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If you go to work on your goals, your goals will go to work on you.   If you go to work on your plan, your plan will go to work on you.  Whatever good things we build ... end up building us!

-- Jim Rohn

 


Buying a Business on 'Main Street'
3 Major topics to ponder when looking to buy a business

The following is basic information for anyone considering the purchase of a business. Buying a business is a complex process and so the more information and knowledge both sides have about buying and selling a business, the easier the process will become. Look to your broker for guidance and advice in this regard; it is your broker's greatest value to you as a buyer. Nevertheless,

here are some things to consider.

1. Seller's Records: Understand that in looking at small businesses, small business owners are not known for their record-keeping. You want to make sure you don't overlook a "gem" of a business because you don't or won't take the time it takes to find the information you need to make an informed decision. Ask your broker what to look for and where. Try to get an understanding of the real earning power of the business. Look for discretionary cash: often called BDC (buyer's discretionary cash). Once you have found a business that interests you ...

 
Using Multipliers in Value Placement
What substance might there be to multipliers to establish business value?

Since the greater balance of properties our network ‘sells' are businesses, it might make sense that we have frequent discussions about business value. Elsewhere in the Reading Room, we concluded that it reasonably comes down to a justified ‘rate of return`. Any seller of a business wants 'earnings' to be the basis for what

defines the highest and best value for a company.

That notwithstanding, many discussions held in our conference room or on the phone with clients center around ‘multipliers'. Let's talk about these multipliers and whence they came. First, what are they? Multipliers attempt to simplify and shortcut the process of establishing the value of a business. There is substance to the use of ...

 
What are Buy-Sell Agreements?
No Business should be without one!

In the day-to-day activity of making a business work, many owners overlook the importance of the buy-sell agreement. This document (sometimes referred to as a business continuity agreement, or 'business will') is like a personal will; in that no one thinks about it until it's too late. However, it may just be the most important written agreement or document you ever create for your business.

If your business has more than one owner, either partners or stockholders, what happens if one or more of them dies or "wants out?" The same thing holds true in family-owned and operated businesses. A buy-sell agreement can dictate the transfer of business ownership under certain circumstances as described within its specifically-written language.

The buy-sell agreement can help ...

 
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