Archive for the 'Uncategorized' Category
January 4, 2012
1-4-2012
Charles Milam Awarded Certified Business Intermediary [CBI] Designation
RALEIGH, N.C. – Jeff Snell, principal broker for ENLIGN Business Brokers (
www.enlign.com), a firm representing profitable privately-held, NC companies for sale with annual gross revenues in excess of one million dollars, has announced that Charles Milam has been awarded the Certified Business Intermediary Designation [CBI] from the International Business Brokers Association [IBBA]. Milam completed all requirements and passed the comprehensive exam at the bi-annual international IBBA conference and expo held in Phoenix, AZ held November 14th through 19th 2011. The CBI designation is awarded following rigorous education, testing and demonstrated superior working knowledge of business brokerage skills. This difficult to obtain designation has been awarded to less than 800 recipients internationally.
News Facts: · Jeff Snell, principal broker for ENLIGN Business Brokers (www.enlign.com), a firm representing profitable privately-held, NC companies for sale with annual gross revenues in excess of one million dollars, has announced that Charles Milam has been awarded the Certified Business Intermediary Designation [CBI] from the International Business Brokers Association [IBBA]. · Milam is a Business Broker with ENLIGN Business Brokers working with business buyers and sellers in the Triad area of North Carolina.
“As Certified Business Brokers We deliver the highest market value in the shortest amount of time, with complete confidentiality™, which is what our business seller’s expect for their years of hard work.” said Michael Fekkes, CBI another ENLIGN Broker who represents small and medium business sellers in Tennessee. ENLIGN is a strong supporter of the IBBA, which is the leading organization dedicated to raising the level of professionalism within the industry through its CBI and Mergers and Acquisition programs. “In a state like NC where there is no regulation of business brokers it is even more important that business owners look for the credentials of the individuals and firms being considered to represent them.” stated the firms Principal Broker and Founder, Jeff Snell, CBI, ABI.
About ENLIGN Business Brokers: ENLIGN Business Brokers, which has its headquarters in Raleigh, N.C., provides seller and buyer services, professional negotiation, and valuation and marketing services to small- and medium-business sellers and buyers in the Southeast and nationally through the ENLIGN Business Brokers Affiliate program and ENLIGN Professional Partners Program (EPPP). ENLIGN provides business owners wishing to sell their businesses with discrete, objective counsel and valuation advice, and an innovative, comprehensive approach to marketing businesses for sale. Complete confidentiality is offered throughout the process. ENLIGN, which is a member of the International Business Brokers Association (IBBA), M&A Source and the American Business Brokers Association (ABBA), requires that its agents and affiliates have owned a successful business of their own, hold an advanced degree and be members of IBBA working towards or having completed the Certified Business Intermediary (CBI) accreditation. For more information about buying or selling a business or becoming an ENLIGN affiliate broker, contact Jeff Snell at
jsnell@enlign.com or visit the Web site at
www.enlign.com.
Keywords: ENLIGN Business Brokers, Jeff Snell, Charles Milam, Michael Fekkes, brokerage, business seller services, business buyer services, professional negotiation, valuation services, marketing services, business sellers, business buyers, North Carolina, NC, Raleigh, Cary, Durham, Chapel Hill, Research Triangle Park, RTP, Tennessee, CBI, IBBA, Certified Business Intermediary, International Business Brokers Association.
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Putting a price on business.
By: Barbara Taylor
Is it 2012 yet? From where I sit, the Great Recession has felt like the movie “Groundhog Day,” in which Bill Murray relives the same miserable day over and over again. For those of us waiting for the business-for-sale marketplace to turn the corner, 2012 brings a number of reasons for hope, many of which are addressed in a just-published New York Times article. While the decision to sell your business should be entered into with careful thought and planning, here are five reasons you may want to get a deal done by the end of 2012.
