80213116 - Manufacturing, Distribution / Import Sewing Notions
July 29, 2008
8023116 - Manufacturing / Import, Sewing Notions
| Price | Down | Adjusted Net | Sales |
|---|---|---|---|
| $1,495,000 | $1,495,000 | $387,014 | $1,425,000 |
Consumer branded products manufacturer with long term, vendor partner relationships with some of the largest, US big box retailers. Manufactures unique line of sewing notions; distributes full line of seasonal embroidered products; distributes full line of crafting polyfoam products; contract manufacturer for corporate & team logo-wear. Customers include: Wal-Mart, Jo-Ann’s™, Michaels, Hobby Lobby, and AC Moore. Owner retiring after ~30 yrs in the industry, but will stay in commissioned sales role as needed.
If you would like to pursue this opportunity further, you may DOWNLOAD OUR Confidentiality Agreement.
Please fax the completed form to our office at (866) 353-0382. Upon receipt, we will forward the Business Listing Information for your review.
For further details, Contact Mike Ertel.
When It Is The Right Time To Sell Your Business, Will Your Business Be Ready?
July 1, 2008
| July, 2008 Op-Ed Article |
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When It Is The Right Time To Sell Your Business, Will Your Business Be Ready? It’s been estimated that the owner of a typical small- to medium-sized business has up to 90% of their personal net worth tied to their business. Their retirement plan is simple: Sell the business for a whole lot of money and live off the proceeds. Problems can arise for a variety of reasons when the business owner is ready to retire and the business isn’t ready to sell. In many cases, the business owner has underestimated the amount of time it will take to prepare the business for sale, and/or the length of time it will take to conduct an effective marketing campaign to find the right buyer and negotiate the best price and terms and actually get the deal closed. In other cases, the owner is simply unaware of the steps he/she might take to maximize the attractiveness of the business, and ultimately its market value. In the current economic climate, the buyers are also getting pickier and the successful seller may need to spend even more time and effort making their business saleable. Experts suggest that business owners begin as much as 3 to 5 years – and in some cases longer – prior to their ideal “last day” in the business. While this might seem excessive, there are several good reasons for such a lengthy planning and preparation period. First, more sophisticated buyers will insist upon reviewing 3 – 5 years of historical financial statements, preferably reviewed or at least compiled by an outside accounting firm. Larger & more sophisticated buyers may require audited financial statements. If your business is not doing this now, it can obviously take several years to build up this well-documented financial history. Furthermore, a business owner would be wise to anticipate some of the common issues that often show up in due diligence that will lead the buyer to either reduce their offer, or walk away from the deal altogether, and implement changes to eliminate or at least minimize them. Some common concerns are: Excess Customer Concentration; Lack of Management; Deep Threat of Technical Obsolescence, and Overdependence Upon the Seller. Additionally, a business owner might choose to implement several changes to improve the proven cash flow of his/her business, since this is so important in determining the ultimate market value of the business, and these can take time to implement and bear fruit. Likewise, the owner of a small- to mid-sized business should allow about 1 year and in some cases substantially longer to conduct an effective marketing campaign to find the right buyer and negotiate the best price and terms, and actually get the deal closed. Finally, many savvy buyers will want the seller to stay on in a management/consulting role for six to twelve months, and in some cases much longer. If you know of a business owner who’s thinking of selling or buying a business and who might benefit from a free consultation with us, have them contact me, or any of the M&A professionals at www.bradwaygroup.com © 2008, J. Michael Ertel, PA |
I have recently had my business valued. The value between what I believe the value should be and what is calculated are completely different. Why is this?
July 1, 2008
Q: I have recently had my business valued. The value between what I believe the value should be and what is calculated are completely different. Why is this?
A: There could be any number of reasons for this dilemma. Valuations are based upon assumptions, figures provided, and calculations based upon them. The numbers, assumptions, and calculations may not necessarily reflect the value of the business to an owner. There are methods and procedures available to improve the value of a business to a willing buyer. It is with these improvements, a business’ value can be augmented.
As part of my parent’s business succession plan, I will inherit property. Will I have to pay taxes upon the receipt of the property?
July 1, 2008
Q: As part of my parent’s business succession plan, I will inherit property. Will I have to pay taxes upon the receipt of the property?
A: Generally inheritances come to an individual tax free. It is the estate that must deal with the tax consequences in most cases. When an item is received by an heir, its basis is either determined by the fair market value upon the date of death or based upon the alternative date 6 months later.
