This document provides an overview of buying an existing business. It discusses researching different types of businesses to purchase like franchises, existing businesses, and commercial real estate. The steps involved in purchasing a business are outlined, including qualifying yourself as a buyer, evaluating potential businesses, making an offer, conducting due diligence, and closing the deal. Key factors to consider include financing, ownership structure, earnings potential, and transitioning ownership. Hiring professional advisors is recommended to navigate the purchase process successfully.
This document provides an overview of important considerations for purchasing an existing business. It discusses evaluating different types of businesses, conducting due diligence, determining a fair purchase price, and completing the transaction. The key steps are researching business options, qualifying for financing, analyzing a potential target business thoroughly, making an offer, and closing the deal with proper legal documentation. Consulting experts can help navigate the process successfully.
Buy a business and forget the job but be careful and mindful. You can get a great deal out there but take a look at some of the key steps you will need to consider to make a successful business acquisition.
Exit Strategy and Succession Planning - From Plan to ExecutionCBIZ, Inc.
The document discusses exit strategies and succession planning for business owners. It covers evaluating personal goals, valuing the business, developing an exit strategy, integrating the business plan, protecting assets, building a team, and ongoing planning and execution. The presentation provides an overview of considerations for different types of individuals and businesses undergoing transition and offers strategies to effectively execute an exit plan.
This document discusses three popular options for owning your own business: starting your own business, buying an existing business, or buying a franchise. It provides detailed information on each option, including the steps, risks, rewards, financial considerations, and advice for exploring each path. Key factors like developing a business plan, securing funding, hiring professionals, and creating a marketing strategy are addressed.
This document provides information and advice for entrepreneurs seeking venture capital funding. It discusses identifying target investors, preparing an effective funding package, understanding what investors look for, negotiating deal terms, and closing an investment deal. Key steps outlined include preparing an executive summary and business plan, contacting investors, conducting due diligence, addressing common investor concerns, and structuring the investment to align incentives. Cautions are also given about common lies told by both entrepreneurs and venture capitalists throughout the funding process.
New Ventures BC Dialling for Dollars 20080528David Shore
The document provides information about Lions Capital Corp., a venture capital firm that manages $85 million investing in emerging life science and technology companies in British Columbia. It discusses Lions Capital's funds, portfolio companies, management team, and investment strategies. The document also covers key aspects of the startup financing process, including identifying investors, pitching to investors, conducting due diligence, negotiating terms, and closing investment deals.
I'm a stakeholder... get me out of here!
Venue: Stratton House Hotel, Cirencester
Date: 23rd November 2010
Presented by:
Stewart Barnes - Business LInk
Will Abbott - Randall & Payne
Peter Mardon - Witerbotham Smith Penley LLP
Chris Brill
Joseph Fabiilli | What Venture Capitalists ExpectJoseph Fabiilli
Joseph Fabiilli is explaining about the venture Capitalists Expect. Joseph Fabiilli is a funding consultant for future-thinking entrepreneurs and agencies. Joseph helps people secure funding for their environmental projects and programs. Joseph Fabiilli is a funding consultant for future-thinking entrepreneurs and agencies. Joseph helps people secure funding for their environmental projects and programs.
This document provides an overview of important considerations for purchasing an existing business. It discusses evaluating different types of businesses, conducting due diligence, determining a fair purchase price, and completing the transaction. The key steps are researching business options, qualifying for financing, analyzing a potential target business thoroughly, making an offer, and closing the deal with proper legal documentation. Consulting experts can help navigate the process successfully.
Buy a business and forget the job but be careful and mindful. You can get a great deal out there but take a look at some of the key steps you will need to consider to make a successful business acquisition.
Exit Strategy and Succession Planning - From Plan to ExecutionCBIZ, Inc.
The document discusses exit strategies and succession planning for business owners. It covers evaluating personal goals, valuing the business, developing an exit strategy, integrating the business plan, protecting assets, building a team, and ongoing planning and execution. The presentation provides an overview of considerations for different types of individuals and businesses undergoing transition and offers strategies to effectively execute an exit plan.
This document discusses three popular options for owning your own business: starting your own business, buying an existing business, or buying a franchise. It provides detailed information on each option, including the steps, risks, rewards, financial considerations, and advice for exploring each path. Key factors like developing a business plan, securing funding, hiring professionals, and creating a marketing strategy are addressed.
This document provides information and advice for entrepreneurs seeking venture capital funding. It discusses identifying target investors, preparing an effective funding package, understanding what investors look for, negotiating deal terms, and closing an investment deal. Key steps outlined include preparing an executive summary and business plan, contacting investors, conducting due diligence, addressing common investor concerns, and structuring the investment to align incentives. Cautions are also given about common lies told by both entrepreneurs and venture capitalists throughout the funding process.
