pdakin

Recently, I was asked to write an article for the Finance New Mexico.  Holly Eakes, of The Holly Company provided some of the content.  Today I found content in an email from Antonio Lopez,  Santa Fe Financial Advisor with Merrill Lynch.  This is complementary information about preparing to retire. The article:  Early planning can help owner live off assets from a business sale. Many business owners dream of selling their business at a [...]

The business owner’s dream, early retirement - In the end, almost every owner wants to sell his or her business.  Many want to sell it at a price that will pay them in retirement what they earned while working.  Few do.  One must plan way in advance to sell and earn the same.  Earning the same from merely the sale of the business is unlikely. I first ran into this problem of not [...]

A buyer and I were discussing a possible partnership with the selling business owner.  Because I am neither an accountant nor an attorney, I always demure from making structure recommendations but I certainly have opinion on things that should be included.  This is a quick list made for the buyer.   Perhaps you have other contributions. Quick notes:  These are things that I believe should always be in place in a partnership: An operating [...]

Don’t you find that sometimes it is better to take the road of least resistance? My short and sweet example is a need to identify a gift for a client., Rainforestbaskets.com.  I had decided on an engraved garden stone with an image and text, using their fonts and images.  In the end the stone was to be cut with a laser. I could probably have created the artwork, though it would have taken [...]

We have all seen it happen.  A great business goes south.  The going south can be due to a number of situations – change in trends, economy, embezzlement  (way too much of this for sure,) illness, mismanagement of records, too little capital to support needs, not keeping one’s eye on the ball (aka business.) It is so easy to become too comfortable.  After all, it has always worked well. Particularly in today’s world [...]

In two listings of businesses for sale this year, the owner(s) have consistently presented as very bright, operating not just any business but each a business with some unique features, though not necessarily complex.  Obviously complex is in the eyes of the beholder. As I worked with each business and a couple of buyers, it became evident that we needed to be careful to not ‘over sell.’ In this case, it becomes imperative [...]

People have different styles for sure.  Adaptation, perhaps particularly for the anxious seller, could be a key for success. Overwhelming a buyer can push him away, thinking this business is too difficult for me or, if not too difficult, just way more than what I was interested in.  Among the roles a broker can have is to secure information, seller willing, when it is asked for; organizing information in a fashion that makes [...]

Included in the practice for my client buyer is interpreting their interest and capability for purchase; preparing a packet to represent the buyer to potential sellers; identifying prospects and securing their agreement to consider acquisition; investigating the selling firm’s condition and value for purpose of offer; preparing and presenting the offer; negotiating the offer for mutual agreement; formalizing changes in the agreement and ensuring communication to the neutral attorney regarding the various agreements [...]

Recently I wrote about various business brokering practices.  This is a summary of my practice, as written for a selling client: My brokering practice is multifaceted and, at the same time, responsibly limited. Included in the practice for my client sellers is preparing a valuation based on successful New Mexico business sales, validated against the market and buyer perspective; preparing and executing a marketing plan, including writing a marketing document for distribution; generally [...]

What exactly are the duties and practices of a business broker? My opinion: As with many other professions there are basics that must be met, physicians must ‘do no harm.’  Perhaps in business brokering, the basic is ‘fair and honest.’ Usually the broker has a specific duty to either the buyer or seller, whomever they represent.  However, the morality piece for me is being fair and honest must apply to all. In a [...]