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Thursday
12Nov2009

Selling a Business - Timing

DateThursday, November 12, 2009 at 10:15AM

Sometimes in life you have to do the inevitable and that includes selling your business.  In most cases there are signs that tell you it's time to sell your business.  This article will give you tips if it's time to put your business up for sale.

Time is of the essence

Running a business is a risk and sometimes to reduce the overall risk involved it's best to jump ship with a sale of the ship.  In most cases it is obvious pain points that speak volumes and tells you it is time to sell your business, but often goes ignored.  Analyzing your own business you should know if it is time to sell or if you have a fighting chance with your business.

Selling a business is never easy.  You should never go into a deal head first, before you sell your business always have your business lawyer present and always have them okay any papers which require your signature.  You should sell your business as you would a piece of real estate, put it on the market above your asking price and negotiate down to a fair price or your original asking price.  When it is time to sell your business then be sure you list out the positives.

From BizLinkIn.com: 10 Ways to Know It's Time to Sell Your Business

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Tuesday
03Nov2009

Capital Gains Tax Changes

DateTuesday, November 3, 2009 at 5:42AM

The March Group, a private mergers and acquisitions firm specializing in the sale of middle-market companies, is advising business owners to sell their companies to do so before 2011, when capital gains taxes will take a steep rise.

 Effective from January 1st, 2011, capital gains taxes on the sale of assets held longer than a year - and this includes a business - will increase from the current 15 percent rate to 20 percent for most taxpayers, according to the nonpartisan Tax Foundation.

Tax rules are changing

Rates will go up because a key piece of legislation - the Tax Increase Prevention and Reconciliation Act of 2006 (TIPRA) - will expire at the end of 2010. TIPRA extended tax breaks that were granted in the Jobs and Growth Tax Relief and Reconciliation Act of 2003 (JGTRRA), which lowered capital gains taxes to 15 percent for higher income taxpayers through 2008.

Business owners who sell their companies after December 31st, 2010, will pay 33 percent more in capital gains taxes (20 percent versus 15 percent) than those who sell before January 1st, 2011.

The March Group`s Sr. Vice President Mark Schwass advises, "Because it can take months, even a year or longer, to find a buyer and complete an acquisition, we're encouraging business owners to begin the selling process now, if the internal conditions of the business merit," He added, "The sooner your company is put on the market, the sooner the value of your business can be assessed, the sooner the right buyer can be found for your business, and the sooner you can begin negotiating for a mutually acceptable price."

View the March Group's businesses for sale on BusinessesForSale.com

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AuthorBusinessesForSale.com Staff | Comment1 Comment |
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Thursday
29Oct2009

Business Valuation - Young Companies

DateThursday, October 29, 2009 at 5:55AM

From Forbes: How to Value a Young Company

Say you're lucky enough to find a willing investor in your young company. At some point (sooner rather than later), the guy will want to know: "How much do I have to pay for a slice of the pie--and how big a slice can I get?"

Placing a valuation on young companies is a tricky, subjective game, but it's one small-business owners have to know how to play, especially when investment capital remains stubbornly scarce. Quote too low a figure, and you'll give away the store; shoot too high, and the investor may blanch at your grasp of the underlying economics of the business.

Here are three techniques, some broken into parts, to help you put a value on your company. Your best bet is an amalgam of all of them. When it comes to impressing investors, the more ways you can speak their language, the better.

Technique No. 1: Asset Valuation

Of all valuation approaches, the asset approach--placing dollar values on all the assets on a company's balance sheet and adding them up--is the most concrete.

Start with physical assets, including machinery, office furniture, computers, inventory, prototypes (and the cost to develop them). Young companies tend not to have much in the way of physical assets, but add up what you do have.

Read the full article at Forbes

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Thursday
22Oct2009

How Much is my Business Worth?

DateThursday, October 22, 2009 at 10:43AM

The California Association of Business Brokers (CABB- a non profit trade organization) says if a small business owner is looking to sell their business but is waiting for the economy to turn around, use this time to start preparing. One of the most vital steps in this process is to understand what the business is worth.

Ron Hottes, president of CABB and of several Business Team Business Brokerages says that a business broker’s opinion of value can provide small business owners with an objective view of what a business is worth and is an important piece in determining the asking price. “A business broker’s opinion of value gives you a realistic starting point to work from and can give small business owners direction when determining the right time to sell.”

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AuthorBusinessesForSale.com Staff | Comment3 Comments |
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Thursday
15Oct2009

Selling a Military Defense Business

DateThursday, October 15, 2009 at 11:37AM

With the United States fighting two wars simultaneously and continuing to improve homeland security, defense-related products and services are in high demand. The U.S is the principal determinant of the current world trend, as its military expenditure now accounts for just under half of the world total (41.5 percent).

Says CEO/President of The March Group Bob Scarlata, "Based on the defense-related deals we have active right now, we are seeing significant and solid interest from defense-related buyers - both strategic and financial. Essentially, any company involved in any way with defense - either military or homeland defense - is hot property right now.”

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