Selling a business is a little bit like an elimination-round tennis tournament. A lot of people make it to the tournament, but as you advance from one round to the next, the challenges get tougher, and at each stage, a lot of good players get eliminated.
June 7, 2010
This article gives a brief description of a dozen common solutions for middle-market financing, including revolving credit, factoring, sale-leaseback arrangements, and more. I recommend it as a good starting point to evaluate the options for a small or middle-market business that needs cash (and can't wait). It also points out the potential drawbacks of each option.
June 1, 2010
(Artlicle published by Feeley & Driscoll). In measuring your financial strength by comparing it to past company performance and industry averages, your management team will gain insight into which goals the company has achieved and where it’s fallen short, with tangible ratios for reference.
May 28, 2010
The U.S. House of Representatives has just begun floor debate on a proposal to tax the "carried interest" of private equity and venture capital firms as ordinary income rather than capital gains. Link here to article by Dan Primack of peHUB.
May 27, 2010
For most banks and finance companies with more than $1 billion in assets, commercial lending is typically segmented into Large Corporate, Middle Market, and Business Banking. “Middle Market” and these other segments are generally understood to describe a type of borrower, whereas “ABL” (asset based lending) refers to a type of loan.
May 18, 2010
The first question most business owners ask when we meet with them is: “So what’s my business worth?” This article from Mirus Capital Advisors helps answer this question by explaining some of the core valuation tools and vocabulary, and by describing the approaches used to estimate a valuation range for a specific business.
May 17, 2010
Congress passed a farm bill in 2002 that included an authorization to license Rural Business Investment Companies (RBICs). RBICs are modeled after SBICs, which are licensed by the Small Business Administration. However, due to relatively strict guidelines on how and where RBICs can invest, only one firm has so far been licensed. As a result, if your business isn't located in the southeast, then this program will be of little use to you in 2010.
May 14, 2010
At the height of the mortgage boom, Wall Street bankers bundled together packages of loans that were sold to investors as CDOs which were highly-rated and supposedly "safe". Not only did some major investors and Wall Street bankers know these CDOs were junk, they intentionally made some CDOs even more risky, so they could in turn bet the investments would fail.
May 11, 2010
You only get one chance to make a first impression, so don’t make the mistake of providing a potential buyer with information about your business until you have (at least) taken this self-assessment to determine whether or not you need professional help…
May 7, 2010
Most business loan applications are denied. Not coincidentally, most loan applications are poorly written. More often than not, they fail to demonstrate an appreciation for what the lender needs to know. They focus on the sizzle rather than the steak. Banks are not risk takers.
August 19, 2010
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