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Write You - Cashing In Your Business?
Meetings held and organised by Pharmaceutical companies are an essential way of communicating and evolving scientific research, clinical development and medical education. However, there is always the danger that they can be seen as a blatant attempt to railroad Health Care Professionals into prescribing products by using lavish surroundings and hospitality to influence them.This is where the ABPI 2006 code of practice comes into its own, specifically clause 19 which deals with the arrangement and holding of HCP meetings within the Pharmaceutical industry. The key requirement being that the main purpose of the meeting should be its c
A beautiful picture but let's look at reality. Jack's deal with Pete from Cincinnati is based on a 30% down payment and there could be some major problems do
For many people, undertaking a job search is either a chore or a nightmare. With the right tools and job search help, however, a job search can be an adventure that lands you your dream job. Here are three tips to put you on the path to fulfilling careers.Design a PlanJust as you wouldn't a house without a set of blueprints, you shouldn't conduct a job search without a plan. Your plan should start with your goal. This isn't the career objective that you state at the top of your resumes. Instead, your career goal should getting paid to do something you're passionate about. Once you've determined your passion, the next step is t
Its almost 9 PM and you've got just one more order to fill because you promised “Henry” you'd have his order ready for pick up first thing tomorrow, Henry's an old customer, a good friend and has a machine down and the part we stock will have him up and going again. But the nagging thought comes back again . . . . “after 27 years I don't need this anymore, I'm gonna sell it!”
There are many different reasons why businesses are sold. But of all the reasons, the three most popular are retirement, burn out and major illness.
When you own a business and have fought the battle over the years, the time does come when you're ready to cash in the business and turn it over to someone else. You've built your dream, watched it grow and it has taken good care of you. Finally you've talked to your family, your CPA and your attorney and decide to do it. You place your business on the market! About a year and a half later, after negotiating with two individual buyers and two corporations, you do the deal with “Pete,” the nice guy from Cincinnati. Pete seems to be a good person, has a nice family and the proper background for the business. You've structured the deal with a good down payment and have agreed to finance the balance with interest over a seven year period. Sweet deal, right? Well, maybe.
After working with hundreds of business owners over twenty plus years and hearing all their stories, one precaution comes shining through the excitement of a sale! If owner financing is going to be a part of the deal . . . be very careful! It might come back to sting you. Especially if you plan to retire after the sale.
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in town, their condo at the beach . . . and the note on the business real estate was paid off two years ago. So now with the business sold they can settle back, take it easy and enjoy their grandchildren.
A beautiful picture but let's look at reality. Jack's deal with Pete from Cincinnati is based on a 30% down payment and there could be some major problems dow
The bursting of the dotcom bubble in the year 2001 was a defining moment in the global web industry. People believed that the web had been given far more significance than it merited, not withstanding that initial glitches are a common feature of all technological revolutions. The shakeouts in fact mark the beginning of new and innovative technology ready to replace the old and the redundant.The concept of "Web 2.0" thus began with a conference brainstorming session between O'Reilly and MediaLive International. Dale Dougherty, web pioneer and O'Reilly VP, believed that the web has not lost any importance; in fact with new and excitin
When you own a business and have fought the battle over the years, the time does come when you're ready to cash in the business and turn it over to someone else. You've built your dream, watched it grow and it has taken good care of you. Finally you've talked to your family, your CPA and your attorney and decide to do it. You place your business on the market! About a year and a half later, after negotiating with two individual buyers and two corporations, you do the deal with “Pete,” the nice guy from Cincinnati. Pete seems to be a good person, has a nice family and the proper background for the business. You've structured the deal with a good down payment and have agreed to finance the balance with interest over a seven year period. Sweet deal, right? Well, maybe.
After working with hundreds of business owners over twenty plus years and hearing all their stories, one precaution comes shining through the excitement of a sale! If owner financing is going to be a part of the deal . . . be very careful! It might come back to sting you. Especially if you plan to retire after the sale.
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in town, their condo at the beach . . . and the note on the business real estate was paid off two years ago. So now with the business sold they can settle back, take it easy and enjoy their grandchildren.