1. Expiration of the Bush-era tax cuts.
As the article spells out in detail, the expiration of the Bush-era tax cuts could have a significant affect on the after-tax proceeds of a business that is sold after 2012. While you’re getting your books in order and scheduling a year-end meeting with your accountant, make a note to ask about the tax savings associated with selling your business in 2012 versus waiting another year or two. If you’re on the fence, the answer to this question may point to a decision.
2. This was a good year for many small businesses.
I have spoken with several small-business owners whose sales and income numbers have finally returned to pre-recession levels. Businesses in the construction, leisure and entertainment, and Internet industries saw a solid upswing, to name a few. With expenses cut to the bone in an effort to survive the past three years, many businesses are lean, mean and ready for buyer scrutiny.
One thing to keep in mind is that small-business valuations are not what they were. “Don’t make the mistake of asking pre-recession prices,” said Mike Handelsman, group general manager for BizBuySell and BizQuest, in a recent article. “Buyers will often have no problem paying for a strong business, but they will still scoff at overvalued listings.”
3. There’s still plenty of money on the sidelines.
The buyers are out there! Corporate buyers and private equity groups in particular are sitting on record amounts of cash and looking to put it to use through strategic acquisitions and investments. Meanwhile, many owners of middle-market businesses (defined as having at least $2 million in pretax earnings) have been waiting until the economy improves to go to market. Bolstered by stronger management and more access to capital than their Main Street counterparts, many of these businesses have remained robust throughout the recession. If you own a healthy and profitable middle-market business, 2012 will continue to be a seller’s market for you. Even at the Main Street level, my firm represented more individual buyers looking to leave corporate America behind and purchase an existing business in 2011 than ever before. The problem for Main Street continues to be the availability of traditional bank lending for small-business acquisitions.
4. The market may be flooded soon.
With Baby Boomers retiring en masse over the next 15 years, a lot of business owners will be heading for the exit. There are predictions that this will put a damper on small-business valuations, as the supply of businesses will outweigh demand. Whether or not you sell in 2012, you should start planning now to position your business for sale in what could become a crowded and competitive marketplace.
5. It may be time to get on with your life.
Many business owners who were looking to sell over the last three years have had to put their lives on hold, shift into survival mode and weather the economic storm. For these folks, the opportunity to cash out at a decent price and move on will be more than welcome.
While 2012 may be a good time for many business owners to sell, that’s not to suggest that you should try to market-time a sale, something merger and acquisition professionals like Gary Brooks — president of Exit Plan Pros — caution against. “Those sellers who tried to time the market were completely surprised at how quick the market dried up in 2008,” said Mr. Brooks. “I have a client that turned down an offer for $11 million in 1999 because he thought that expansion would go on for a few more years. We had another offer for $6.5 million in 2007, and now the business is worth $2 million or $3 million.”
Whether the coming year breathes fresh air into what has been a stagnant market remains to be seen. If you do plan to sell, keep in mind that it typically takes about a year to complete a transaction. The longer you wait, the harder it will be to get a deal closed by the end of 2012.
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Most articles written by business brokers (or their PR firms) are about all the wonderful reasons you should hire a business broker to facilitate the sale of your business – and there are of course some really good ones that focus getting the highest market price in the shortest amount of time with complete confidentialitytm. (Which happens to be a Trademarked slogan of ENLIGN Business Brokers.)
However, this article is about why you SHOULD NOT under any circumstances hire a business broker to sell your business.
1. You have no financial records, poor records, “multiple sets” of records or are taking cash off the books that you want considered in the sale. A business broker can’t help you. Get your financial house in order and we can talk in 12 months.
2. You want to ‘see what happens’. Business brokers are compensated based on performance. Even those that charge a retainer (like ENLIGN) don’t earn a dime until and unless your business actually sells. If you aren’t willing to sell if presented a fair offer, don’t list it and waste hundreds of hours of other people’s time.
3. The company is about to fail or take a big hit such as the loss of your top sales person, a large account, loss of a credit line or exclusivity of a product and you aren’t willing to disclose it. There is no way that a competent buyer will miss this during due diligence and it will either kill the deal or be priced out. These events don’t make a company unsellable, but they must be disclosed and considered in the asking price.
