Thursday, December 30, 2010

Buying a business in a buyer’s market

The mergers and acquisitions sector is largely a buyer's market right http://www.bizilla.com/blog/2010/12/buying-a-business-in-a-buyers-market/now – a trend that has allowed for acquiring enterprises to essentially take their pick from a host of expansion opportunities, new customer bases and access to new products and services that go along with buying a business.

But as the economy slowly begins to improve and small businesses begin to see greater revenues, the market is expected to balance out. Until then, acquirers should take advantage of current conditions.

One of the first tasks a company needs to tackle after deciding to buy an enterprise is to assemble an acquisition team, consisting of lawyers, business brokers, accountants and general advisers.

"The team should decide if an investment banker will find and evaluate targets or if deal flow will be generated internally through screening, networking and industry contacts," writes Carolyn M. Brown for Inc. magazine. "An investment banker will have access to valuable resources and provide invaluable counsel on valuation and negotiation."

As for prospects that are not for sale, the team may have an advantage in the lack of competition for the company in question. While it may be more difficult to achieve these transactions, the sale could certainly benefit from the personal contact that would be involved.

http://www.bizilla.com/blog/2010/12/buying-a-business-in-a-buyers-market/

Kay Grubich | Find a Commercial Real Estate Agent | Bizilla

Kay Grubich | Find a Commercial Real Estate Agent | Bizilla

Tuesday, December 28, 2010

Selling a business with employees in mind

Hector Vazquez-Bizilla.com
Building a business from the ground up is a rewarding experience, especially when it comes time to sell the company. But whether one plans to sell the company to a larger firm or exit by means of an initial public offering, there are certain considerations business owners should make before moving forward.

First, the employees – those workers who toiled away, ideally without complaint, building the company in the fashion the owner saw fit. While it is ultimately the decision of the managers, and likely the acquiring body, as to what to do with the staff, it is important to keep their efforts in mind.

"Until you sign on the dotted line, remember, it's still your company and they're still your employees," writes Inc. magazine. "And you might end up keeping the whole shebang should negotiations not work out in the end, so you need to consider your workers' point of view."

While selling a business may evoke fear and uncertainty in some workers, it can also be viewed as a new endeavor. Perhaps they will be offered a position in the new company, or maybe they will be given a substantial bonus or share of the buyout earnings. These decisions are for the owners to make.

 http://www.bizilla.com/blog/2010/12/selling-a-business-with-employees-in-mind/

Selling a business with employees in mind

Hector Vazquez-Bizilla.com
Building a business from the ground up is a rewarding experience, especially when it comes time to sell the company. But whether one plans to sell the company to a larger firm or exit by means of an initial public offering, there are certain considerations business owners should make before moving forward.

First, the employees – those workers who toiled away, ideally without complaint, building the company in the fashion the owner saw fit. While it is ultimately the decision of the managers, and likely the acquiring body, as to what to do with the staff, it is important to keep their efforts in mind.

"Until you sign on the dotted line, remember, it's still your company and they're still your employees," writes Inc. magazine. "And you might end up keeping the whole shebang should negotiations not work out in the end, so you need to consider your workers' point of view."

While selling a business may evoke fear and uncertainty in some workers, it can also be viewed as a new endeavor. Perhaps they will be offered a position in the new company, or maybe they will be given a substantial bonus or share of the buyout earnings. These decisions are for the owners to make.

http://www.bizilla.com/blog/2010/12/selling-a-business-with-employees-in-mind/

Selling a business with employees in mind | Recent News/Blog

Selling a business with employees in mind | Recent News/Blog

Selling a business is about timing | Recent News/Blog

Selling a business is about timing | Recent News/Blog

Thursday, December 16, 2010

Considering a business broker and other acquisition tips for small businesses

December 15th, 2010 When an individual or various business entity is considering buying another company, it is important to remain level-headed, fair and respectful. That being said, everyone involved is still trying to get the best deal possible from the transaction, and good deals do not always line up when competing interests are at stake.
In order to maintain civility and a level of interest across all parties, it may be helpful to hire a business broker to manage the negotiations. Although a broker is not a necessary investment, some sort of acquisition “team” is advisable so that the primary proprietor can receive input from various perspectives.
“Most brokers are hired by sellers to find buyers and help negotiate deals,” writes Entrepreneur magazine. “If you hire a broker, he or she will charge you a commission – typically 5 to 10 percent of the purchase price. The assistance brokers can offer, especially for first-time buyers, is often worth the cost.”
“However, if you are really trying to save money, consider hiring a broker only when you are near the final negotiating phase,” the magazine continues. “Brokers can offer assistance in several ways.”
Whatever the chosen strategy for acquiring a business, be sure to consider the interests of the buyer, the seller and even the broker. Sometimes, simply placing oneself in an other’s shoes can help participants see a potential deal for what it really is.http://www.bizilla.com/blog/

Considering a business broker and other acquisition tips for small businesses | Recent News/Blog

Considering a business broker and other acquisition tips for small businesses | Recent News/Blog

Tuesday, December 14, 2010

Considerations to keep in mind when buying a franchise

According to a recent report by the Census Bureau, one out of every 10 businesses in the U.S. is a franchise. In 2007, the sector accounted for $7.7 trillion in total sales, while also paying $153.7 billion in salaries.It is not difficult to argue that franchises comprise a huge segment of the retail economy. But to many investors, entrepreneurs and potential franchisees, the prospect of buying a franchise can seem overwhelming.
Luckily, because they rely on prospective investors, franchises do not hesitate to provide interested operators with relevant location information, sales data and other scouting resources.

However, says Wayne Humphrey, vice president of franchising for Noodles & Company, "At the end of the day, the franchisee is responsible for selecting his or her own site," he told Inc. magazine. "And we have a very stringent approval process. They have to make a presentation to us with data on not just the demographics, but also the real estate picture - construction costs and co-tenants - and really sell it to us."
Franchisees also need to find the right staff to grow their business. Ultimately, a franchise endeavor is a risk and, if it is not properly managed, it can hurt a business owner's chances of ever finding a similar opportunity again.

http://www.bizilla.com/blog/2010/12/considerations-to-keep-in-mind-when-buying-a-franchise/