A beautiful picture but let's look at reality. Jack's deal with Pete from Cincinnati is based on a 30% down payment and there could be some major problems do
Last year the show was an absolute success. There was representation of brands from all over the globe. Every year the expo receives thousands of buyers and sellers from all over the world. An interesting fact about the show, almost 50% of all exhibitors are foreign.It is expected that this year over 60% of all visitors will come to the show looking to fulfill their food service needs, searching for everything from equipment to the basic ingredients. I am sure this year's visitors will be very pleased. This expo is bringing many buyers. You will find products from both the food and beverage sectors and with products from all over the
After working with hundreds of business owners over twenty plus years and hearing all their stories, one precaution comes shining through the excitement of a sale! If owner financing is going to be a part of the deal . . . be very careful! It might come back to sting you. Especially if you plan to retire after the sale.
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in town, their condo at the beach . . . and the note on the business real estate was paid off two years ago. So now with the business sold they can settle back, take it easy and enjoy their grandchildren.
A beautiful picture but let's look at reality. Jack's deal with Pete from Cincinnati is based on a 30% down payment and there could be some major problems do
If you decide you’d like to reduce your tax burden, protect your assets, simplify your company operations or enter into cross border business transactions for example, and you’re interested in whether an offshore company structure could help with any or all of the above, chances are it could.There are many ways you can use an offshore company, many benefits you can derive from the use of one and many locations in which you can set one up…so how can you decide whether such a structure is applicable to you and how on earth should you decide where to incorporate an offshore company?What to Use an Offshore Company For
Typical “Sell The Business Scenario”
Here's why. Take the case of an owner we'll call Jack Stokes. Jack had his tire business for almost 30 years. He and his wife are in their 60's and both are in good health. They have two sons and a daughter that are grown and gone. The daughter teaches, the older son is an attorney in a nearby town and the younger son is finishing up his accounting degree. He wants to be a CPA with his own practice. None of his kids want anything to do with tires or the business. Selling tires isn't easy. The kids grew up in the business and their “big plan” was to go to school, get a degree and go their own way. And so it is. But the business has been good for the Stokes. It paid for their house in town, their condo at the beach . . . and the note on the business real estate was paid off two years ago. So now with the business sold they can settle back, take it easy and enjoy their grandchildren.
A beautiful picture but let's look at reality. Jack's deal with Pete from Cincinnati is based on a 30% down payment and there could be some major problems do
Are you TIRED of Setting GOALS and NOT achieving them?You are not alone! In fact, only 5% of the population even has goals and fewer than that actually put pen to paper and write them down! So, kudos to you for even having the guts to write them in your journal!My intention is NOT to get caught up in explaining the ‘why’ or the psychology behind people not following through with achieving their goals. However, my intention is to preface the following steps to obtaining your dreams and possibly DOUBLING your income.The fact is most people sabotage themselves! “Crazy,” you yell! But, it is TRUE. Am I saying that most peop
A beautiful picture but let's look at reality. Jack's deal with Pete from Cincinnati is based on a 30% down payment and there could be some major problems down the road. Let's see why.
Details Of The Deal
After lengthy negotiating, the final price for the business was $380,000. The price included the building and land, shop and office equipment, all 4 vehicles and the complete inventory. Pete will provide a down payment of $125,000, leaving a balance to be financed (by owner Jack) over seven years at 10% interest. The owner was not looking for an “all cash” deal in view of tax implications. After calculating the finance balance of $255,000, the monthly payment for the new owner comes to $4,233. And that monthly payment doesn't seem that bad since tire sales and shop service have been steady and growing.
How Sellers Get Hurt
But . . . what if something goes amiss, say, 2 _ years into the payback period of the seller's loan? Like an economic or regional downturn, or losing one or more of the business's name brand tire lines, or one or two key shop people? These are problems that can have a direct bearing on cash flow and the ability of the new owner to service the debt. And if after several months of missing some or all of the loan payments and the loan goes into default, guess what? The original owner, Jack, may get the business back. And Jack most likely will not want it back for various reasons. Legally, the original owner will retain title on the business and assets until the balance to be paid has been satisfied. But from the time the new owner took over, the inventory may be depleted, the shop equipment abused, some of the employees may have left and the bank account emptied. Who would want it back!
When Owner Financing - Be Wary
So what is the admonition or lesson here? If you plan to provide the financing when selling your business, proceed with extreme caution. Before entering into any purchase or buy/sell agreement, its best to break down the price of the business into several scenarios of down payment and the amount to be financed, so you can take an advance look at what the typical monthly payment may be for the new owner. As a general rule, the larger the down payment, the lower the risk of downstream payment problems. And during the “high anxiety” period of ownership transfer, knowing the debt servi
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