|
|
| www.1001TopWords.com |
|
|
Attributes Of Companies You Don?t Want To Buy!
There are no "rules of thumb" in the pursuit of companies tobuy. Each purchase opportunity has to stand on its own merits.There are, however, attributes of acquisition candidates thatneed to be defined for what they really are before additional,limited resources are put at risk in a potential deal. It isabsolutely critical for any proactive business buyer tounderstand, consider and deal with specific businesscharacteristics that add unnecessary financial risk to theinvestment opportunity at hand. The purpose of this article is to highlight characteristics ofacquisition candidates that you should consider absolute "dealkillers". These are brought to your attention because it isvery common and natural to get so far down the due diligencetrail on a company you have worked so hard to find, that ISfor sale, that is right in your industry "comfort zone" andnot see the inevitable financial disaster looming down theroad because you became "blind" to what the future businesspotential will be, versus the potential of what you think itcould be! Buying Quality Businesses is a "Number's Game" There is a direct relationship between perceived value ofsomething that is in very limited supply and the time andeffort you have invested to find it. Quality businesses, withextraordinary growth potential, that are for sale, are likethe proverbial "Diamond in the rough" or "Needle in thehaystack" analogies ? it takes removal of tons of dirt andmounds of hay to find what you seek! In any proactive business acquisition pursuit, a seasonedbusiness buyer will tell you that finding viable companiesthat can be purchased for reasonable terms is a "number'sgame". Thousands of company candidates, that lead to hundredsof contacts, which lead to ten's of acquisition conversations,that hopefully lead to one company purchase! Going into any business acquisition effort, knowing what ittakes to find and eventually secure a business purchase dealhas a dramatic affect on the definition and your eventualallegiance to your business purchase criteria. If yourpurchase criteria are too "tight" and your commitment toorigid to that criteria, you may quickly feel you'll never findyour "ideal" company to buy! Absolutely, Unquestionably, No Brainer, "Deal Killers" Attempting to find and qualify businesses to buy is aniterative and complex process. Each opportunity eventuallystands on its own merits and purchase compromises will prevailbecause it is unrealistic to think you will find the exact,"perfect" acquisition opportunity. There are, however,business attributes, like these listed below, that are bestleft with the current company owners:
Assuming you have clearly defined and documented your criticalBusiness purchase criteria well in advance to starting yourbusiness acquisition program, you will often start tocompromise your purchase criteria as you continue to investmore time and money to find your "ideal" acquisitioncandidate. This is a "cardinal sin" in merger and acquisitionpursuits. Compromising your purchase criteria is naturaltendency, but ultimately a fatal mistake! The importance of defining, understanding and truly committingto your critical company attributes is most important duringthese frustrating times. The most effective business buyersare disciplined business buyers. They are those who candecisively deal with uncovered negative company attributes andimmediately move on to the next purchase opportunity About the Author:Mark Smock is President of http://www.business-buyer-directory.com,the FIRST international business buyer directory of its kind.Business Buyer Directory provides a non-traditional means forproactive business buyers to locate businesses for saleworldwide that meet their exact registered purchase criteria.
|
|
|
|
RELATED ARTICLES
Building A Business That Works For You Before you want to build your business, you need to know why you are in this business. Small Business Marketing: Specialize or Generalize? There have been many great points raised on both sides of this discussion. In order to make a final decision, we must look at how the business world is moving and at the purchasing patterns of the consumers who will be utilizing your services. How to Become Successful in the Field of Financial Consultants Financial Consultants are one of the fastest growing industries today. More and more people are requiring the services of a finance consultant to get out of debt, and/or prepare for educational and retirement expenses. The knowledge these consultants have creates an income potential for everyone involved. Small Business Server Business Tips Top 3 Ways to Maximize Your Small Business Server Consulting Profits Cost Effective Franchise Regulations, Come again The Franchise Group at the Federal Trade Commission in all their ego and glory has proclaimed that franchise disclosure laws are "Cost Effective." I hate to break it to the FTC, but your comments and court are completely naked. The folks at the FTC are wearing no clothes. In a recent franchise report put out by the commission they actually had the tenacity to say that these rules and regulations in the franchise law are cost effective. 