4. The company has cash flow problems or “can’t make payroll on Friday”. Properly preparing a business to be marketed takes at least two weeks. The average time to identify and qualify a buyer, complete lending applications and underwriting can be 12 months. Selling a business is not a quick fix it should be part of a long term strategic plan. If you have problems big enough that you need to sell the business, who is going to pay you money for those same problems?
5. You aren’t willing to provide any seller financing. The fact is the majority of business acquisitions are funded by commercial loans with an SBA guarantee. The SBA requires (it’s not an option or negotiable) that the seller finance a portion of the sale price. Typically it’s 10% of the sale price and the term is usually 5 years. Sometimes the seller note is on full stand-by for up to 2 years which means no interest or principal payments during that time. If you aren’t willing to comply with SBA regulations don’t hire a broker (and understand that your business is probably now unsellable).
6. You really want to sell it yourself but your attorney, accountant, financial advisor, private wealth manager (fill in the blank) told you that you should hire a business broker. If you don’t believe that a business broker will save you significant time, money and frustration throughout the process and more than earn the large fee that will be paid at closing don’t hire them in the first place! Marketing and selling a business is one of the most complex transactions imaginable. There are multiple stakeholders including not just the buyer and seller, but their spouses as well, the lender, the SBA, the loan packager, both parties attorneys and accountants. There are literally dozens and dozens of terms to be negotiated that all directly impact the financial benefit you will receive.
The sale of your business is likely the highest value transaction you have undertaken so far. It’s wise to seek the advice of your trusted advisors including a business broker. If you ultimately choose to work with a business broker make sure you check out our free article on Questions to Ask a Business Broker. Ultimately though selling a business is a complex transaction that takes a fair amount of time that is best managed by experienced professionals.
While there are some compelling reasons to hire a business broker to sell your business this article is intended to illustrate a few of the reasons that working with a business broker would not be advised.
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Local Business Brokerage Adds New Broker to Experienced Team
Raleigh, N.C.- Jeff Snell, CBI, ABI and Principal Broker of ENLIGN Business Brokers, a firm representing profitable privately-held, Southeastern companies for sale with annual gross revenues in excess of one million dollars, has announced that Jim Swigart has joined the firm as a Broker. In this role, Swigart will serve as a liaison between buyers and sellers in business transactions.
Mr. Swigart has ten years of banking and investment banking experience and has previously worked for the middle-market M&A group of PricewaterhouseCoopers and a middle-market M&A boutique founded by the former heads of M&A at Dean Witter and Paine Webber. During those ten years, Mr. Swigart worked on closed M&A transactions with a cumulative value in excess of $1 billion.
Swigart received his MBA from Columbia University. He is also a member of the International Business Brokers Association (IBBA).
Mr. Swigart is the sixth industry professional to join ENLIGN in the 2011 making ENLIGN Business Brokers not only the fastest growing, but the largest in the region as well with 15 business brokers serving all of North Carolina, Georgia and Tennessee.
News Summary:
Jeff Snell of ENLIGN Business Brokers (www.enlign.com) has announced that Jim Swigart has joined the firm as a Business Broker.
-> Swigart received his MBA from Columbia University.
-> Swigart is a member of the International Business Brokers Association (IBBA).
Related Links: www.enlign.com/contacts.html
Quotes: “ENLIGN is raising the bar of professionalism in the business brokerage industry and I want to be a part of that.” Commented Mr. Swigart.
“Swigart extends ENLIGN Business Brokers capabilities to larger transactions and brings unique experience and talent to the team.” Added Jeff Snell, CBI, ABI.