New Ventures BC Dialling for Dollars 20080528David Shore
The document provides information about Lions Capital Corp., a venture capital firm that manages $85 million investing in emerging life science and technology companies in British Columbia. It discusses Lions Capital's funds, portfolio companies, management team, and investment strategies. The document also covers key aspects of the startup financing process, including identifying investors, pitching to investors, conducting due diligence, negotiating terms, and closing investment deals.
I'm a stakeholder... get me out of here!
Venue: Stratton House Hotel, Cirencester
Date: 23rd November 2010
Presented by:
Stewart Barnes - Business LInk
Will Abbott - Randall & Payne
Peter Mardon - Witerbotham Smith Penley LLP
Chris Brill
Joseph Fabiilli | What Venture Capitalists ExpectJoseph Fabiilli
Joseph Fabiilli is explaining about the venture Capitalists Expect. Joseph Fabiilli is a funding consultant for future-thinking entrepreneurs and agencies. Joseph helps people secure funding for their environmental projects and programs. Joseph Fabiilli is a funding consultant for future-thinking entrepreneurs and agencies. Joseph helps people secure funding for their environmental projects and programs.
The document discusses various topics related to selling a small business, including transaction types, potential buyers, valuation methods, preparing the business for sale, and the sales process. It notes that the current M&A environment is a seller's market with business values rising. Private equity groups and strategic corporate buyers are actively looking to acquire businesses. The document provides an overview of important considerations and steps for business owners throughout the process of evaluating a potential sale and successfully completing a transaction.
a presentation I made at Jacksonville State University's "The Alabama Conference for Inventors"... some content blatantly lifted from other great presentations
1) Obtaining an independent business valuation is one of the first recommendations of an exit planning advisor to avoid surprises and disputes over value when transferring ownership.
2) A valuation helps owners understand what the business is truly worth and determine how much will be needed to meet financial security goals rather than relying on guesses or comparisons.
3) Valuations also prevent disagreements with employees over incentive programs linked to business value growth or disputes with the IRS over minority discounts.
The document provides information about an entrepreneur and their experience including three meaningful startups and corporate finance roles. It then discusses the services provided by Stirling Mercantile including mid-market financings, early-stage VC financings, mergers and acquisitions, and valuations. Information is also provided on sources of financing for companies including equity, debt, and grants. Diagrams outline the financing map and what happens when equity investors are brought in.
This document discusses the differences between fundraising and bootstrapping for startups. Fundraising involves taking investment from outside parties like venture capitalists in exchange for equity. It allows for faster growth but loses some control. Bootstrapping involves self-funding the startup through revenue and has slower growth but maintains full control. The document provides guidelines for when each approach makes sense, such as raising funds if significant upfront investment is needed or the market is large enough for rapid disruption. Overall, neither is inherently better but entrepreneurs should focus on their goals and customers over fundraising.
1) The document provides advice on selling a business for maximum price, discussing reasons for selling, the best timing, valuation methods, finding buyers, and preparing the business and sale process.
2) Key points include that the best time to sell is when the business is performing well and prospects are bright, and that the only way to determine actual maximum value is by creating a competitive market through running a transaction process.
3) Valuation estimates can be made using earnings-based approaches like discounted cash flow analysis or capitalization of earnings ratios, and market-based approaches like comparable public company analysis, but the actual sale price depends on generating buyer interest and competition.
This document discusses exit strategy planning for business owners. It outlines that exit strategy planning coordinates business and estate planning based on an owner's objectives. It notes that over 4.5 million business owners are over 50 years old and planning to exit their businesses within 10 years. However, over 75% have done little planning for this significant financial event. The document discusses different exit alternatives and issues that may limit alternatives or lower business value. It positions exit strategy planning as helping owners achieve their goals through various services like education, advisory teams, and implementing an exit plan to maximize value.
The document discusses company valuation for startups raising funds. Some key points:
1) Determining valuation is difficult but important for fundraising. Investors want to "buy low, sell high" so valuation directly impacts their potential returns.
2) Common mistakes include not understanding terms like pre-money and post-money valuation and how ownership percentages are determined.
3) Valuation is subjective but tools like comparables, discounted cash flow analysis, and the venture capital method provide guidelines. Negotiation with investors also plays a role.
Plan your Exit at the Outset to SFU 2007David Shore
The document provides information about Stirling Mercantile, a corporate finance advisory firm. It discusses goals for building a business, exit strategies, and considerations for planning an exit from the outset. Key points include planning for an exit, understanding potential buyers and service providers, positioning value, structuring a deal, due diligence, and financial modeling best practices.
Succession Planning and Valuing/Buying/Selling/Merging rep firmsCharles Cohon
If you don’t have a plan to sell your company some day, you’re missing out on capturing the value you created as you grew your firm. Get the information you need to help you plan to sell your company from MANA CEO and President, Charles Cohon. One of the best ways to sell your company is to sell to your employees so we also cover key points on recruiting new salespeople to your rep company.
