigate four key inquiries that you'll have to address before selling your business.   What is the Value of Your Time? Meeting with prospective purchasers can be a genuine time wipe. One of the key advantages of working with a professional business broker is that an agent can take a … [Read more...]

How Your Employees Can Boost Profits and Values

The basic certainty is that without employees, you don't have a business. Given the enormous significance of your employees, it is imperative to advance back and think about the esteem related with keeping those workers happy. There is an immediate connection between happy workers and cheerful clients. An upbeat employee finds a way to guarantee that your clients are fulfilled. Otherwise, disclosing the business being sold may bring the opposite affect that can be minimized by working with a professional business broker. This approach thusly prompts a more elevated amount of client maintenance and aides in pulling in new clients. On the other side, troubled workers can be very risky to your organization's primary concern when selling the business. The enlisting procedure is a key procedure for the strength of your business and ought to never be disregarded or regarded as an optional procedure inside your business. Developing happy employees starts now. Enlisting can and will … [Read more...]

Around the Web: A Month in Summary

A recent article posted on the Axial Forum entitled “What Do Buyers Look for in the Lower Middle Market?” explains how to make your business valuable to potential buyers and how to find the right buyers for your business. The buyers in the lower middle market are usually strategic buyers, financial buyers, private equity firms, and search fund advisors. Buyers in this market are generally looking for the following characteristics: A strong management team who has incentive and is prevented from competing against the company if their employment is terminated Stability and predictability of revenue and cash flow Low customer concentration Other value drivers such as state-of-the-art operating systems High level of preparedness The article warns about the biggest obstacles for owners. Business owners should consult with experienced deal attorneys and investment bankers before speaking to any buyers. They should also consult with advisors before the company goes on the market to make … [Read more...]

Don’t Let the Dust Settle on Your Lease: 8 Factors to Consider

Proprietors regularly disregard understanding their leases and this can be hazardous when selling a business. On the off chance that your business is area delicate, at that point the status of your rent could be of foremost significance. Eateries and retail organizations, for instance, are normally area ward and need to give careful consideration to their leases. Be that as it may, with that expressed, each business ought to comprehend in detail the terms of its leases that should be discussed with a professional business broker. There are numerous key variables including leases that ought not be disregarded or neglected. On the off chance that you hold fast to these rules, you'll be considerably more prone to control your results whether you work with a professional business broker or alone. At the highest priority on the rundown is the factor of length. For the most part, the more drawn out your rent the better it is for a professional business broker to work with. … [Read more...]

The Importance of the Term Sheet

The estimation of the term sheet shouldn't be disregarded. From purchasers and merchants buying a business to guides and go-betweens, the term sheet is frequently utilized before the production of a real buy or deal understanding which can be explained by a professional business broker. That expressed, it is imperative that the term sheet is really clarified in detail. How about we investigate its significance. What is a Term Sheet? Despite the fact that term sheets are very vital, they are once in a while specified in books about the M&A procedure. In the book, Streetwise Selling Your Business by Russ Robb, a term sheet is characterized as, "Expressing a value run with an essential structure of the arrangement and regardless of whether it incorporates land." Another method for taking a gander at a term sheet, as indicated by lawyer and creator Jean Sifleet, is that a term sheet serves to reply to four key inquiries: Who? What? Where? Furthermore, How Much? Making the … [Read more...]