Relevant Links: www.enlign.com/contacts.html
About ENLIGN Business Brokers: ENLIGN Business Brokers, which has its headquarters in Raleigh, N.C., provides seller and buyer services, professional negotiation, and valuation and marketing services to small- and medium-business sellers and buyers in the Southeast and nationally through the ENLIGN Business Brokers Affiliate program and ENLIGN Professional Partners Program (EPPP). ENLIGN provides business owners wishing to sell their businesses with discrete, objective counsel and valuation advice, and an innovative, comprehensive approach to marketing businesses for sale. Complete confidentiality is offered throughout the process. ENLIGN, which is a member of the International Business Brokers Association (IBBA), M&A Source and the American Business Brokers Association (ABBA), requires that its agents and affiliates have owned a successful business of their own, hold an advanced degree and be members of IBBA working towards or having completed the Certified Business Intermediary (CBI) accreditation. For more information about buying or selling a business or becoming an ENLIGN affiliate broker, contact Jeff Snell at jsnell@enlign.com or visit the Web site at www.enlign.com.
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By John Warrillow | @JohnWarrillow |
Oct 14, 2011
It seems to me that we’re at a fork in the road: there are some positive signs that the economy is entering the earliest stages of a long term expansion, but at the same time, if I dare read the headlines, it seems we’re destined to repeat 2008.
It’s precisely because we’re at this inflection point that I see a lot of business owners thumbing the eject button. If you’ve been thinking of selling your business, here are seven reasons to get out now:
1. You’ve lost the stomach for it
A lot of business owners took The Great Recession in the teeth. If you’ve got your business stabilized and the prospect of fighting through another recession leaves you panic-stricken, it’s time to get out.
2. The worst is behind you
Let’s say you were mentally getting ready to sell back in 2007. Then 2008 hit, and 2009 was your worst financial year in recent memory. You cut everything you could in 2010 and now, as 2011 nears an end, you’re starting to see some profit and revenue growth. With your numbers going in the right direction, now might be just the right time to get out.
3. The tax man is coming
Governments around the world are looking for money to fund the cost of an aging population. In the U.S., the capital gains tax rate is set to go up after 2012.
4. Nobody is lucky forever
If you’re lucky enough to be in a business that actually benefits from a bad economy, congratulations. You’ve probably just had the three best years of your business life. But no cycle lasts forever and right now may be a great time to take some chips off the table.
5. The coming glut
As a business owner, demographics are not on your side. As the baby boomers start to retire, we’re going to have a glut of small businesses come on the market. That’s great if you’re buying, but if you’re a seller, you may want to get out ahead of the flood.
6. The closing window
It’s been tough for private equity companies to raise money since 2008; so many firms had their last successful round of fund raising in 2007. Many of these funds have a five-year window in which to invest; otherwise they are required to give the money back to the people who gave it to them. Some boutique private equity firms will make investments in companies that have at least one million dollars in pre-tax profits (larger private equity firms will not go below $3 million in EBITDA); so if you’re in the seven-figure club, you could get a bidding war going for your business among private equity buyers keen to invest their money before they have to give it back.
7. A good time to be liquid
The stock market has been swinging wildly lately which is why it would be nice to get liquid. With cash in the bank, you will be able to take advantage of a fire sale on the stocks of good quality companies should the market sink.
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When evaluating a potential franchise opportunity, prospective franchisees need to take care to put the hype and their emotions in check, and carefully consider all factors relevant to their buying decision. After all, the franchise will be a 5- to 10-year relationship (at minimum, under most franchise agreements), so it is well worth the investment to put in some research and analysis before taking the leap.
The following are 5 potential traps for prospective franchisees to keep in mind when evaluating new franchise opportunities:
1. Putting Blind Faith in Sales Pitches
It is important to remember that, while the franchise relationship is to an extent a symbiotic relationship that relies on the franchisee’s ability to succeed, franchising itself is still a business, and so franchisors (some to a greater extent than others) will try to “sell” you to get you into their system. Most franchise sales pitches, like any others, will focus on the benefits of the system to the exclusion of its risks and limitations. Prospective franchisees should ask pointed questions to investigate the franchise opportunity beyond the unsolicited gloss provided by the franchisor.