Considering selling your business. Presentation goes through all elements of The Exit Process, from pre-sale, to selecting an advisor, to preparing marketing materials, to the LOI, negotiating a deal and closing. For business owners and advisors such as accountants and attorneys.
Most of the time VCs have one or more discrete reasons for saying “no.” Although it would be ideal if they relayed them to founders clearly and openly, they sometimes feel pressure to take the less confrontational path and say vague things “this is too early for us” when the truth is more difficult to hear. VCs have a code around rejection language that often leaves founders scratching their heads to interpret, but candor is usually better for both parties long-term. Truthfully, the reason for the “no” often has little to do with the founder or the details of the business, but lots to do with that VC’s personal interests, portfolio, or history.
The document discusses exit strategies for business owners looking to sell their privately held companies. It explains that an exit strategy is a roadmap to maximize value and minimize taxes when selling a business. It also discusses why many business owners do not create exit strategies, as well as the key elements that should be included in an exit strategy plan such as timelines, potential buyers, valuations, management transitions and contingency plans.
The document discusses various aspects of entrepreneurship including what entrepreneurship is, characteristics of entrepreneurs, advantages and disadvantages of being an entrepreneur, different forms of business ownership like sole proprietorship, partnership and corporations. It also talks about acquiring existing companies through bankruptcy, business brokers or networking. Key steps in starting a new company or acquiring an existing one are identified. The document concludes with lessons learned from experience and the importance of entrepreneurship programs at universities.
The document provides an overview of Warren Buffett's career and investment approach. It discusses how he got his start in investing as a child, worked for Benjamin Graham, and eventually started his own partnership that became Berkshire Hathaway. It outlines his value investing strategy of focusing on companies with sustainable competitive advantages and purchasing them at a discount to their intrinsic value.
This document provides advice for business leaders and entrepreneurs on surviving an economic recession. It begins by noting that the current recession is more severe than past recessions and a long recovery is expected. It then discusses key challenges around access to credit and capital, sales and marketing strategies, and internal cash flow management. Specific recommendations include developing relationships with regional banks, retaining key employees where possible, negotiating with vendors, reviewing IT strategies such as cloud computing, and focusing on efficient operations and cash flow preservation.
This document provides guidance for business leaders and entrepreneurs on surviving the recession. It begins by recognizing that the current economic situation is more like a recession/depression and recovery will take a long time. It then provides advice in 3 key areas: [1] Sales & Marketing - focusing on preserving and growing customer base through differentiating from competitors and innovative marketing; [2] Internal Cash Flow - emphasizing expense reduction, negotiation, and operating frugally; [3] Internal Processes - reviewing processes to find efficiencies and using process improvement methodologies. For businesses in severe trouble, it recommends promptly seeking professional help and taking sensible risks to improve fortunes. The document concludes by emphasizing managing people resources effectively and involving employees.
This document provides an overview of Warren Buffett's biography, investment approach, and management style. It discusses that Buffett has been investing since childhood, learned from Benjamin Graham, and founded Berkshire Hathaway in 1965 which he has built into a massive holding company. His value investing approach focuses on buying shares of companies with a competitive advantage that are trading below their intrinsic value. Buffett prioritizes rational, candid management and resists pressure to conform to industry trends.
Warren Buffett is one of the most successful investors of all time. He began buying stocks at age 11 and learned from value investing pioneer Benjamin Graham. Buffett builds economic "moats" around companies with sustainable competitive advantages. His investment methodology focuses on analyzing a company's long-term earnings potential and only investing when he believes a stock is undervalued by at least 25%. Buffett takes a long-term, passive approach to generating market-beating returns and is also known for his candid management style and philanthropic efforts.
The document provides guidance for first-time business buyers on how to become informed buyers and improve their chances of successfully acquiring a business. It recommends buyers set clear acquisition objectives, understand the marketplace and deal processes, develop quality deal flow sources, consider working with professional intermediaries, and be patient as it is a lengthy process to find and close a deal.
This presentation is going to take a look at the financing of a business purchase.
If you are selling a business it will give you a guide as to what and how buyers can fund the acquisition.
The document discusses various topics related to selling a small business, including transaction types, potential buyers, valuation methods, preparing the business for sale, and the sales process. It notes that the current M&A environment is a seller's market with business values rising. Private equity groups and strategic corporate buyers are actively looking to acquire businesses. The document provides an overview of important considerations and steps for business owners throughout the process of evaluating a potential sale and successfully completing a transaction.
a presentation I made at Jacksonville State University's "The Alabama Conference for Inventors"... some content blatantly lifted from other great presentations
1) Obtaining an independent business valuation is one of the first recommendations of an exit planning advisor to avoid surprises and disputes over value when transferring ownership.