11 Things Small Business Owners Can Learn From Rudolph The Red-Nosed Reindeer 1. Everyone Makes A Difference ? Despite not letting him play in their games, the other reindeer came to understand Rudolph's importance. Look for the talents in each of your employees. Franchisor Prospect Checklist Sample Form Due to the over regulation in the Franchising Industry and the litigation it is important to keep impeccable records. From the first phone call, email to the signing of the franchise agreement everything should be documented. Below is a checklist we created for our franchise company and one I wish you would consider when creating your own. I recommend you copy this article and then modify it to fit your business model. Getting City Contracts; Local Government Contracting All cities have a purchasing office and/or a procurement officer. They handle all city contracts that are sent out to bid. Usually, to become a small business vendor of the city you must satisfy either some or all of the requirements listed below: Virtual Assistance for Healthcare Professionals Administrative and clerical tasks are the bane of every industry. No matter how small or large your business is, you will eventually find yourself with stacks of paperwork that need your attention and phone calls that need to be made. And when will you find the time? If you are busy seeing your clients during the day, then the paperwork waits until the evenings and weekends. This can make for some very long days and total exhaustion. Hiring a virtual assistant is becoming the best option for many professionals. Preparing to Launch Your Small Business Small business owners often enter their field with great expectations. Unfortunately, reality strikes shortly afterwards. Here's how you can enter the entrepreneurial battle ground with confidence... Is Brick and Mortar A Passing Fad? Q: Is the online world the best place to sell a product or service these days? My friends seem to think that brick and mortar stores will totally disappear in the future. I debate this all the time with them, but it seems to be heading that way. Your thoughts?- Alex H. Avoiding the Small Business Cash Flow Roller Coaster A solopreneur I know disappears from my radar screen for weeks on end when she's actively engaged on a project for a client. During this time she is heads down, totally focused, and immersed in delivering her service to her current client. She works long hours each week, sacrificing her personal life, relationships, and self-care to meet her commitments to her client. Home Based Franchise; What About Future Expansion? As a franchisor I am always asked by new and existing franchisees about future expansion. I find this to be a most wonderful question because I admire the strength of today's entrepreneur. With all and over regulation we still see hard chargers willing to battle the Tsunami of laws, rules and regulations as the debris rushes ashore. Indeed, with the Hurricane of lawyers presently in practice and Earthquake stampeding new attorneys getting out of law school, it is amazing the new warriors of free enterprise still press. Yes, in fact the modern entrepreneur has more floating and flying debris then ever before in our nations history. The of course want to shoot all the lawyers and regulators who have never made an honest dollar in their entire lives, yet no one has that much ammo and it is time consuming to run down all the much mold and slime. Collect that Debt - Your Business Depends on it The efficiency of debt collection is the difference between a business that will succeed and a business that closes up. If You Want Business - Be Consistent Why does consistency in the message have an effect on how the business relationship is formed? Why the Over Regulation on the Franchising Model? Franchising is the fastest way to build small businesses, provide jobs, create money flows. Currently the Federal Trade Commission wishes to increase the over regulation on the franchising sector. The way the Federal Trade Commission conducts itself provides little incentive or allows few new entrepreneurial companies to merge from the ashes to become the next Wendy's Hamburger, McDonalds, Duncan Donuts, Century 21, KFC, Dominos Pizza, Midas Muffler, etc. Why? What are we really saying here? More complicated laws slows progress of the species, to move commerce forward. Basic Psychology of Franchisee Ownership and Expansion If you are a franchisee of a large franchise system; before you expand your franchise to include more stores there are some questions you might ask yourself. If, however, you bought your franchise to expand, grow and amass a small empire of your own, your franchisor will be the last person to stand in your way. Franchisors applaud those who are true entrepreneurs and believe in no limits. Your Franchisor will help you achieve your goals, even if they have to be the ones who push you over the top. No matter what your objectives are; for instance; To have a good paying job, more freedom, become rich or build a small empire; your franchisor is there for you in heart and soul. You must choose your destiny, keep them informed every step of the way and remember, the sky is not the limit, the ground is! Starting is the Hardest Part You can't imagine how many people ask me how I did it. To turn my back onto convention, to turn a deaf ear on the people who wants what is best for me, to snub my nose at people who thinks I am making one of the biggest mistakes in my life?etc. Hey, this is what I do best, so, I am really good at this. Granted, not everyone is as good at defying convention (and logic) as me, so, I'll keep that in mind. :-) Work is a Four Letter Word I love work, I can watch it all day. Yeah, It IS Lonely At the Top Sometimes when you run a business you feel as lonely as the Maytag repairman. Loneliness and isolation are very common problems for business owners. You sit at your desk wondering if you are steering your business in the right direction. When faced with a decision, you worry that you may be making a mistake or missing an opportunity. You get frustrated because you have no one to talk to about all the problems and decisions you have to make everyday. When you have a confidential matter you can't discuss with employees, family members, or friends you suffer in silence because you don't have an advisor to turn to. And unless your spouse is an MBA, he or she probably doesn't have the answers you need either.
|
| © Athifea Distribution LLC - 2013 |