2. Only Contacting the Franchisor’s “Recommended” Franchisees
One method of performing this type of due diligence is to speak with the franchisor’s current and former franchisees. Some franchisors will have lists of their “recommended” franchisees that they provide to prospects and suggest that they get in touch with. These franchisees are often “recommended” for a reason—they are the best-performing and most satisfied franchisees in the system.
The franchisor’s Franchise Disclosure Document will include contact information for all current franchisees, and all former franchisees who left the system within the last year. Prospective franchisees should use this information to their advantage when performing their due diligence.
3. Not Performing Comparative Research
Some prospective franchisees will get caught up in the hype of a famous, new or trendy franchise opportunity, and as a result fail to consider alternate opportunities. Before focusing in on one particular franchise, prospective franchisees should investigate competitive offerings, and perform comparative research to make sure that their desired franchise stacks up with the competition from an investment perspective.
4. Not Investigating Vendors and Locations Before Signing the Franchise Agreement
In addition to investigating the franchisor, prospective franchisees should investigate the franchisor’s recommended (or mandatory) vendors, and should also begin to perform research on potential locations for their franchised outlet. These are additional factors that can have significant impact on the success or failure of a franchise, and the more prospective franchisees can inform themselves about these factors, the better able they will be to make an informed decision about whether to move forward with the franchise opportunity.
5. Not Attempting to Negotiate the Franchise Agreement
Finally, I see this less and less as time progresses, but some franchisors will still claim that they are “not allowed” to negotiate the franchise agreement. This antiquated notion is simply not true, and prospective franchisees should indeed attempt to engage in active and realistic negotiations with their franchisor in light of industry, system, experience, economic and other factors. While certain provisions will understandably be deemed non-negotiable, on the whole prospective franchisees with experienced counsel should be able to negotiate reasonable modifications that limit their risk exposure and enhance their overall chances for success.
Jeff Fabian is the owner of Fabian, LLC, a boutique intellectual property and business law firm serving new and established franchisors and franchisees. Visit www.thefranchisecafe.com or www.fabianlegal.com for more information, or contact the firm directly at 410.908.0883 or jeff@fabianlegal.com. You can also follow Jeff on Twitter @jsfabian.
This article is provided for informational purposes only, and does not constitute legal advice. Always consult an attorney before taking any action that may affect your legal rights or liabilities.
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Small business owners work hard to establish and build their company and it is important that they fully recognize the drivers involved in maximizing this value when a company sale is being considered. Ten of the more common factors that are can increase the worth of a business:
- Experienced Management Team
Small companies generally lack a deep management team as they are usually managed by the owner/operator. For these business concerns, it is recommended that key staff members be thoroughly trained to manage the core elements of the company. In a variety of instances, the success of the company is hinged on the experience, industry contracts, and competency of the business owner. The business value will be enhanced when the company is being sold in those instances when the enterprise has a trained and capable staff in as buyer recognizes that this valuable knowledge is leaving with the owner. Additionally, it also mitigates the requirement for a protracted transition period encumbering the seller.
- Contracts – Customers/Vendors
Business that have customer and vendor purchase/supply contracts in place will enhance the business value. These contractual agreements provide assurance to the buyer that this company has established business that is likely to continue after the company is purchased.
- Employee Job Descriptions & Operation Procedures Manual
Creating job descriptions for all employees as well as producing an operations/procedures manual adds tremendous value to the company. Having step-by-step instructions on the company’s procedures provides confidence to the buyer that they have adequate data on the inner workings of the business once the owner exits.
- Gross Revenue Growth
Representing to the buyer that there is recurring gross revenue from existing customers in addition to illustrating a stable and growing top line will be important to maximize the value of the company.
- Diverse Products & Services
Companies who have built multiple streams of revenue involving a breadth and depth of products or services assist to reduce the risk of income loss for the buyer in a transaction. While exceptions will always come up, as some companies can be very prosperous when they are the dominant product or service provider. As a general rule it is beneficial to not have all of the eggs in one basket.
