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Actual for You - Attributes of Companies You Don't Want to Buy!
As you may have heard, NASA and Google have just announced a partnership of sorts. While it seems like an information sharing agreement, a close reading reveals some rather startling things.Google to Dominate Entire Physical Universe?At its core, Google is a search engine. While this is obvious, people sometimes forget it given all the interesting gadgets Google Labs kicks out. Regardless of how you define it, Google typically has at least been restricted to being classified as no broader than an information technology company. It would appear Google has much bigger plans.With more than a bit of hype, Google and NASA have announced they are teaming up. In revi
• A viable competitor offers ALL the products and services your customers need
• There is no customer purchase loyalty
• The overall demographics of your targeted market(s) are negative
• Extraordinary product/ service warranties are firmly established within the industry
• The product must be manufactured overseas to effectively compete
• Targeted, primary markets have had no growth the last three years
• There is existing or pending, noteworthy legal encumbrances against the company
• You determine the current business owner lies to you about “small” details
Assuming you have clearly defined and documented your critical Business purchase criteria well in advance to starting your business acquisition program, you will often start to compromise your purchase criteria as you continue to invest more time and money
Not being an inherently organized person, I have learned several ways to help overcome my tendencies of disorder. In this article, I share a few of these tips.Even though I am not convinced that we will ever become a paperless economy, I do love the advantage of being able to set up files and folders on my computer. Do take the time to create a system of filing. When I first started getting into technology, my system (not a system at all) was haphazard, so I had a terrible time finding what I was looking for. In the beginning, you might even want to make a chart or a map of where you are placing important information.I also love the great colored pla
The purpose of this article is to highlight characteristics of acquisition candidates that you should consider absolute “deal killers”. These are brought to your attention because it is very common and natural to get so far down the due diligence trail on a company you have worked so hard to find, that IS for sale, that is right in your industry “comfort zone” and not see the inevitable financial disaster looming down the road because you became “blind” to what the future business potential will be, versus the potential of what you think it could be!
Buying Quality Businesses is a “Number’s Game”
There is a direct relationship between perceived value of something that is in very limited supply and the time and effort you have invested to find it. Quality businesses, with extraordinary growth potential, that are for sale, are like the proverbial “Diamond in the rough” or “Needle in the haystack” analogies … it takes removal of tons of dirt and mounds of hay to find what you seek!
In any proactive business acquisition pursuit, a seasoned business buyer will tell you that finding viable companies that can be purchased for reasonable terms is a “number’s game”. Thousands of company candidates, that lead to hundreds of contacts, which lead to ten’s of acquisition conversations, that hopefully lead to one company purchase!
Going into any business acquisition effort, knowing what it takes to find and eventually secure a business purchase deal has a dramatic affect on the definition and your eventual allegiance to your business purchase criteria. If your purchase criteria are too “tight” and your commitment too rigid to that criteria, you may quickly feel you’ll never find your “ideal” company to buy!
Absolutely, Unquestionably, No Brainer, “Deal Killers”
Attempting to find and qualify businesses to buy is an iterative and complex process. Each opportunity eventually stands on its own merits and purchase compromises will prevail because it is unrealistic to think you will find the exact, “perfect” acquisition opportunity. There are, however, business attributes, like these listed below, that are best left with the current company owners:
• The sellers have previously terminated two or more purchase contracts
• The current business owners have no clear, compelling reason to sell
• The sellers cannot provide basic financial information
• The business is completely dependent on one key employee
• The seller will not provide any form of “earn-out” based on future company performance
• The business relies on limited natural resources to produce its product or service
• Improper application of the company’s product/ service = major $ liability
• The company has not been profitable for the last 3 years
• Pending significant legislation possibly impairs future growth
• Key personnel will not sign employment contracts or non- compete’s
• Payment on acquisition debt exceeds 50% of after-tax profits
• There is an insufficient pool of labor or talent to grow the business
• There is no technical or knowledge barrier to entry for the targeted business niche
• Key patents are about to expire
• Only one supplier can provide a key product/ service ingredient
• One customer equals greater than 20% of total annual sales revenues
• A viable competitor offers ALL the products and services your customers need
• There is no customer purchase loyalty
• The overall demographics of your targeted market(s) are negative
• Extraordinary product/ service warranties are firmly established within the industry
• The product must be manufactured overseas to effectively compete
• Targeted, primary markets have had no growth the last three years
• There is existing or pending, noteworthy legal encumbrances against the company
• You determine the current business owner lies to you about “small” details
Assuming you have clearly defined and documented your critical Business purchase criteria well in advance to starting your business acquisition program, you will often start to compromise your purchase criteria as you continue to invest more time and money t
Apparently, there are all sorts of reasons to be dissatisfied with your job...Statistically, studies have shown that:-Lack of career advancement -Lack of training -Lack of direction from supervisors -A challenging economy -Lack of support from employers (CareerBuilder.com)Some of mine included:-Feeling under valued -Feeling like a cog in the wheel -Feeling like I had my hands tied when trying to manage -Feeling out of balance -Feeling out of integrity with my company’s philosophiesI’m sure you could add a few of your own as well.Years of working with clients to permanently put an end to their jo
Buying Quality Businesses is a “Number’s Game”
There is a direct relationship between perceived value of something that is in very limited supply and the time and effort you have invested to find it. Quality businesses, with extraordinary growth potential, that are for sale, are like the proverbial “Diamond in the rough” or “Needle in the haystack” analogies … it takes removal of tons of dirt and mounds of hay to find what you seek!
