One of the keys to success is to surround yourself with smart people. Although I am not saying that I am successful, our firm has been in existence for over thirty-eight years and I have been blessed to have many great and talented team members. I mention this because one of my current team members, Scott Densmore, authored this month’s feature article and I encourage you to play the accompanying video. Concentration Concentration is not always about mental focus. Here, we are referring to Customer Concentration, Product Concentration, and Supplier Concentration. The higher the concentration, the higher the risk there
If you would have asked me to write an article about this topic six months ago, I would have suggested that perhaps you had consumed too many adult beverages. But now that we have lived, albeit reluctantly, with COVID-19 for several months, we have some experiences that we can share. First and foremost, good, profitable, and growing businesses are still in demand. And because there are fewer of them, they command significant attention, and in several cases multiple offers. Below are some suggestions for completing a transaction in the current environment. Several of them also apply under normal business conditions.
Rob Amerine covers what he terms a business “shakeup” in the times of COVID and making sure your business processes are in order before a sale.
In an attempt to stimulate the small business economy, the Federal Government initiated a number of programs under the CARES Act. Most notable are the Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL). There are also numerous other provisions relating to direct payments, retirement account loans and distributions, and payroll tax deferrals. One benefit that has not received as much publicity, probably because it applies to fewer parties, is the forgiveness of six months of SBA loan payments (covering both principle and interest) for buyers of businesses that close on a transaction and get their loan fully-funded prior
Even during these financially uncertain times, businesses are being bought and sold. As you would expect, the better managed and performing businesses are attracting more attention and commanding higher prices. Below are several suggestions that you, as a business owner, can implement in order to make your business more marketable and valuable, either now or when you decide to go to market. Team of Employees Start with your team. Do you have the right people in the right positions to navigate the current environment? If not, you may find that the high unemployment rate has created a pool of talent
Now that we have been living with COVID-19 and its social and economic ramifications for approximately two months, it appears that we, as an economy, are starting to adjust and get back to business, albeit, somewhat differently. For those of you who lost a loved one or friend, we extend our condolences and understand that the health danger is not over and there will be more casualties from the virus. There will also be businesses that have been mandated to close that will not have the capital to reopen and businesses that reopen that will not have the capital to
Although I have been selling businesses in Colorado for over thirty years, and have seen many disruptions of the business cycle caused by events such as war, bubbles, and recessions of various magnitudes, the current economic environment has characteristics that are different than the others. Prior to the mandatory stay at home order from Colorado’s Governor Polis, the economy was operating at close to capacity and our firm had several transactions in process. It appears that most buyers, sellers, and lenders want to continue to work together to complete those transactions. As you would anticipate, we are involved with robust
Ted Robertson, Host, KRDO’s Business Connection: Welcome to KRDO’s Business Connection. I’m your host, Ted Robertson. Joining me this morning is Mr. Rob Amerine of The FBB Group. And The FBB Group is all about selling businesses, or a business brokerage. Is that… am I on point there, Rob? Rob Amerine, CBI and Broker Associate, The FBB Group: Yeah. Ted, thanks for having me. We were established in 1982, so we’ve been here through thick and thin, and we basically work with sellers to sell their businesses. We work with many buyers, as you can imagine. And I myself have
As a member of several M&A industry associations, our firm receives a fair amount of industry information relating to transaction data. This month’s article, which was compiled by Scott Densmore, one of our experienced Brokers, highlights some of the 2019 Q4 information, as reported in the Fourth Quarter 2019 Market Pulse Survey. Below are two significant items of interest: It is still a Sellers’ Market in most segments. The recent lowering of interest rates may prompt some buyers to take advantage of the lower rates to capture higher a cash flow and obtain better rates of return on their investment.