pdakin

In a recent business activity there was discussion of whether to yell at the landlord for being an obstructionist to the planned sale or whether to be cooperative.  I took the high road, that of seducing with honey.  For two months the problem was not resolved.  Then the deal began to crumble.  The further one gets from the original agreement the more time both sides begin to think about what they have agreed [...]

Years ago, a sailor friend was always just a member of the crew.  He, like I, would sail for pleasure and sometimes for a race.  He was quite often left immobilized by the motion of the boat.  In other words, he was sea sick a lot, leaving others to sometimes critical tasks.  Then he bought his own boat. At the time, I was stunned.  How could he make himself responsible for his own [...]

» Only buy a business from someone who is willing to sign a non-compete. Without their non-compete, the selling business owner can totally eradicate your newly purchased livelihood. Have your legal advisor ensure this is a part of the agreements you sign. Length of non-complete, business scope, and geography are all critical components of non-competes.

» Buying assets, not liabilities, at least those you can not support, is a best position. Most recommend asset-only purchases. Sometimes this is not possible. Therefore using your advisors will help to keep you from assuming the liabilities that are not appropriate for you to assume, e.g. unpaid taxes.

» Choose carefully your financier. It is very common for a number financial sources to be put together to facilitate the transaction. For your own contribution, don’t deplete your resources beyond reasonable. Leave yourself with a nest egg and a sum of money you might tap for the unforeseen. The current owner is usually a wise selection for financing. Having their vested interest in the future performance ensures they properly turn the business [...]

» Don’t do a deal without professionals around you. Business brokers, attorneys, financial advisors all have a critical role in protecting you from a mistake. Expert valuation, legal documents, financial recommendations for the structure of the sale and general advice are all important to having a transaction that benefits you. To assume you know may cost you in a deal gone bad, limit your financial potential, land you in court. Professionals protect your [...]

» Know yourself and your interest and capabilities to be first an entrepreneur and specifically with this business. Not everyone is cut out to run his or her own business. While the risk may be equally difficult in other income earning environments, often people who are successful as employees doing the same kind of work may not be successful or happy as a business owner, particularly if they have put up their life’s [...]

» Do due diligence after you sign a buy-sell agreement. Due diligence is the process of evaluating whether the business for sale in Santa FE or Northern New Mexico is what it is presented as. Do the clients exist and how faithful have they been in paying. Is the net income, owner take, what is presented. Are the expenses claimed reality and can you maintain them? What has the track record for performance [...]