In any proactive business acquisition pursuit, a seasoned business buyer will tell you that finding viable companies that can be purchased for reasonable terms is a “number’s game”. Thousands of company candidates, that lead to hundreds of contacts, which lead to ten’s of acquisition conversations, that hopefully lead to one company purchase!
Going into any business acquisition effort, knowing what it takes to find and eventually secure a business purchase deal has a dramatic affect on the definition and your eventual allegiance to your business purchase criteria. If your purchase criteria are too “tight” and your commitment too rigid to that criteria, you may quickly feel you’ll never find your “ideal” company to buy!
Absolutely, Unquestionably, No Brainer, “Deal Killers”
Attempting to find and qualify businesses to buy is an iterative and complex process. Each opportunity eventually stands on its own merits and purchase compromises will prevail because it is unrealistic to think you will find the exact, “perfect” acquisition opportunity. There are, however, business attributes, like these listed below, that are best left with the current company owners:
• The sellers have previously terminated two or more purchase contracts
• The current business owners have no clear, compelling reason to sell
• The sellers cannot provide basic financial information
• The business is completely dependent on one key employee
• The seller will not provide any form of “earn-out” based on future company performance
• The business relies on limited natural resources to produce its product or service
• Improper application of the company’s product/ service = major $ liability
• The company has not been profitable for the last 3 years
• Pending significant legislation possibly impairs future growth
• Key personnel will not sign employment contracts or non- compete’s
• Payment on acquisition debt exceeds 50% of after-tax profits
• There is an insufficient pool of labor or talent to grow the business
• There is no technical or knowledge barrier to entry for the targeted business niche
• Key patents are about to expire
• Only one supplier can provide a key product/ service ingredient
• One customer equals greater than 20% of total annual sales revenues
• A viable competitor offers ALL the products and services your customers need
• There is no customer purchase loyalty
• The overall demographics of your targeted market(s) are negative
• Extraordinary product/ service warranties are firmly established within the industry
• The product must be manufactured overseas to effectively compete
• Targeted, primary markets have had no growth the last three years
• There is existing or pending, noteworthy legal encumbrances against the company
• You determine the current business owner lies to you about “small” details
Assuming you have clearly defined and documented your critical Business purchase criteria well in advance to starting your business acquisition program, you will often start to compromise your purchase criteria as you continue to invest more time and money
Recently, I’ve written some articles blasting customer service units that don’t provide service.I chronicle how I haven’t been able to get a capable service technician out to repair a brand new clothes dryer, and we’re going on three weeks, two missed appointments, and about eight loads of laundry that had to be transported and then retrieved several miles away, just so I could use them.I mentioned that there are ten major LIES that service folks tell, ranging from “Your call is important to us,” to “I’m the supervisor.”I earn a living training service folks and their managers to be better in their occupations, so you might expect me to not bite the hand that
Absolutely, Unquestionably, No Brainer, “Deal Killers”
Attempting to find and qualify businesses to buy is an iterative and complex process. Each opportunity eventually stands on its own merits and purchase compromises will prevail because it is unrealistic to think you will find the exact, “perfect” acquisition opportunity. There are, however, business attributes, like these listed below, that are best left with the current company owners:
• The sellers have previously terminated two or more purchase contracts
• The current business owners have no clear, compelling reason to sell
• The sellers cannot provide basic financial information
• The business is completely dependent on one key employee
• The seller will not provide any form of “earn-out” based on future company performance
• The business relies on limited natural resources to produce its product or service
• Improper application of the company’s product/ service = major $ liability
• The company has not been profitable for the last 3 years
• Pending significant legislation possibly impairs future growth
• Key personnel will not sign employment contracts or non- compete’s
• Payment on acquisition debt exceeds 50% of after-tax profits
• There is an insufficient pool of labor or talent to grow the business
• There is no technical or knowledge barrier to entry for the targeted business niche
• Key patents are about to expire
• Only one supplier can provide a key product/ service ingredient
• One customer equals greater than 20% of total annual sales revenues