2) A valuation helps owners understand what the business is truly worth and determine how much will be needed to meet financial security goals rather than relying on guesses or comparisons.
3) Valuations also prevent disagreements with employees over incentive programs linked to business value growth or disputes with the IRS over minority discounts.
The document provides information about an entrepreneur and their experience including three meaningful startups and corporate finance roles. It then discusses the services provided by Stirling Mercantile including mid-market financings, early-stage VC financings, mergers and acquisitions, and valuations. Information is also provided on sources of financing for companies including equity, debt, and grants. Diagrams outline the financing map and what happens when equity investors are brought in.
This document discusses the differences between fundraising and bootstrapping for startups. Fundraising involves taking investment from outside parties like venture capitalists in exchange for equity. It allows for faster growth but loses some control. Bootstrapping involves self-funding the startup through revenue and has slower growth but maintains full control. The document provides guidelines for when each approach makes sense, such as raising funds if significant upfront investment is needed or the market is large enough for rapid disruption. Overall, neither is inherently better but entrepreneurs should focus on their goals and customers over fundraising.
1) The document provides advice on selling a business for maximum price, discussing reasons for selling, the best timing, valuation methods, finding buyers, and preparing the business and sale process.
2) Key points include that the best time to sell is when the business is performing well and prospects are bright, and that the only way to determine actual maximum value is by creating a competitive market through running a transaction process.
3) Valuation estimates can be made using earnings-based approaches like discounted cash flow analysis or capitalization of earnings ratios, and market-based approaches like comparable public company analysis, but the actual sale price depends on generating buyer interest and competition.
This document discusses exit strategy planning for business owners. It outlines that exit strategy planning coordinates business and estate planning based on an owner's objectives. It notes that over 4.5 million business owners are over 50 years old and planning to exit their businesses within 10 years. However, over 75% have done little planning for this significant financial event. The document discusses different exit alternatives and issues that may limit alternatives or lower business value. It positions exit strategy planning as helping owners achieve their goals through various services like education, advisory teams, and implementing an exit plan to maximize value.
The document discusses company valuation for startups raising funds. Some key points:
1) Determining valuation is difficult but important for fundraising. Investors want to "buy low, sell high" so valuation directly impacts their potential returns.
2) Common mistakes include not understanding terms like pre-money and post-money valuation and how ownership percentages are determined.
3) Valuation is subjective but tools like comparables, discounted cash flow analysis, and the venture capital method provide guidelines. Negotiation with investors also plays a role.
Plan your Exit at the Outset to SFU 2007David Shore
The document provides information about Stirling Mercantile, a corporate finance advisory firm. It discusses goals for building a business, exit strategies, and considerations for planning an exit from the outset. Key points include planning for an exit, understanding potential buyers and service providers, positioning value, structuring a deal, due diligence, and financial modeling best practices.
Succession Planning and Valuing/Buying/Selling/Merging rep firmsCharles Cohon
If you don’t have a plan to sell your company some day, you’re missing out on capturing the value you created as you grew your firm. Get the information you need to help you plan to sell your company from MANA CEO and President, Charles Cohon. One of the best ways to sell your company is to sell to your employees so we also cover key points on recruiting new salespeople to your rep company.
Considering selling your business. Presentation goes through all elements of The Exit Process, from pre-sale, to selecting an advisor, to preparing marketing materials, to the LOI, negotiating a deal and closing. For business owners and advisors such as accountants and attorneys.
Most of the time VCs have one or more discrete reasons for saying “no.” Although it would be ideal if they relayed them to founders clearly and openly, they sometimes feel pressure to take the less confrontational path and say vague things “this is too early for us” when the truth is more difficult to hear. VCs have a code around rejection language that often leaves founders scratching their heads to interpret, but candor is usually better for both parties long-term. Truthfully, the reason for the “no” often has little to do with the founder or the details of the business, but lots to do with that VC’s personal interests, portfolio, or history.
The document discusses exit strategies for business owners looking to sell their privately held companies. It explains that an exit strategy is a roadmap to maximize value and minimize taxes when selling a business. It also discusses why many business owners do not create exit strategies, as well as the key elements that should be included in an exit strategy plan such as timelines, potential buyers, valuations, management transitions and contingency plans.
The document discusses various aspects of entrepreneurship including what entrepreneurship is, characteristics of entrepreneurs, advantages and disadvantages of being an entrepreneur, different forms of business ownership like sole proprietorship, partnership and corporations. It also talks about acquiring existing companies through bankruptcy, business brokers or networking. Key steps in starting a new company or acquiring an existing one are identified. The document concludes with lessons learned from experience and the importance of entrepreneurship programs at universities.
