Exit Planning

Business owners win when they leave their companies on their terms and on their schedules. The process owners use to achieve this victory is known as Exit Planning. In short, Exit Planning is the deliberate, adaptable, and customized process that a business owners use so that they can leave their businesses on their own terms and schedule. THERE IS A PROVEN step-by-step process that leads business owners to ultimate success — the profitable sale or transfer of their businesses. Thousands of business owners have tailored this process to meet their particular exit objectives and have left their businesses with more cash than they’d ever imagined. A complete Exit Plan rests on The Six Step Exit Planning Process. These Steps are illustrated in six simple questions: Do you know your exact retirement goals and what it will take — in cash — to reach them? Do you know how much your business is worth today, in cash? Do you know the best way to maximize the income stream generated by … [Read more...]

Emerging Markets

  American small to medium sized businesses, are the backbone of the U.S. economy.  The news that small businesses will now be assisted in expanding into emerging global markets should make entrepreneurs and small business owners confident.  We are hopeful that the government will shift its focus away from huge corporations like Halliburton to concentrate on helping smaller to medium sized businesses which are the types of businesses that produce products and services that the overseas market likes.  Now that the U.S. dollar has shrunk in value, our products are now much more affordable to countries overseas.  A new initiative that the government (through The Overseas Private Investment Corporation - OPIC) makes us hopeful that the focus will now be on helping small to medium privately held companies, which are the type of companies LISITEN ASSOCIATES represents.  (Hopefully) our companies will be able to take advantage of OPIC. OPIC was established … [Read more...]

Buyer Confidence Bigger Than Ever

The buying and selling of businesses slowed down for more than a year beginning October of 2008 .  Now it appears buyer confidence is back and better than ever. We have a broader base of buyers as well.    Mergers and acquisitions posted a fourth consecutive quarterly increase in the second quarter and deals in the first half of the year reached the highest level since 2007, an indication that more companies are increasing their confidence in the economy. During the economic downturn, many companies were hesitant to sell, concerned about not getting a fair price while larger corporations hoarded cash to survive the recession. Buyer confidence definitely increases or decreases due to fluctuations in the economy.  As of 2011, we are busier than ever before, getting hundreds of calls per week of interested parties wanting to buy businesses.  We are getting over 100,000 hits per week on our websites. We are seeing over 150 new buyer registrations weekly.  Many of them are … [Read more...]

Selling Your Business Now

  There are 79 MILLION baby boomers in this country and within two to three years , those that own their own their own Businesses, are going to be selling their businesses ( approximately 15 million new sellers).  Now is the best time to sell a business  before this increase in  competition takes place.  Competition drives prices down and with more baby boomers deciding to sell over the next few years, you will get less money for your business if you wait. The good news is that many small businesses appear to be getting healthy again so these next two years may be the prime time to sell. In addition, we are experiencing a period of very high buyer demand – there is a large contingent of buyers, with money, chasing very few deals. This is especially true for baby boomers who may be looking to retire in the near future.Just think about what it might cost if owners wait until after taxes eventually do go up. First of all, the ‘paper value’ of many business to make up for the … [Read more...]

Lisiten Associates Acquires Licensing Rights for Bedbugenders, Inc.

 RT Public Relations, LLC LICENDERS announces a new product line and service, BEDBUGENDERS For Immediate Release, January 27, 2011, contact, Renee Towell 201--606-1693) - Just a week or so ago, on ABC television’s “Live With Regis and Kelly”, Mark Consuelos (who was filling in for Regis Philbin) and his wife, co-host, Kelly Ripa started having a discussion about bedbugs which then turned into a conversation about head lice. Ripa could get the audience to laugh about bugs and that makes Adie Horowitz, CEO of LICENDERS very happy!  Ripa gave an unsolicited verbal plug for LICENDERS, a company that has a natural product line to get rid of those pesky head lice bugs and a home service as well as a New York City salon.  Ripa and her family used the service just this past summer when her daughter Lola got head lice.  What Consuelos and Ripa did not know was that Horowitz has been toiling away at creating a natural bedbug line and at home service for the last year which is coming out … [Read more...]

Seller Financing: The Basics

Seller financing has always been a mainstay of business brokerage.  Buyers don’t have the capital necessary to pay cash, are unable to borrow the money, or are reluctant to use all of their capital.  Buyers also feel that a business should pay for itself and are wary of a seller who wants all cash or who wants the carry-back note secured by additional collateral. What sellers seem to be saying, at least as perceived by the buyer, is that they don’t have a lot of confidence in the business or in the buyer or perhaps both.  However, if you look at statistics, it’s apparent that sellers usually receive a much higher purchase price if they accept terms. Studies reveal that, on average, a seller who sells for all cash receives only about 80 percent of the asking price.  Sellers who are willing to accept terms receive, on average, 86 percent of the asking price. The seller who asks for all cash receives, on average, a purchase price of 36 percent of annual sales while the seller who will … [Read more...]

Business Valuation

Many experts say no! These experts believe that only half of the business valuation should be based on the financials (the number-crunching), with the other half of the business valuation based on non-financial information (the subjective factors). What subjective factors are they referring to?  SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats – the primary factors that make up the subjective, or non-financial, analysis. Below you will find a more detailed look at the areas that help us evaluate a company’s SWOT. … [Read more...]

Do You Have an Exit Plan?

"Exit strategies may allow you to get out before the bottom falls out of your industry. Well-planned exits allow you to get a better price for your business." From: Selling Your Business by Russ Robb, published by Adams Media Corporation Whether you plan to sell out in one year, five years, or never, you need an exit strategy. As the term suggests, an exit strategy is a plan for leaving your business, and every business should have one, if not two. The first is useful as a guide to a smooth exit from your business. The second is for emergencies that could come about due to poor health or partnership problems. You may never plan to sell, but you never know! The first step in creating an exit plan is to develop what is basically an exit policy and procedure manual. It may end up being only on a few sheets of paper, but it should outline your thoughts on how to exit the business when the time comes. There are some important questions to wrestle with in creating a basic plan and … [Read more...]

Rating Today’s Business Buyers

Once the decision to sell has been made, the business owner should be aware of the variety of possible business buyers. Just as small business itself has become more sophisticated, the people interested in buying them have also become more divergent and complex. The following are some of today's most active categories of business buyers: Family Members Members of the seller's own family form a traditional category of business buyer: tried but not always "true." The notion of a family member taking over is amenable to many of the parties involved because they envision continuity, seeing that as a prime advantage. And it can be, given that the family member treats the role as something akin to a hierarchical responsibility. This can mean years of planning and diligent preparation, involving all or many members of the family in deciding who will be the "heir to the throne." If this has been done, the family member may be the best type of buyer. Too often, however, the difficulty with … [Read more...]

Why Sell Your Company?

Selling one's business can be a traumatic and emotional event. In fact, "seller's remorse" is one of the major reasons that deals don't close. The business may have been in the family for generations. The owner may have built it from scratch or bought it and made it very successful. However, there are times when selling is the best course to take. Here are a few of them. Burnout - This is a major reason, according to industry experts, why owners consider selling their business. The long hours and 7-day workweeks can take their toll. In other cases, the business may just become boring - the challenge gone. Losing interest in one's business usually indicates that it is time to sell. No one to take over - Sons and daughters can be disenchanted with the family business by the time it's their turn to take over. Family members often wish to move on to their own lives and careers. Personal problems - Events such as illness, divorce, and partnership issues do occur and many times … [Read more...]