The Importance of Understanding Leases
Leases should never be overlooked when it comes to buying or selling a business. After all, where your business is located and how long you can stay at that location plays a key role in the overall health of your business. It is easy to get lost with “larger” issues when buying or selling a business. But in terms of stability, few factors rank as high as that of a lease. Let’s explore some...Read MoreValuations Change. What Should You Do?
Valuation changes over time. Yet this simple enough fact is widely forgotten or even ignored. In Chris Mercer’s insightful article, “A Problem: Fixed Price Buy-Sell Agreements,” Mercer explores the complexities of the fixed price buy-sell agreement. At the core of the problem is the fact that, as Mercer points out, “time passes and value changes.” With the passing of time values invariably...Read More
Day One is the Day to Prepare Your Exit
Pepperjam CTO, Greg Shepard recently published “Planning Your Exit Should Begin When You Launch” in Entrepreneur magazine. In this article, Shepard puts forward a variety of thought-provoking ideas including that entrepreneurs should be thinking about partnering early on with those they believe will ultimately want to buy their business. Thinking Ahead Much of Shepard’s thinking centers...Read More
What Makes the Sale of a Business Fall Through?
There are a myriad of reasons why the sale of a business doesn’t close successfully; these multiple causes can, however, be broken down into four categories: those caused by the seller, those caused by the buyer, those that just happen (“acts of fate”), and those caused by third parties. The following examines the part each of these components can play in contributing to the...Read More