Strategic Sale is Roadmap to Success Strategically selling a business involves formulating a plan – often years prior to the sale- to find the right buyer and maximize the purchase price. The strategic plan or roadmap to a successful business sale should be specifically tailored to the individual business and its financial profile. A confidential … Read more
Customer Deposits: Unearned Revenue When selling a business with a significant amount of customers who pre-pay a deposit prior to receiving goods or services, it is imperative to accurately define and fairly allocate the customer deposits at closing. Customer deposits are considered a current liability or unearned revenue (held in cash on the balance sheet), … Read more
Choosing the Right Business Broker Choosing the right business broker may seem like a daunting task for many business owners unfamiliar with the business sales process. The interview or meeting between the business owner and prospective business broker should alleviate any concerns about the broker’s credibility, experience, and competency. During the interview process, the business … Read more
Specialty Retailing Specialty retailing stores offer customers a specialized and focused line of merchandise as opposed to traditional retailing stores which offer a generalized line of merchandise in multiple product categories. Examples of specialty retailers include flower shops, furniture stores, equestrian feed stores, and sports equipment stores. The narrow focus of a specialized niche differs … Read more
What is A Circle of Competence? Famed investors Warren Buffett and Charlie Munger long ago popularized the mental model of staying within one’s circle of competence as an investment strategy. Staying within one’s circle of competence refers to investing only within areas where one has earned knowledge, skills, and expertise while avoiding investing in areas … Read more
Selling Your Private Duty Agency Due to its high demographic concentration of seniors and vibrant economy, the demand for home healthcare in South Florida has never been stronger. Private duty agencies occupy a special niche within the senior care industry by matching contracted caregivers with patients needing home healthcare (non-medical companion care or skilled care). … Read more
Staff Retention Critical After Closing A key component of a company’s intangible assets or goodwill is its employment relationships with its employees and independent contractors. For many businesses – especially in service-related industries – having a trained group of staff members is essential to acquiring customers, keeping customers, and ultimately generating profits. When it comes … Read more
Credibility Key When Selling Businesses In order to establish credibility when selling a business, the business owner – and by extension their business broker – must be trusted and believed by the buyer. By becoming a believable and credible source of information, it is also possible for a business broker to convince a buyer that … Read more
Don’t Misprice Your Business Mispricing a business due to undervaluing its intrinsic worth is a common problem among many business owners who wish to sell their business. Prior to selling, business owners should be aware that it normally takes 6-12 months on average to sell a business. An attempted quick sale in less than 6 … Read more
What is A Corporate Divestiture? Some business owners choose to sell part of their company’s assets or operations through a corporate divestiture. A corporate divestiture is different from a typical business sale in that only part of the company’s assets are sold while the balance is retained by the seller or parent company. Most corporate … Read more