• A viable competitor offers ALL the products and services your customers need
• There is no customer purchase loyalty
• The overall demographics of your targeted market(s) are negative
• Extraordinary product/ service warranties are firmly established within the industry
• The product must be manufactured overseas to effectively compete
• Targeted, primary markets have had no growth the last three years
• There is existing or pending, noteworthy legal encumbrances against the company
• You determine the current business owner lies to you about “small” details
Assuming you have clearly defined and documented your critical Business purchase criteria well in advance to starting your business acquisition program, you will often start to compromise your purchase criteria as you continue to invest more time and money
The quality of a lead has been debated for years and will continue to be debated for the foreseeable future.Why?Because there is no standard definition for a quality lead. Advertisers and marketers typically try to define lead quality by asking questions like: Is a quality lead defined by conversion based on time? Is it based on Return on Investment (ROI)? These questions will continue to go unanswered because different businesses have different benchmarks when considering lead quality.Another prominent question is: Does lead quality diminish over time because of over-exposure?Again, there is no definitive answer, but I believe lead quality diminishes o
• The business is completely dependent on one key employee
• The seller will not provide any form of “earn-out” based on future company performance
• The business relies on limited natural resources to produce its product or service
• Improper application of the company’s product/ service = major $ liability
• The company has not been profitable for the last 3 years
• Pending significant legislation possibly impairs future growth
• Key personnel will not sign employment contracts or non- compete’s
• Payment on acquisition debt exceeds 50% of after-tax profits
• There is an insufficient pool of labor or talent to grow the business
• There is no technical or knowledge barrier to entry for the targeted business niche
• Key patents are about to expire
• Only one supplier can provide a key product/ service ingredient
• One customer equals greater than 20% of total annual sales revenues
• A viable competitor offers ALL the products and services your customers need
• There is no customer purchase loyalty
• The overall demographics of your targeted market(s) are negative
• Extraordinary product/ service warranties are firmly established within the industry
• The product must be manufactured overseas to effectively compete
• Targeted, primary markets have had no growth the last three years
• There is existing or pending, noteworthy legal encumbrances against the company
• You determine the current business owner lies to you about “small” details
Assuming you have clearly defined and documented your critical Business purchase criteria well in advance to starting your business acquisition program, you will often start to compromise your purchase criteria as you continue to invest more time and money
International Advertising is not easy and it gets a little tricky due all the many cultural differences and this of course makes a lot of sense, however when you couple that with the language translations well it can get rather tricky indeed, say the top University Professors teaching International Advertising. In fact there are numerous case studies and many dirty little secrets say Advertising Experts.One online advertising writer and experts reminds of a couple of really unfortunate instances; Clairol introduced the "Mist Stick", a curling iron, into German only to find out that "mist" is slang for manure. Not too many people had use for the "manure stick." Then a bottle
• A viable competitor offers ALL the products and services your customers need
• There is no customer purchase loyalty
• The overall demographics of your targeted market(s) are negative
• Extraordinary product/ service warranties are firmly established within the industry
• The product must be manufactured overseas to effectively compete
• Targeted, primary markets have had no growth the last three years
• There is existing or pending, noteworthy legal encumbrances against the company
• You determine the current business owner lies to you about “small” details
Assuming you have clearly defined and documented your critical Business purchase criteria well in advance to starting your business acquisition program, you will often start to compromise your purchase criteria as you continue to invest more time and money to find your “ideal” acquisition candidate. This is a “cardinal sin” in merger and acquisition pursuits. Compromising your purchase criteria is natural tendency, but ultimately a fatal mistake!
The importance of defining, understanding and truly committing to your critical company attributes is most important during these frustrating times. The most effective business buyers are disciplined business buyers. They are those who can decisively deal with uncovered negative company attributes and immediately move on to the next purchase opportunity.
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