- Stability of Earnings
Small businesses are valued on a multiple of “adjusted” income versus the earnings reported on the tax return. Establishing a stable and consistent stream of income over a three to four year period will be one of the most essential factors in maximizing the value of a business. Buyers will be more likely to compensate the sell more for the company with growing earnings and lenders will be more willing to fund the deal.
- Varied Client Base
Making sure that a company’s client base is spread out without a heavy percentage of gross revenue with one or two customers will help to increase the business’ going concern value. When a significant percentage of revenue rests with a handful of clients a component of risk is created for the acquirer.
- Sector Growth Forecast
Businesses residing in a sector or industry that has strong growth prospects will generate strong interest from prospective buyers and enhance the value when the company is sold. Ascertaining the industry forecasts and specific company growth and value drivers will be essential in promoting the forecasted value. It is important to keep in mind that while future growth is very important, the majority of business valuations are calculated on a historical 3 year period.
- Prepared Financial Statements
Presenting a buyer with clean, accurate, & detailed financial statements helps to increase the confidence of both buyers and lenders not to mention assisting the owner better manage opportunities for growth & improvement. Eliminating any non-reported cash from the company is necessary as any off the books “cash” will not be factored in the business valuation.
- Strategic Marketing & Business Plan
There is a variety of elements involved in establishing a profitable and successful company, most of these revolve around strategic planning and the establishment of achievable goals. A strategic business plan should be viewed as a written road map typically created over a moving three year period. This document assists the owner in planning the business operations, sales forecasting, budgeting, and managerial tasks necessary to achieve the forecasted sales and earnings. This document is also a requirement by nearly every lending institution who is asked to provide capital or funding for either an acquisition.
About the Author:
Michael Fekkes is a Senior Broker at Enlign Business Brokers in Nashville, TN. Michael is a Certified Business Intermediary CBI®, a member of the International Business Brokers Association IBBA®, as well as a former business owner. He can be reached at 910.691.2202 or mfekkes@enlign.com. ENLIGN Business Brokers (www.enlign.com) is a Professional Services Firm serving the Southeast that is headquartered in Raleigh, NC with regional offices in Nashville, TN and Atlanta, GA. providing business intermediary services ranging from valuation and sale to growth through acquisition strategies.
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9/26/201
On average, privately held companies are sold every seven years and it is generally accepted that 20% of all privately held firms are for sale at any given time. Thus, it is important for business owners and their advisors to be aware of the issues that affect private business sales.
At this time, we feel that over the next several quarters there are several macroeconomic factors that will have a material impact on business owners who are considering the sale of their businesses. We have outlined them here for you and your clients to determine what, if any, action should be taken to minimize their exposure while maximizing the net retained proceeds from a business sale if such course is taken.
While ENLIGN is committed to continuing education and voluntarily maintaining certifications from the International Business Brokers Association and American Business Brokers Association, care should be taken in selecting business brokers as there is no regulation or oversight of the industry in many states. Additionally, we strongly advise all clients and prospects to retain qualified transaction professionals for legal and accounting/tax matters.
Business Transaction Statistics:
Business Brokers reduce the average amount of time required to sell a business. Ideally, planning and preparation for the sale of a business should commence at least one year in advance of the desired exit. Many times however this lead time is not available and the experience and relationships your business broker can bring is of additional value.
Attempting to sell a business without the assistance of a qualified transaction attorney, accountant, and business broker often results in improperly documented agreements, poor valuations, breached confidentiality and unnecessary tax burdens. Further, records show that businesses marketed by a qualified broker are three times more likely to result in an actual sale (the others close, are given away, enter bankruptcy, etc.). Selection of a qualified team should be the first item on the transaction-planning checklist.
