quarta-feira, 28 de junho de 2017

The and Preparing an Offer

Buying a Business: Preparing an Offer
An offer generally defines the who, what, where, when, why, and how concerning a sale.
Is this a sale of stock or assets?
Who are the parties and what is being sold? A sale of a corporation's stock means the buyer will end up with the whole corporation, the assets and the liabilities. Any licenses, leases, agreements, contracts or other arrangements of the corporation should remain in effect. Only the ownership of the corporation has changed.
For corporations, a sale of assets means that the seller is actually the corporation and whoever owns the corporation will retain the corporation as an entity along with the corporation's liabilities, while the buyer will get the assets specified under the agreement. It is generally a good idea to list these assets.
Partnerships or sole proprietorships are sold as asset sales. This also means that any leases, licenses or other agreements must be renegotiated by the new owner unless they can be assigned.
A corporation can be sold either as an asset sale or a stock sale and will have two different prices depending on the purchase method. For instance, a corporation worth $300,000 but with $200,000 worth of liabilities may sell for $300,000 in an asset sale but only for $100,000 in a stock sale.
Asset and Stock sales have different tax consequences for both buyer and seller. A transactional accountant should be consulted for advise on tax minimalization.
What is the purchase price and how will it be paid?
How the price is paid will generally consist of a good faith deposit with the offer, an additional deposit at the acceptance of the offer to bring the total deposit up to 10% of the purchase price, and the remainder at the closing of the sale. The remainder at the closing may consist of cash provided by the buyer, cash provided by a financing company or bank, or by seller financing ( i.e. the seller is acting as the bank). Buyers often ask the seller to take some financing back themselves as a show of good faith that the seller believes in the future of the company. With any offer that includes seller financing, the offer should identify the amount, interest rate, number of years, and any other collateral for the loan.
Will the inventory be paid for separately from the business?
In businesses where the inventory fluctuates greatly from day to day, it may make sense to have one price for the business without the inventory, and then pay for the inventory separately at the time of the closing. If this is handled this way, the buyer will have to come up with cash for the inventory. Another way to handle this would be to specify a minimum dollar amount of inventory that is included with the business and pay for any additional inventory separately.
Seller training
The amount of seller assistance and training should also be specified in the offer sheet as well as any additional compensation paid for this period. Seller assistance during a transition period may be critical in ensuring the future success of the business. Assistance may include introductions to customers, suppliers, subcontractors, and others, as well as teaching the new owner the systems, proceedures, and daily operations of the business.
Seller non-competition
If the buyer wants assurance that the seller will not open a competing business after the sale, this should be specified in the offer. This should include the time period, geographic area, and type of business for which the seller can not compete.
Approximate closing date and place
The offer should be clear on when and where the deal is expected to close.
Contingencies
The offer should allow for a reasonable period of time between acceptance and closing for the buyer to gain assurance on the representations of the seller. This may include accounting records, legal matters, building and equipment condition, and general business outlook. If the business is not what the seller has represented it to be, the buyer should have the right to terminate the agreement.
The offer should also state the period of time the buyer has to arrange for financing if necessary.

Seller response
The offer should let the seller know how long they can take to think about it and respond with either an acceptance, a rejection, or a counteroffer. Contact Us Today!

The Springfield business brokers

Buying a business is can be a time consuming and confusing process. At GBE we strive to work with buyers to define their criteria for purchasing a business. We need to understand what it is that you, the buyer are looking for in a business opportunity. We will the show you businesses from sellers that want to sell. We handle the initial phone calls, separating the motivated sellers from those that are just curious as to what their business is worth. We will work with you from the initial negotiations, and follow through the paperwork from offer to closing. This is much of the legwork needed to put together a successful deal.
At GBE we take a multi-pronged approach to isolating the right opportunity for you to acquire.
Interview
One of our brokers will conduct an interview with you to learn all we can about your investment criteria; your business history, significant achievements, and major goals of acquiring a business. We will then use these key points to make you stand out from your competition amongst other buyers.
Financial
We do request a Personal Financial Statement in an effort to qualify what types of businesses would make the most economic sense for you to pursue.
Pricing
At GBE we believe that the best way to achieve a fair price at which to market a business comes from a non-biased qualified third party. (See the related section on this) Hence many of our sellers have invested in a third party appraisal. These third party appraisals are commonly available to help you understand how GBE arrived at the selling price to market our listings.
Negotiations
We will work with you to structure an offer to purchase. Once an offer has been received with the appropriate down payment, this offer will be personally presented to the seller for their review. During this process we will convey your thoughts and reasoning about your offer to the seller. You will then receive the appropriate feedback from the seller's response to your offer. The ultimate goal is to achieve acceptance on price and terms that make all parties content.
Closing
Once negotiations have led to a successful purchase agreement, we will take the proper steps to ensure an orderly process to closing the deal. Getting the transaction closed is the primary goal after an offer is accepted. Keeping on top of the transaction, and being forward thinking is what a seasoned broker can do get the closing done!
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And Keene business brokers