The document provides an overview of Warren Buffett's career and investment approach. It discusses how he got his start in investing as a child, worked for Benjamin Graham, and eventually started his own partnership that became Berkshire Hathaway. It outlines his value investing strategy of focusing on companies with sustainable competitive advantages and purchasing them at a discount to their intrinsic value.
This document provides advice for business leaders and entrepreneurs on surviving an economic recession. It begins by noting that the current recession is more severe than past recessions and a long recovery is expected. It then discusses key challenges around access to credit and capital, sales and marketing strategies, and internal cash flow management. Specific recommendations include developing relationships with regional banks, retaining key employees where possible, negotiating with vendors, reviewing IT strategies such as cloud computing, and focusing on efficient operations and cash flow preservation.
This document provides guidance for business leaders and entrepreneurs on surviving the recession. It begins by recognizing that the current economic situation is more like a recession/depression and recovery will take a long time. It then provides advice in 3 key areas: [1] Sales & Marketing - focusing on preserving and growing customer base through differentiating from competitors and innovative marketing; [2] Internal Cash Flow - emphasizing expense reduction, negotiation, and operating frugally; [3] Internal Processes - reviewing processes to find efficiencies and using process improvement methodologies. For businesses in severe trouble, it recommends promptly seeking professional help and taking sensible risks to improve fortunes. The document concludes by emphasizing managing people resources effectively and involving employees.
This document provides an overview of Warren Buffett's biography, investment approach, and management style. It discusses that Buffett has been investing since childhood, learned from Benjamin Graham, and founded Berkshire Hathaway in 1965 which he has built into a massive holding company. His value investing approach focuses on buying shares of companies with a competitive advantage that are trading below their intrinsic value. Buffett prioritizes rational, candid management and resists pressure to conform to industry trends.
Warren Buffett is one of the most successful investors of all time. He began buying stocks at age 11 and learned from value investing pioneer Benjamin Graham. Buffett builds economic "moats" around companies with sustainable competitive advantages. His investment methodology focuses on analyzing a company's long-term earnings potential and only investing when he believes a stock is undervalued by at least 25%. Buffett takes a long-term, passive approach to generating market-beating returns and is also known for his candid management style and philanthropic efforts.
The document provides guidance for first-time business buyers on how to become informed buyers and improve their chances of successfully acquiring a business. It recommends buyers set clear acquisition objectives, understand the marketplace and deal processes, develop quality deal flow sources, consider working with professional intermediaries, and be patient as it is a lengthy process to find and close a deal.
This presentation is going to take a look at the financing of a business purchase.
If you are selling a business it will give you a guide as to what and how buyers can fund the acquisition.
This document provides advice for buyers and sellers of businesses in the endurance sports market. For sellers, it emphasizes the importance of thorough preparation, including organized financial records, contracts, employee information and legal documents. This preparation increases the business's perceived value and makes the sale process smoother. It also discusses factors that influence the sale multiple like growth rate, industry trends and buyer type. For buyers, it notes they will often find reasons to lower offers during due diligence and provides tips on evaluating a seller's claims and ability to close the deal.
This is a presentation I use regularly to talk to individuals and groups about the importance of being well prepared and following a disciplined process if you are thinking of buying a business. The presentation provides context and framework, raises questions for reflection, and provides guidance for some important preparatory steps.
Steve Mountain You Can’T Sell Your Business TwiceModwenna
The document discusses selling a business and provides advice from the perspective of someone who has gone through the process. It outlines what buyers want when purchasing a business, such as strategic fit and profitability. It recommends preparing by getting the right people in leadership roles, reviewing the business, and identifying potential buyers. When deciding to sell, the author advises creating a strategic plan, hiring experienced advisers, determining a price, and being clear on goals like leaving immediately and obtaining cash rather than shares. Major issues with selling include the time commitment, loss of focus, and warranties/disclosures.
The document provides information on how to build a successful business, including the importance of writing a business plan, obtaining financing, providing good customer service, using social media for promotion, and resources available for Virginia businesses. Key points covered include how a business plan can increase chances of success by 25% by mapping out goals and strategies, the different sources of financing like personal savings, bank loans, and government programs, how customer service is important for retaining existing customers and earning referrals, and how social media is a new way for businesses to earn attention by creating valuable online content.
Fund Raising, an art, not mastered by all the founders. About 90% of the startup fails to convert their business plan into investor consent. What are the steps followed by remaining 10% who succeed in closing the deal? What are the “Does & Don’t’” to be followed by a Startup- to raise fund from investors? What are the measures/precautions to be followed by startup to be picked by investors? Many a times, investor may agree preliminary, however, at a later stage they refused to move ahead, even the additional concessions offered do not motivate the investors. There are several questions which a founder had to face but failed to knock the right opportunity.