Current Issues affecting Business Owners in 2011:
Increase of Capital Gains Tax: Barack Obama has stated he will support raising the Federal long-term capital gains rate to 28% from the current 15% rate. What this means for business sellers is that monies allocated to goodwill will be taxed at 28% rather than 15% – an effective increase of 46% being paid entirely from the seller’s proceeds. Those considering a sale in 1-2 years might elect to move up their timeline to retain more of the proceeds from closing by selling before such an increase can be enacted. Some financial analysts are predicting an increase to as much as 35%, although most believe 28% is most probable.
Aging of America: In 2011 the oldest of the baby boomers start turning 65. Of the approximate 83 million of them, many are business owners and many will be looking for exit strategies over the next 5-10 years. Reports indicate that beginning January 1st, 2011 every single day more than 10,000 Baby Boomers will reach the age of 65. That is going to keep happening every single day for the next 19 years! Supply and demand will surely apply to the market for businesses for sale. As supply increases, demand will likely remain consistent with prior periods. Business owners who list their businesses earlier in the cycle should receive higher multiples as a result of being on the favorable side of supply and demand curve.
100% Bonus Depreciation: On December 17, 2010 the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, also known as the 2010 Tax Relief Act, was signed. This Act amended Code Section 168(k)(5) to allow for 100-percent bonus depreciation in the first year of service for qualified property. There are certain requirements that must be met, but they are not onerous. This means that in an Asset Business Purchase the buyer, while this provision remains in place, can take up to 100% deduction of the purchase price allocated to qualified depreciable assets against taxable income in just one year. In theory, a business owner could make in profit up to 100% of the purchase price in first year profit and have a deduction equal to the entire purchase price. This is an incredible window of tax planning opportunity.
The sub-prime meltdown has affected everyone. Its impact on business sellers is being felt as banks tightened credit lending standards and fewer buyers are able to obtain financing. The mid-term forecast is that fewer qualified buyers will create additional pressure on business values. Recently however a pro business sentiment has been heard from the White House as the President appears to be embracing small businesses on the path to economic recovery. Billions have been allocated to small business lending through community banks. These funds are accessible for small business acquisitions.
There is a “New Normal”. Perception is reality as they say and the perception of buyers is that three years into the great recession they are tired of waiting for the economy to improve. The new normal is represented by lower interest rates, more realistic valuations by sellers and optimism regarding upcoming elections and the natural return to an economic growth cycle. Business buyers are reassured as reports of consumer confidence and public sector earnings reports are coming in positive and in many cases higher than expected.
We are seeing that businesses with sound financials and buyers with good credit and industry experience in the business being acquired are being financed with reasonable terms and conditions. Commercial business acquisition loans are receiving Loan Letters of Intent in as little as 2-3 days with full SBA underwriting approval in 3-4 weeks. It pays to have team members with significant lending relationships for your buyer.
Final Considerations:
Experienced advisors should be considered to manage the process of selling a business to insure confidentiality and allow the business owner to remain focused on operating the business.
Business Brokers are an effective resource to value, market, negotiate and advise business sellers. They do not take the place of attorneys or accountants; rather they work as an intermediary by and between the parties to assist in completion of a transaction.
The potential increase in Federal capital gains tax, the retiring of baby boomers, improving credit markets, strengthening consumer confidence, temporary preferential tax treatment of assets purchased in an asset sale and public sector earnings reports has improved business buyer confidence making now an ideal time to consider selling a privately held company.
Should you wish to discuss any of these issues in more detail please contact Jeff Snell, CBI, ABI of ENLIGN Business Brokers at 919-341-1100 or jsnell@enlign.com.
Additional white papers are available at the firm’s website, www.enlign.com to attorneys and their clients without charge.
ENLIGN Business Brokers works with transaction attorneys and accountants representing profitable privately-held, NC companies for sale with gross revenues in excess of $1,000,000.00. We deliver the highest market value in the shortest amount of time, with complete confidentiality.™
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ENLIGN Business Brokers is honored to have been invited and accepted the opportunity to speak at the UNC Kenan-Flagler Business School. On September 21st, Jeff Snell, CBI, ABI engaged two undergraduate 500 level business classes.