Information that Generally Comprises an offer
An offer generally defines the who, what, where, when, why, and how questions about a sale.
Is this a sale of stock or assets? Who are the parties and what is being sold?
A sale of the corporation's stock means the buyer will end up with the whole corporation, the assets and the liabilities. Any licenses, leases, agreements, contracts or other arrangements of the corporation should remain in effect. Only the ownership has changed.
For corporations, a sale of assets means that the seller is actually the corporation and whoever owns the corporation will retain the corporation as an entity along with the corporation's liabilities, while the buyer will get the assets specified under the agreement. It is generally a good idea to list these assets.
Partnerships or sole proprietorships are sold as asset sales. This also means that any leases, licenses or other agreements must be renegotiated by the new owner unless they can be assigned.
A corporation can be sold either way and will have two different prices depending on the purchase method. For instance, a corporation worth $300,000 but with $200,000 worth of liabilities may sell for $300,000 in an asset sale but only for $100,000 in a stock sale.
Asset and Stock sales have different tax consequences for both buyer and seller. A transactional accountant should be consulted for advise on tax minimization.

What is the purchase price and how will the it be paid?
How the price is paid will generally consist of a good faith deposit with the offer, an additional deposit at the acceptance of the offer to bring the total deposit up to 10% of the purchase price, and the remainder at the closing of the sale. The remainder at the closing may consist of cash provided by the buyer, cash provided by a financing company or bank, or by seller financing ( i.e. the seller is acting as the bank). Buyers often ask the seller to take some financing back themselves as a show of good faith that the seller believes in the future of the company. With any offer that includes seller financing, the offer should identify the amount, interest rate, number of years, and any other collateral for the loan.
Will the inventory be paid for separately from the business?
In businesses where the inventory fluctuates greatly from day to day, it may make sense to have one price for the business without the inventory, and then pay for the inventory separately at the time of the closing. If this is handled this way, the buyer will have to come up with cash for the inventory. Another way to handle this would be to specify a minimum dollar amount of inventory that is included with the business and pay for any additional inventory separately.
Seller training
The amount of seller assistance and training should also be specified in the offer sheet as well as any additional compensation paid for this period. Seller assistance during a transition period may be critical in ensuring the future success of the business. Assistance may include introductions to customers, suppliers, subcontractors, and others, as well as teaching the new owner the systems, procedures, and daily operations of the business.
Seller non-competition 
If the buyer wants assurance that the seller will not open a competing business after the sale, this should be specified in the offer. This should include the time period, geographic area, and type of business for which the seller can not compete.
Approximate closing date and place
The offer should be clear on when and where the deal is expected to close.
Contingencies
The offer should allow for a reasonable period of time between acceptance and closing for the buyer to gain assurance on the representations of the seller. This may include accounting records, legal matters, building and equipment condition, and general business outlook. If the business is not what the seller has represented it to be, the buyer should have the right to terminate the agreement.
The offer should also state the period of time the buyer has to arrange for financing if necessary.

Seller response
The offer should let the seller know how long they can take to think about it and respond with either an acceptance, a rejection, or a counteroffer.

The RI business brokers

There are generally three different types of financing available to the Buyer. 1. Seller financing. Many purchases of small business are structured so that the Seller funds a substantial portion of the purchase price IF the Buyer gives the Seller a large cash down payment. This is the quickest way to close a transaction in that there is no lender involved, and thus no institutional requirements to be met.
A Buyer may also make an offer based on a combination of a down payment, a commercial loan, and a Seller's note.
2. SBA loans. Loans that are guaranteed by the U.S. Small Business Administration are a common source of funding for Buyers. Commercial banks and non-bank lenders both offer them. It is important to apply to an experienced SBA lender, as rookie institutions have difficulty fulfilling all of the SBA requirements on a timely basis. Also SBA lenders will lend on the cash flow of the business and not just the assets that can be used as collateral. Your Global Business Exchange Broker can refer you to several different lenders.
3. Commercial Banks. These institutions typically loan money to companies with plenty of assets as collateral, have an existing relationship with the Buyer, or are refinancing existing company debt. In general they are not amenable to loans under $1 or $2 Million.