This document discusses the importance of business continuation planning through a buy-sell agreement to protect a business in the event of the owner's death, disability, or retirement. It outlines the key reasons to have a buy-sell agreement, including establishing the business's value, ensuring a smooth transition of ownership, and providing funds to pay estate taxes. The document also describes different types of buy-sell agreements and funding options, and stresses that a properly drafted agreement can save thousands in taxes and litigation costs.
This document discusses the importance of business continuation planning through a buy-sell agreement to protect a business in the event of the owner's death, disability, or retirement. It outlines the key benefits of a buy-sell agreement such as pre-determining ownership transfer, setting a fair purchase price, and providing funds to pay estate taxes. The document also notes that without a proper succession plan, a business could face problems like lost customers or disagreements that threaten the business's survival.
This document summarizes a seminar about buying and valuing privately held businesses. The seminar discusses factors that affect business value, maintaining confidentiality during sales, financing issues, and goals to reach win-win scenarios for buyers and sellers. The presenter, Joseph Harrel, has experience buying, operating, and selling his own business and now helps others through business brokerage. Key points include properly evaluating businesses, understanding tax considerations, maintaining confidentiality in negotiations, and taking steps to minimize risk such as due diligence and professional advice.
How Venture Capital is Like a RelationshipLisa Suennen
The document discusses how venture capital deals are similar to romantic relationships, going through stages from initial meetings and courting to engagement, marriage, and potential divorce. It outlines Psilos Investment Model which focuses on later stage healthcare companies that can lower costs and improve quality. The document also discusses deal sourcing, due diligence processes, term sheets, post-investment responsibilities like board participation, managing future financings, and helping portfolio companies exit through M&A, IPO or other means.
Proper preparation is key to getting a high return on selling your business. You should begin preparing three years before selling by ensuring you have three years of financial statements and adjusting your business to maximize profitability and cash flow. Consistency in profits is also important to demonstrate the strength and lower risk of the business. When selling, provide thorough documentation in a standard process to appear professional and transparent to buyers. Preparation increases the perceived value of the business to buyers.
The document outlines an 8-step proactive acquisition search process to help clients successfully acquire businesses. It begins with preparation, then locating and selecting target businesses not actively on the market. The process involves direct outreach, evaluations, negotiations and closing assistance. The service aims to increase odds of acquiring a suitable business within 4-6 months that better meets goals than reactive listings.
This document provides advice on building a successful business. It emphasizes establishing God as the cornerstone of one's business and having a strategic vision. It stresses the importance of understanding the market, having capable management, and strong financial controls. The document warns that businesses can fail due to uncontrolled cash flow, insufficient sales, high costs, or incompetent managers. Overall, it presents building a business as requiring hard work, perseverance, and focusing one's efforts on developing a niche in the market.
Looking to sell your business? This presentation maybe just what you're looking for!
I'm a stakeholder... get me out of here!
This is the full presentation, which took place on 01.03.11 and Eastwood Park Training & Conference Centre, Falfield, Wotton-Under-Edge (South Gloucestershire).
Speakers included:
- Chris Brill
- Will Abbott
- Peter Mardon
- Stewart Barnes
Financial advisors provide advice relating to investment strategies, mutual funds, bonds, and stocks, and their knowledge is more necessary than ever as Baby Boomers near retirement. Here's how to start your career as a financial advisor. In other words financial planning is the process of assisting the house owners in meeting their goals like child’s education, car purchase, vacation, retirement and so on, by way of appropriate management of the finances.
For more information visit now http://www.financialadvisertips.com
This document provides guidance on key considerations and steps for buying an existing business. It discusses evaluating the seller's reasons for selling, the business's financials and potential, necessary legal aspects, and determining a fair purchase price. The valuation approaches examined are balance sheet, earnings capitalization, excess earnings, and discounted cash flow. Negotiation involves preparation, poise, persuasiveness, persistence, and patience. Restructuring options for the seller include straight sale, sale with founder involvement, limited partnership, selling control, and establishing an ESOP.
The document discusses the benefits of buying an existing small business over starting a new business. It notes that existing businesses have a proven track record of success, immediate cash flow, trained employees, and established customers and suppliers. The document outlines the buying process and how to value a business, noting that many existing businesses can be bought using primarily the business's own cash flow to pay for the purchase. It emphasizes that a business broker can help navigate the buying process and arrange financing.
This document provides an overview of key things to understand when selling a business. It discusses the importance of understanding buyers' perspectives and needs, such as financial buyers wanting a reasonable salary and return. It also outlines common questions buyers will ask sellers and reasons why owners sell businesses, such as life changes, market changes, or success and burnout. The document emphasizes that selling a business is difficult, with only about 15% of businesses typically selling, and stresses the importance of having organized financial statements to facilitate the due diligence process.
