Buying or Selling a Business?

The type of leases you give as well as the clauses contained can make a significant impact on your cash flow.  Here are some common types of leases:Triple Net (NNN) Lease.  A triple net lease is one where the tenants pay for your operating expenses, such as your taxes and common area maintenance....

One of the biggest mistakes landlords make in leasing out their building is being too desperate in the attempt to lease out the building.  When the building sits vacant and there is a mortgage payment coming, it is tempting to lease out the space to whoever would come along.  However, time has pr...

Selling commercial property is more complex than selling residential property, and the buyers of commercial property have a different mentality than those of residential homes. Buyers of residential housing tend to be concerned with the emotions of living in the home, while buyers of commercial p...

Place a reasonable price on your business. Since an inflated figure either turns off or slows down potential buyers, rely on your business broker to help you arrive at the best "win-win" price.Carry on "business as usual." Don't become so obsessed with the transaction that your attention wavers f...

Over the years, we have found that firms achieve the most success when they follow these guidelines in making acquisitions:Complementary assets and resources. Buy firms with assets that meet current needs to build competitiveness.Friendly acquisitions. As opposed to a hostile takeover, friendly a...

There are 4 common reasons that result in acquisition failure. Here they are:Integration difficulties. The corporate cultures at the two firms might be too different. There can be problems with developing and integrating financial and control systems. The status of the newly acquired firm's execu...

If acquisition is the strategy of choice, the next question is what type of companies one should acquire. There are firms that acquire related businesses, and firms that acquire completely unrelated businesses simply for diversification purposes. How diversified should your firm be?There are 3 po...

When it comes to developing new products and capabilities, there are 8 possible strategies each with different costs and level of control. Acquisition is one of the 8 strategies, and it may or may not be the strategy of choice. Take a look at the following:Internal developmentHighest costMost con...

Before acquiring a company, you should consider whether it makes more sense to outsource instead. There are 2 considerations that help firms determine whether it should perform the activity in house, or outsource it. Strategic value of activity. How important is this activity to your firm? Relati...

Corporate mergers and acquisitions can increase the firm's competitive advantage, or end up as a fiasco. To acquire a company is an expensive proposition, and one must utilize this strategy for the right reasons. There are 5 common reasons a firm should consider acquisitions part of its strategy:...