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Blog2020-10-01T13:47:30-06:00

Typical Seller’s Process

Everything we say is routine, turns out to have its own twists and turns.  This is true with selling a small business as well.  In this case, a small business is one that has perhaps $3,000,000 in annual sales.  It may not be so small to operate and certainly requires the ingenuity of the owner. From the seller's perspective a typical sale looks like this: The owner elects to have [...]

By |November 28, 2016|

Piercing the Veil

Sylvia had been going great with her syndicated radio show. She had advertisers, 100 radio stations carried it. All was well until the one advertiser filed bankruptcy. Sylvia had been on top of it and had her business manager, just 45 days prior to the filing, collect $50,000 of the $100,000 then owed. She really felt good about this action and quickly replaced this advertiser with another Twelve months later [...]

By |July 14, 2016|

When Should I Sell?

Are We At the Peak of the Sellers’ Market? By Steve Raymond, The DAK Group | July 14, 2016 The past few years have been an excellent time for business owners to sell and this should continue for at least another year: interest rates are low, private equity firms and strategic buyers have cash to invest and are hungry for acquisitions that will be accretive to their businesses, and there [...]

By |July 14, 2016|

The Story of Rent

Marco purchased his real property in Santa Fe in 1989 and paid cash. From there he operated his cabinet business and survived the various economic ups and downs, paying Marco a nice income for his spectacular work. The business was operated as a sole proprietorship and paid the taxes, insurance and utilities for the property. Now it is 2016 and Marco wants to sell the business, of course charging a [...]

By |July 14, 2016|

Have a System In Place Now

Josiah had owned and operated the retail business for fifteen years.   He had a couple of staff members who had been with him, each for a minimum of four years. Then he got sick…   This was a clothing retail store. There was lots of inventory to manage and cash sales.   It wasn’t that there were no systems. Indeed there were. The problem was that each person had their [...]

By |January 8, 2016|

The financing of business…

Samantha had found just the right buyer. It really was kind of a miracle as this statewide business marketing consumables for national firms was not for just anyone. But Simon was perfect. He was living in central NM and had some experience in the industry, could work out of his house, while managing his invalid Mother. Simon had enough for the down payment and great credit for securing the loan. [...]

By |January 7, 2016|

When there is no more room…

Stewart owned a malt shop, the one his father started when Steward was just 10. The malt shop had a great location, had added sugar free, lower glycemic, and lactose-free options as these options became fashionable. What more...... He had added impulse items at the checkout and on stands in the middle of the floor, yet it seemed he had reached a plateau, there was no more revenue to be [...]

By |January 6, 2016|

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 [...]

By |April 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 [...]

By |November 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 [...]

By |November 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 [...]

By |November 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 [...]

By |November 20, 2014|
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