pdakin

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So far pdakin has created 211 blog entries.

Seller/Purchaser Due Diligence

It is a pain ....but oh so important to both parties. Both Seller and Purchaser have due diligence needs. From the Seller perspective due diligence is the opportunity to demonstrate their statements of business value are factual.  It is also a time where a Seller can confirm the operational and credit worthiness of a Purchaser seeking financing. From the Purchaser perspective due diligence is the opportunity to ensure the Seller's statements of business [...]

2015-04-19T10:50:59-06:00April 19, 2015|

That buyer has no respect for me or my business!

Patrick opened his vitamin business 15 years ago. Now he has it listed for sale and the buyers are asking questions.   “They are questioning my integrity????” Patrick was outraged…. How could they suggest? These are some things that the buyers were seeing and becoming more reluctant along the way. These are some things that Patrick might have done differently: Report and adequately provide for unusual practices: If he was going to self-insure, he [...]

2014-11-25T08:42:44-07:00November 25, 2014|

It is a non-profit Business!

It’s a non-profit BUSINESS! When you take part in providing necessary goods and/or services you are in business. When in business, the goal is to provide these necessary goods and/or services efficiently and effectively. When you provide these necessary goods and/or services efficiently and effectively, your balance sheet shows a profit. When your balance sheet shows a profit the result is: For-profit businesses - pay dividends to stockholders and owe taxes Non-profit businesses [...]

2014-11-24T08:39:28-07:00November 24, 2014|

What do you mean – my business did not sell!!

Jennifer was devastated. “What do you mean, my business did not sell?” She had put 20 years into developing the best building construction business around. Everyone knew who she was as her name was in every advertisement, building-site sign, and business-league bulletin. But, perhaps that was the problem. Whether doing a lot of business or a little, the business not clearly identifiable as being able to stand without the owner may have challenges [...]

2014-11-23T08:41:17-07:00November 23, 2014|

Buy a Business or Build a Business?

Junior had to decide, “Do I buy or build a business from scratch.”  It is for most a clear decision but not the same for each entrepreneur. One reason to buy is to be assured of immediate cash flow, no uncertain ramp-up expenses.  Another is the ability create one’s specific dream, building on an existing proven foundation that is paying the bills For the build-it-myself entrepreneur, to spend all that money on buying [...]

2014-11-20T08:40:41-07:00November 20, 2014|

Offer to Close – What happens?

For a buyer, the up front investigation of a business may seem rather simple but what then?  What if I want to buy the business. First, gather round you professionals, an attorney to review documents and a CPA to assist with assessing the organization. In my practice and many main street business-for-sale transactions using an intermediary/broker, the process often includes these steps and features.  These are typical but, then, no transaction is typical. [...]

2014-09-04T07:56:34-06:00September 4, 2014|

What Value – my business?

Frankly, it is almost always a surprise, the value of a business.  Owners wanting to sell are often thinking the sale price will fully fund their retirement, the only requirement to continue to live as they have. Usually this is just not true. Note: Cash flow to owner is sometimes called discretionary earnings.  There are several models for this calculation, all leading to the same end.  It is good to know that the [...]

2014-03-31T10:59:12-06:00March 31, 2014|

What a new entrepreneur may need

This list is especially intended for owners of newly purchased businesses.  It could also serve as a check list for any owner or start up entrepreneur. It is a non-inclusive list as each business, business environment has its own nuances.  Often when a business is purchased a number of these are in place and easily transitioned.  It is usually better to not change systems for a period of time until there is a [...]

2013-10-31T13:49:45-06:00October 31, 2013|

Small ‘preneurs Appeal to Sell

How Can a Solo-preneur or Other Smaller Business Owner Be Appealing for Acquisition? While this example is written about two mental health providers, it could be about a construction company, web designer, etc. Fran and Frank had two different operational models and two very different prospects for sale. Fran a mental health provider had completed her training and joined a large health system.  After five years she was ready to be on her [...]

2013-10-30T16:11:33-06:00October 30, 2013|

George, the perfect hire (or not)

George was hired as the new operations director, replacing a very successful director of ten years.  George was perfect.  He had been found in a national search, in part conducted via mega, industry specific job websites.  His experience with similar companies demonstrated he would be a good fit.  He was hired and then… It was two years later when the owner, Gretchen, a woman busy with business-sales travel became suspicious.  Various line items [...]

2013-10-30T15:30:30-06:00October 30, 2013|
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