Actual for You - Business

Can You Hear Me Now
I’m not really that old. At 54, I am surely not old enough to remember communicating by smoke signals or drums. But I am old enough that while working for a huge engineering company, I was trained as a back-up for the regular telephone operator, and that meant learning how to operate the old cord switchboard. When Centrex telep

r interested buyers.

Window Cleaning Tip- It's Window Cleaning, NOT Window Washing
Whether you already own a window cleaning company or you are looking at starting your own window cleaning business. One of the first things you need to get squared away in your head is that you are a ‘window cleaner’ and in the window ‘cleaning’ business, NOT a window washer in the window washing business. You may think that the

The letter of intent is an essential step in facilitating the sale of a business. The purpose is to establish the economic framework for buyer and business seller to move to the due diligence phase. It basically says that with all the available information I have thus far seen and if that all stands the scrutiny of due diligence, I am willing to buy your business for X dollars under Y payment terms. It is however, non- binding pending the execution of mutually acceptable purchase agreements.

If I am a seller, I am going to insist that I have this letter establishing the economics of the deal before I agree to allow my company to be turned inside out with buyer staff and advisors. If, as the seller, I want $5 million and the LOI specifies $4.5 million, I am going to attempt to negotiate up before I counter sign this letter. If I am still short on price and terms, I continue to sell the company to other interested buyers.

The Go Zone and Great Investing Opportunities
The gulf coast was pounded two years ago with Hurricanes Katrina and Rita respectively. Many people lost their homes and everything they owned in those homes. The damage was so bad that the President declared areas hit hardest by the storm as Disaster Areas. Because of this declaration and the complete devastation in some areas o

the available information I have thus far seen and if that all stands the scrutiny of due diligence, I am willing to buy your business for X dollars under Y payment terms. It is however, non- binding pending the execution of mutually acceptable purchase agreements.

How to Collect Your Past Due Accounts Receivable
If you are like many small businesses, even a few late payments on your accounts receivable can seriously crimp your cash flow. It is vitally important that you take immediate and systematic steps to limit the number of past due receivables that you have at any time. The number one strategy is to have a system in place that lim

ally acceptable purchase agreements.

Enron Trial; New Developments
In watching the Enron trial it appears to me that these gentlemen are going to get office Scott Free. Why is it that our government is spending $200 million of taxpayers money all of this trial? Why not just give that $200 million back to those who lost all their pension when Enron closed their doors?It seems as if the go

ors. If, as the seller, I want $5 million and the LOI specifies $4.5 million, I am going to attempt to negotiate up before I counter sign this letter. If I am still short on price and terms, I continue to sell the company to other interested buyers.

Corporate Gifts
If communication is perceived to be the basic step towards achieving self-actualization, the act of rewarding - a sign of mutual recognition - is considered to be an essential way to motivate individuals to realize their potential and turn them self-transcendent. There are different ways and means to express one’s gratitude towar

r interested buyers.

If I am the buyer, I want the seller to commit to my economic parameters before I spend thousands going through due diligence. The other important element of the LOI from the buyer’s perspective is exclusivity. The buyer will lock up this company for a period of from 30 days to 90 days to complete their due diligence and execute mutually agreeable definitive purchase agreements. That means that in return for the time, effort and expense of due diligence, the seller and his business broker or merger and acquisition advisor are not allowed to actively market the business to other interested parties.

If you are the seller and you get your LOI, don’t celebrate yet. Make sure the financials that the buyer is analyzing to come up with his offer are professionally done using GAAP. Normally a measuring point is established in the LOI with those financials for net working capital. There will be an adjustment made to the transaction value (post closing adjustments) depending on the new net working capital balance post close.

If the buyer is looking at sales forecasts prior to submitting his LOI, make s

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I've spent the past couple of weeks building a shed in my back garden. Already I hear you ask, what does that have to do with business? As I was building the shed, I realized how similar it was to building a business. Wait, and I'll explain more.

Why have a dog and bark yourself? Why have an accountant and then worry about depreciation models? Just like you can't ignore Sales or Marketing, you ignore Accounting at your peril!

Many companies and contractors in need of acquiring new or used construction equipment often don't have the financial resources needed to buy the construction equipment outright, unless it is a large corporation or some branch of the government. This is when the option of renting or leasing construction equipment comes into play.

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Actual for You - Understanding the Letter of Intent (LOI) in the Sale of a Business

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