The Selling and business

We take a very aggressive approach to marketing a business while still maintaining confidentiality. After all, the quicker we sell your business the quicker we earn our commission. Our goal is to find you the maximum price in the shortest period of time. Our marketing efforts target three main types of buyers.
Strategic Buyers: Strategic Buyers are primarily companies who acquire complementary businesses or merge with them. These companies look for synergistic businesses that would improve their own bottom line by more than the incremental increase of just adding the seller's business to their own. In other words, they seek situations where 2 plus 2 equals 5. These situations can come from economies of scale, cross selling of products to existing customers, cost savings in management or other expenses, or other market advantages. Strategic buyers generally look for competitors, suppliers, customers, or similar businesses in a different geographic area.
Financial Buyers: Financial buyers are individuals or investor groups that acquire companies as an alternative to investing in stocks, bonds, or other securities. They are primarily concerned with their return on investment (ROI) and generally do not want to be owner-operators. Therefore they generally prefer businesses that already have absentee owners and strong management in place or businesses where the owner will stay on after the sale for an extended period of time.
Entrepreneurial Buyers: Entrepreneurial buyers are generally individuals who want to live the American Dream of owning their own business. These buyers include down-sized baby-boomers, immigrants who need to buy a business to get their green cards, employees in the industry who want to strike out on their own, workers who want to be the boss, spouses, risk takers who want more than a paycheck, career changers, graduating students, or anyone who wants to realize the American dream: owning your own business.
We take a shotgun approach and target all the different types of buyers in the market in order to find the one right buyer who will pay you the most money. We utilize cutting edge technology combined with years of relationship building to uncover potential buyers for a business. Under ideal circumstances, multiple buyers will be competing to acquire a business, allowing us to maximize the return to the seller. Our methods include extensive advertising in regional and local newspapers and trade magazines, foreign language publications, targeted direct mail, internet promotion, telemarketing, and database marketing.
The first step in selling a business is to speak to one of our business analysts. Since the sale of a business requires cooperation and mutual effort by the owner and the intermediary, we think of our relationship with our clients as a partnership with the mutual goal of selling their business. By thoroughly evaluating your business, taking into account your current situation as well as its future potential, our analyst will determine what help we can offer you in the sale your business. Our analysts can also advise you on the salability of your business and guide you in setting an asking price in line with the current market value.

The and Boston business brokers

Once listed, our marketing efforts produce inquiries from potential buyers. From the initial inquiry the selling process generally takes the following form: 1. Confidentiality Agreement
2. Buyers examination of documents
3. Preliminary discussions
4. Offer to purchase
5. Purchase and sale agreement
6. Closing
1. The buyer signs a Confidentiality Agreement. At this time it is also appropriate for the buyer to show evidence of his financial background. He may do this by submitting a Personal Financial Statement or a supporting letter from his bank qualifying the buyer financially.
2. This is a buyers initial examination of documents such as business summary, tax returns and profit and loss statements.
3. In a face to face meeting buyer and seller discuss various aspects of the business; marketing practices, competition, ways to grow the company. The seller may also relate his reasons for selling ( one of the first questions a buyer will ask ) and the buyer can describe how his business background has equipped him to successfully operate the business.
4. An Offer to Purchase is an attempt to arrive at a satisfactory selling price and a general agreement outlining the terms and conditions under which a transfer of the business will take place.
5. A Purchase and Sale Agreement formalizes the deal. This document will encompass the elements of the offer to purchase and will detail other factors that may have arisen during negotiations.
6. Closing. Throughout the complex process from preparation to purchase and sale agreement, your goal has been to arrive at the closing.

Throughout the selling process, keep running your business. Don't allow revenues to slip or an important customer to be ignored. Your business may sell quickly or it may take longer than wished. However, at all times, you must be able to present your business as an ongoing, successful, and profitable operation.

And ow Music Can Help Increase Business Opportunities Online

So we left into discussing about the advantages of getting background music in your website to increase your business opportunities online. Today is the continuation of our discussion.
We’ve already learned how music relaxes your visitor and influence their feelings; helping you a lot to maximize business opportunities in the Internet. Now you should know that background music in your website is a must to support your business strategy, too.
You wanted to maximize business opportunities, right?! Then you should’ve pondered by now that standing out among hundreds, if not thousands, of websites out there is a must to achieve this. And the background music is just a basic thing to put in your website.
Unfortunately, basic they may be, some website owners don’t seem to realize this. And for starters, I guess this is something you should take advantage of to cope up with the competition.
Now that’s for you to ponder today. See you on the next post for more online business tips.
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