The principal topic was purchasing a business as an alternate path to entrepreneurship. Additional topics covered included; business brokerage as an industry, process of selling a business, the differences between small business and merger and acquisition transactions, business valuation, financing a business transaction, marketing a business for sale, factors that influence the value of a business, exit strategy planning and execution as well as a sample of some of ENLIGN Business Brokers current engagements and their unique characteristics.
Students were afforded a question and answer period which indicated that these groups of seniors were well prepared for business opportunities upon graduation.
Mr. Snell was invited to become a regular guest lecturer returning next semester to participate again.
The UNC Kenan-Flagler MBA program is widely recognized worldwide as one of the top business schools.
Mr. Snell is available for speaking engagements on topics related to business ownership, operations, value maximization and principally exit strategy execution through third party sale.
Related Links: www.enlign.com http://www.linkedin.com/in/jeffsnell
News Facts:
- ENLIGN Business Brokers Principal Broker has been invited to speak to two UNC Kenan-Flagler Business School classes.
- Jeff Snell, CBI, ABI guest lectured to students on September 21st 2011
- The core content centered around purchasing a business as another path to entrepreneurship.
-Additional discussion included business brokerage as an industry, process of selling a business, the differences between small business and merger and acquisition transactions, business valuation, financing a business transaction, marketing a business for sale, factors that influence the value of a business, exit strategy planning and execution as well as a sample of some of ENLIGN Business Brokers current engagements and their unique characteristics.
Quotes:
“Being invited to speak to some of the brightest up and coming business owners at one of the premier business schools in the world was an honor and a pleasure.” said Snell.
Keywords:
ENLIGN, Business Brokers, Jeff Snell, CBI, business, seller, exit planning, buyer, negotiation, valuation, marketing, UNC, University of North Carolina, North Carolina, NC, Raleigh, Chapel Hill, MBA, Kenan-Flagler, lecturer, speaker
About ENLIGN Business Brokers:
ENLIGN Business Brokers, headquartered in Raleigh, N.C. with a regional office in Nashville, T.N., provides seller and buyer services, professional negotiation, and valuation and marketing services to small- and medium-business sellers and buyers in the Southeast and nationally through the ENLIGN Business Brokers Affiliate program and ENLIGN Professional Partners Program (EPPP). ENLIGN provides business owners wishing to sell their businesses with discrete, objective counsel and valuation advice, and an innovative, comprehensive approach to marketing businesses for sale. Complete confidentiality is offered throughout the process. ENLIGN, which is a member of the International Business Brokers Association (IBBA), M&A Source and the American Business Brokers Association (ABBA), requires that its agents and affiliates have owned a successful business of their own, hold an advanced degree and be members of IBBA working towards or having completed the Certified Business Intermediary (CBI) accreditation. For more information about buying or selling a business or becoming an ENLIGN affiliate broker, contact Jeff Snell at jsnell@enlign.com or visit the Web site at www.enlign.com.
About UNC Kenan-Flagler Business School
The Kenan-Flagler Business School is located in the main campus of UNC located in Chapel Hill, NC. Additionally, the Kenan Institute has offices in several international locations including Thailand, Hong Kong, Rotterdam, São Paulo and Monterrey, Mexico. Its MBA program was founded in 1952. Recognized as one of the leading business schools worldwide and appearing in Businessweek Magazines Top 20 Business Schools every years since it’s creation in the 1980’s UNC Kenan-Flagler sets itself apart by focusing on three core principals; Values based Leadership, Hands-on experience and sustainable strategy.
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Sean B. Wheeler is a Senior Vice President of Business Banking for Comerica Bank.
Technology has opened up doors for a new class of high-tech criminal. Business owners and consumers are bombarded with articles and news reports warning against the dangers of identity theft, computer hacking, and other scams that were unheard of 25 years ago. While it’s important to keep your computer and financial records safe from unknown tech-scam professionals, the criminal your business could fall prey to could be much more familiar. Unfortunately, many of the most common types of fraud cases involve company employees.
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