Easy Money Fueled a "Subprime Meltdown": We have all watched the meltdown of the "subprime" loan industry with shock and awe. The industry had been offering loans with more flexible terms and criteria for borrowers who could not qualify for traditional loans. Subprime loan use and abuse explod
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09/08/2007
Value of Leases & Franchises: A Lease or Franchise contributes to the value of a small business. The Lease may provide a prime retail location that enhances sales and reduces the need for advertising, or require below-market rent that keeps overhead low. A Franchise may provide a well-known Br
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06/10/2007
Sale Contingencies: The Business Sale begins with the Seller's acceptance of the Buyer's offer. The resulting Asset Purchase Agreement is subject to certain "Conditions," also known as "Contingencies." These almost always include "Due Diligence," often include "Leasing" and/or "Financing," and
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06/03/2007
Sale Begins with an Offer: Most business sales begin with an offer from a Buyer to the Seller. In all but the largest and most complex deals, it is best to avoid a "Non-Binding Letter of Intent," and go straight to a Purchase Offer, accompanied by a Deposit Check. This saves time and demonstra
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05/28/2007
Stable Market: Every owner wants to sell when the time is right. In selling a small business, the right time depends more on the owner and the business than on external events. Unlike stocks, bonds and real estate-which rise and fall with interest rates and other factors-the market for small b
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05/21/2007
Showing Process: An effective marketing and advertising program should make the telephone ring. If the Seller has chosen to handle the inquiries himself, then maintaining confidentiality and smooth business operations will be a constant challenge. Hopefully, the Seller has hired a Business Adv
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05/08/2007
Marketing Brings the Buyers: Advertising and marketing are critical to selling a business for the best price and terms within a reasonable period of time. The business must be attractively packaged and exposed to a broad range of potential buyers, while keeping the sale confidential.Confidentia
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05/08/2007
Cash is King: Most business sellers want to receive at least some of the sale proceeds in cash. Cash demonstrates commitment from the Buyer and provides assurance to the Seller. The Seller or his business advisor should screen potential buyers, to ensure that they really have enough cash and c
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05/05/2007
Can I sell my business by myself? Can a surgeon operate on himself? Can a homeowner sell his own home? Can an attorney defend himself in court? I would answer all of these questions in the same way. It can be done, but that does not mean that it should be done. We hire professionals for very good
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04/14/2007
Buyers want Businesses that Make Money: The typical buyer of a small business is looking to "buy a job" that will support his family, pay off his debt, and provide a return on his investment. Most buyers are considered "Financial Buyers," because they are chiefly concerned with profitability.
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04/11/2007