1. 1. LIVE YOUR DREAM
2. BUILD YOUR WEALTH
3. CREATE YOUR LEGACY
4. GROW YOUR EMPIRE
2. Savings
Stock i.e.Apple –no matter how many IPADs
you buy, you won’t change the stock value
Buying homes – Florida is still seeing declines
in values and has been for years
Commercial Real Estate – Around the Globe,
developed land sites un-occupied
Businesses
3. Influence means you can affect the outcome
though not everyone does well
Plan and prepare well
Seek wisdom of trusted advisors
Use your vision and wisdom
6. 1951 when Fred Hervey purchased three
Kay’s Food Stores in El Paso, Texas.
one of the nation’s leading convenience store
chains w over 6,000 stores
7. Read: Behind the Golden Arches
April 15, 1955,[8] the ninth McDonald's
restaurant overall. Kroc later purchased the
McDonald brothers' equity in the company
and led its worldwide expansion
12. Over 50% close up in the first four years
according to an SBA.gov report
http://www.sba.gov/advo/stats/bh_sbe03.pdf
13. Realize it can still take years before the
franchise matures, if at all, to yield a profit
Just because you love the product does not
guarantee success
Do your research before selecting a franchise
Visit sites like:
http://www.wikidfranchise.org/
14. You can tell how well a business is doing up
until you purchase it
You should be able to improve the business
You “can” start making money right away
Note: you must still run it right – there is no
promise it will continue as is
15. Have personal control (avoid layoffs,
ceilings…)
Be your own boss
Your efforts and investment help you
Excellent potential
It can be exciting
Satisfaction (workers less happy)
Flexibility to meet your needs & desires
16. Lack of knowledge and / or experience
Under Capitalized (Remember Working Capital)
Wrong Location
Competition (Present & what is to come)
Asset investment too high
Rent too high
Cash Flow Challenges
* from SBA.gov – a great site for entrepreneurs
17. Advantages Disadvantages
You can create May need to do a
just what you great deal of
want research
You don’t pay for System and
someone else’s location unproven
efforts Tough to get
Total control financing
18. Advantages Disadvantages
It’s a “proven No success
system” guarantee
Quick to start up Upfront costs and
May have Royalties
financing Limited control
19. Chances of you “discovering
the next McDonald’s is very
unlikely
20. But just because it’s a franchise does not mean
you will be successful
Check out:
http://www.bluemaumau.org/6776/25_worst_f
ranchises_buy
21. Advantages Disadvantages
Cash flow may The initial
start immediately purchasing cost
Existing Unseen / hidden
customers problems
Easier financing Customers may
opportunities not stay …
(*if, if, if)
22. Time Period % Sold
1 to 3 months 9.7%
4 to 6 months 28.3%
7 to 9 months 38.0%
10 to 12 months 15.9%
13 to 18 months 7.6%
19+ months .7%
4 to 12 months to sell 82% of businesses
7 to 9 months to sell 38% of businesses
23. Many hunt for months
Some find what they seek in days
But 90% of shoppers never buy
Financing can take weeks or months
26. If married, these questions apply to you and to
your spouse:
How comfortable are you with debt?
Do you have a strong belief in yourself?
Do you believe it is a business you can
handle?
The answers relate to how much business
you can buy
27. If married, these issues apply to you and to
your spouse:
Geographic
Cultural
Industry type/knowledge
Education
Lifestyle change
People skills
28. Write out your life priorities and put
in writing what you are and are not
willing to sacrifice of a business
i.e. Time from family, investment
limits, character of the business…
29. How near to home? Don’t just get stuck
How many hours? on an industry at
Maximum first but open you
investment? mind to any
Minimum return on business that meets
investment? your needs and
Type of tasks? desires!
30. Put together your financial summary
Be aware of ways to finance your business
Did you know you can use your IRA/401K for
your business without penalty and taxes?
Contact us for advisors who can help with this service.
31. You will want information
about the businesses you
investigate;
be prepared to share about
yourself to them.
32. 1. Understand your cash requirements
2. Make sure you have appropriate.
Working Capital set aside!!!
3. Remember there are other expenses
such as rent and utility deposits.
Request a Buyer Cash Requirement Form from our offices!
34. Evaluate the business – and yourself –
regarding:
Absentee ownership
Generation of personal income
Management style
Growth expectations
Self-image
Physical requirements
Continued…
36. People are successful at lots of things
Kroc and Schultz were salesmen
Mike Lewis – MBA owns plumbing co
Sam Champala – PHD runs many gas stations
Kris VanOlst – Accountant owns restaurants
Cy – Attorney owns Logistics Company
Live Your Dream
37. Review preliminary written information
provided by the seller
Personally interview the seller to:
▪ Verify preliminary written information
▪ Establish a rapport
▪ Review business facilities and location
▪ Observe business operations during normal work hours
(if permitted)
▪ Collect additional data to determine value of business
38. What business should I buy?
Look for owner’s to say
you can't get good help
the equipment is no good
the competition is too fierce
the economy
39.
