What Are Your Company’s Weaknesses?

Every company has some kind of weakness; the trick is to correct them. A common test that shows a good company CEO or president is what perspires in the company after he or she leaves. Few companies may look the same –on paper-, but another company may be more valuable considering the weaknesses of the other companies. Most problems and weaknesses can be mitigated, but some cannot be resolved or fixed. Finding the right buyer and improving the value of your business can become easier after lessening or fixing the company’s weaknesses. Below are a few common weaknesses that cause some buyers to look elsewhere to buy a business. “The One Man Band” Majority of small companies was founded by the current president who makes all major decisions. The president probably didn’t develop a succession plan and there is no one that can take that position after the president gets hit by a proverbial truck. Typically a one man band; and this results in the company becoming unattractive to … [Read more...]

Points to Ponder for Sellers

During the interview for business brokers Dallas who will represent selling your business, it is crucial that you discuss your selection process for determining one. A business broker will not be able to respond to a prospective seller’s concerns without this discussion.  - Who best understands my business? When working with business brokers Dallas, it is extremely helpful to reveal any possible buyer, a company or an individual, that has displayed interest in buying the business. Nevertheless how notably in the past the interest was expressed, any and all possible buyers should be contacted now that you are selling the business. Individuals who have already inquired about your business are certainly top prospects. - Are there any potential buyers? It is essential that communication between the seller, or his/her designee, and the business broker involved in selling the business, be managed promptly. Both parties should take calls. If either party is occupied or out of the … [Read more...]

Sell Your Business and Start Your Retirement

When the time arrives to sell your business, its crucial providing why you have decided to sell your business to prospective Buyers so they can understand which a business broker could help delegate. The business can become more attractive to prospective Buyers when you have a valid reason during the time you’re selling the business with certified business intermediary. Ultimately, it’s only natural that you’ll retire at some given point even though the business might be thriving. As a matter of fact, buying a successful business from an owner that is retiring is just the kind of scenario that most Buyers like. Of course, owning a business and retiring is completely different than retiring from a job. Most likely you selling your business have many friends ranging from vendors and employees to customers, clients and other business owners. Your departure from the business should not disrupt the operation of the business and it’s vital that all prospective Buyers understand that … [Read more...]

How to Ensure Confidentiality During your Sale

During the process of selling a business, including internet companies for sale, confidentiality and professionalism is crucial. A business broker that understands the pivotal role of confidentiality plays is a must. Sadly, innumerable amount of sellers has dealt with a situation where confidentiality has been breached causing the deal to fall apart. Various negative reactions can come from both parties when confidentiality is maintained improperly. Anyone from creditors to supplies and vendors may react in a way that might harm the business, for example, a vendor may change their terms and in turn could impact your cash flow negatively. Breaching the confidentiality could lead to negative reactions from both customers and employees of the business. The main reason is that certain employees may begin to be concerned about their job security and the state of management when the current owner selling the business.  This can easily prompt the employees to locate a new job and leave … [Read more...]

The Importance of Having a Dominant Position in the Market

Keeping in mind the end goal to get as much as possible for selling your business with commercial business brokers, it is important to get ready to sell your business well ahead of time. So, a huge measure of methodology and readiness goes into a completing a deal. The amount you ultimately get for your business is specifically attached to how well you plan to sell the business. At the highest priority on the rundown of ensuring that your business is alluring to potential buyers is to make certain your business is well positioned in the market as could be allowed. Obviously, this is regularly less demanding expressed than done. Here are a portion of the most ideal approaches to ensure your business is ideally situated. Tip One – Start Positioning Your Business Well in Advance Selling your business isn't something you ought to simply do one day. You ought to begin situating your business no less than one year before the end. Regularly, business brokers say entrepreneurs … [Read more...]

Selling: What Does An Intermediary Expect From You

In the event that you are truly thinking about selling your business, you have no uncertainty thought about utilizing the commercial business broker. You most likely have pondered what you could anticipate from him or her. It works both ways. To carry out their activity, which is selling your business; expanding the offering value, terms and net proceeds; in addition to dealing with the subtle elements viably; there are a few things professional business brokers will anticipate from you. By understanding these desires, you will extraordinarily enhance the odds of an effective deal. Here are a couple examples: Next to proceeding to maintain the business, working with your professional business broker in selling the business is a nearby second. It takes this sort of banding together to take care of business. You need to restore the greater part of his or her phone calls expeditiously and be accessible to deal with some other solicitations. You, other key officials, and essential … [Read more...]

Family-Owned Businesses Do Have Choices

Family-owned businesses do have some options when it comes time to sell. Selling the entire business may not be the best choice when there are no other family members involved. Here are some choices to be considered: Internal Transactions Hire a CEO – This approach is a management exit strategy in which the owner retires, lives off the company's dividends and possibly sells the company many years later. Transition ownership within the family – Keeping the business in the family is a noble endeavor, but the parent seldom liquefies his investment in the short-term, and the son or daughter may run the company into the ground. Recapitalization – By recapitalizing the company by increasing the debt to as much as 70 percent of the capitalization, the owner(s) is/are able to liquefy most of their investment now with the intent to pay down the debt and sell the company later on. Employee Stock Ownership Plan (ESOP) – Many types of companies such as construction, engineering, … [Read more...]

Who Is Today’s Buyer?

It has always been the American Dream to be independent and in control of one's own destiny. Owning your own business is the best way to meet that goal. Many people dream about owning their own business, but when it gets right down to it, they just can't make that leap of faith that is necessary to actually own one's own business. Business brokers know from their experience that out of fifteen or so people who inquire about buying a business, only one will become an owner of a business. Today's buyer is most likely from the corporate world and well-educated, but not experienced in the business-buying process. These buyers are very number-conscious and detail-oriented. They require supporting documents for almost everything and will either use outside advisors or will do the verification themselves, but verify they will. A person who is realistic and understands that he or she can't buy a business with a profit of millions for $10 down is probably serious. They must be able to make … [Read more...]

Due Diligence — Do It Now!

Due diligence is generally considered an activity that takes place as part of the selling process. It might be wise to take a look at the business from a buyer's perspective in performing due diligence as part of an annual review of the business. Performing due diligence does two things: (1) It provides a valuable assessment of the business by company management, and (2) It offers the company an accurate profile of itself, just in case the decision is made to sell, or an acquirer suddenly appears at the door. This process, when performed by a serious acquirer, is generally broken down into five basic areas: • Marketing due diligence • Financial due diligence • Legal due diligence • Environmental due diligence • Management/Employee due diligence Marketing Issues It has been said that many company officers/CEOs have never taken a look at the broad picture of their industry; in other words, they know their customers, but not their industry. For example, here are just a few … [Read more...]

Keys to a Successful Closing

The closing is the formal transfer of a business. It usually also represents the successful culmination of many months of hard work, extensive negotiations, lots of give and take, and ultimately a satisfactory meeting of the minds. The document governing the closing is the Purchase and Sale Agreement. It generally covers the following: • A description of the transaction – Is it a stock or asset sale? • Terms of the agreement – This covers the price and terms and how it is to be paid. It should also include the status of any management that will remain with the business. • Representations and Warranties – These are usually negotiated after the Letter of Intent is agreed upon. Both buyer and seller want protection from any misrepresentations. The warranties provide assurances that everything is as represented. • Conditions and Covenants – These include non-competes and agreements to do or not to do certain things. There are four key steps that must be undertaken before the … [Read more...]