Just Elementary, Inc. » Entries tagged with "sell"
Small Business Exit Strategy Planning
When you are ready to retire and run off into the sunset, your business will have three possible outcomes: Going out of business, transferring to heirs/employees, or being merged/sold to a buyer. Going out of business at best yields liquidation value for the business, which is usually pennies on the dollar. The upside to going out of business, is that you won’t incur any future liabilities in warranties, employer obligations etc. Though it isn’t much of … Read entire article »
Filed under: Selling A Business
Factors that Effect the Value of a Business
Factors Affecting the Value of a Business Lease & Occupancy Cost In the cases of businesses operating on a lease, the lease terms are key to affecting the contribution of value to the business. For retail business that are not footloose, a long term is key to positive value. For example, with a coin laundry, the lease needs to be typically, 20 years or more in length. Long term leases are important with most retail businesses. In … Read entire article »
Filed under: Business Tips, Business Valuation, Uncategorized
HOT or NOT? Buy Now Or Forever Hold Your Peace!
Well, it is not quite that simple. The most likely market trends for the next 3-5 years is FLAT. Hopefully not a Flat-Line. There are three kinds of markets I can think of, #1 HOT, #2 Imploding Crashing Markets and #3 the flat & boring market. So, probably not a good idea to buy while the markets are still crashing like Fine China falling from a Display Case. Also, it is a risky proposition to extend a lot of leverage in a hot market, lest your exit strategy be too long and you get stuck holding asset(s) into a Crashing market. Thus, if we are now finally into the beginning of the LONG, Flat and Boring Portion of the Market, then it is time to buy all the assets that you … Read entire article »
Filed under: Business Tips