40. Has good records
Has good earnings (or is very well priced)
Has bank or owner financing offered
41.
42. Be wary of “Owner to Prove”
Look for numbers from Taxes
and Profit/Loss statements
Request 4506T
Call to discuss more things to watch out for when buying a
business!
43. You will probably have to sign a
NonDisclosure Agreement (NDA)or
Confidentiality Agreement (CA) of these
to get more details on a business.
*Read carefully and do not get locked into a buyer
fee obligation!
Request a sample from our offices!
44. Make an initial determination of business worth
based on:
Written information provided by seller
Interviews with seller and/or seller’s broker
Personal observations of the business
Analysis of historical records of the business
Additional independent and outside
investigations of the business
45. You should see evidence of earnings but you
typically don’t get copies of taxes, leases,
contracts and private details until you get to
the Due Diligence Phase following an
accepted, written contract to purchase the
business
Include in your Contingencies the right to have
acceptable evidence of claimed earnings
46. Research values including what
ratios similar businesses have
sold for –
NOT what For Sales are priced at!
A good brokerage can proved two or more
resources on what similar businesses sold for!
47. Or Owner’s Benefit
What did the business
generate for owner,
assuming one (1) full time
working owner.
48. Profit on Income Taxes
+ Nonrecurring Expenses
- Nonrecurring Income
+ Non-operating Expenses
- Non-operating Income
+ Depreciation
+ Amortization
+ Interest Expense
+ One Owner’s Total Compensation
= SDE
49. Unless buying a discounted distressed business:
Must cover debt service
Should return 15-20% on down payment
investment
Should provide a return on time (annual
salary)
Should meet the lender’s debt ratio
requirements
50. In some cases a “letter of intent” (LOI) might
be acceptable (See Letter of Intent)
You should submit a formal written “offer to
purchase” (earnest money contract) with
contingencies to the seller or seller’s broker
(See Purchase Offer)
51. An offer to purchase specifies price, terms, and
payment:
Cash due at closing
Assumption of debt (if any)
Bank and/or seller financing: term, etc.
Non-compete agreement
Consulting income or earn-outs
Continued…
52. The offer to purchase usually has contingencies
satisfied prior to closing:
Due diligence and confidential information not
disclosed by the seller that the buyer still needs
to review
Lease assignment or negotiation of new lease
EPA compliance
Licensing requirements
Franchise approval
Continued…
53. Other issues that are addressed in the offer to
purchase Agreement:
Buyer and seller warranties
Training
Allocation of purchase price
Desired closing date
Date by which seller must respond
54. Legal and tax Issues
Litigation
IRS audits/state sales tax
Accounting
Accurate picture of financial position
Accounting method used (cash vs. accrual)
Inventory valuation
State regulations
Environmental
55. Purchase/sales agreement
Promissory note
Security agreements
Bill of sale
UCC filings
Board of directors resolution (authorization to sell)
Real estate documentation (if appropriate)
Lease agreements
Other side agreements
Closing statements (prepared by attorney and/or
title company)
56. Pre-acquisition steps:
Create buyer’s corporate entity and/or
register fictitious name
Federal ID number
Corporate bank account(s)
Obtain appropriate licenses
(occupational, state sales tax, local, etc.)
Obtain insurance
57. NEVER CLOSE WITHOUT A CLOSING ATTORNEY
Execute (sign) the pre-approved closing
documents
Transfer proceeds of the sale to the seller
Transfer ownership of the Business to the buyer
58. Sellers will usually train
you for 2 weeks to 6
months
Anything beyond 2 weeks
is generally part of a
consulting arrangement
59. SEARCH
QUALIFYING
BROKER DEAL MAKING CLOSING
PROCESS
DATABASE
Explain Buying Process Business Interest Buyer/Seller First Meeting Coordinate Due
Diligence
Financial/Credit worthiness Qualify Buyer for Tour Business Loan Request Package
A specific Business
Business Review 1-Page Business
1- Probe Buyer’s continued Lender Introductions
Experience Summary Interest
Licensing Determine Buyer Interest Motivate Buyer to Act – Assist in Resolving All
Offer to Purchase Issues
Life style changes Nondisclosure Agreement Facilitate Negotiations Formal Contract
Geographic Review CBR LOI or offer to purchase Review Final Documents
Location /Data Package
Close!
60. Hire professionals who deal with buying
and selling businesses on a full-time basis
Do your homework
Know what you are willing to pay
Prepare yourself for the purchase
Enjoy the process and …
61.
62.
63. Legacy Venture Group Business Intermediaries
Call for more information on subjects covered in this
business buying overview
Request listing updates or to get our e-newsletter.
Info@BuyBizUSA.com
813.571.7700