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
Selling Family-Run Businesses Businesses owned or operated with the involvement of more than two family members are generally considered family-run. Many family-run businesses are quite successful due to the expertise and longstanding collaborative efforts of the family members active in the business. Indeed, over 40% of family-run businesses are passed down to the second generation, … Read more
Debt Assumption in Business Sales Corporate debt is borrowed money on a long term basis that is used to serve a financial need that can not otherwise be met. This differs from a company’s accounts payable (A/P) which represents short term liabilities owed by a company for products or services purchased on credit. Long term … Read more