Tag: Successful

Characteristics of a Successful Business – M&A Transactions

Many businesses fall short of their potential valuation or maximum sale price. While there is no such thing as a perfect business without flaws or challenges, the businesses which sell at the top of the valuation range or command the highest multiple embody a number of common characteristics.

1. Increasing revenue/profits. Cash is the fuel of business. Businesses that have strong financials with year over year growth in revenue and profits will be in demand and should achieve an attractive valuation.

2. Clean Books. Having accurate, detailed, up-to-date and professionally prepared financial statements and records is one of the most critical components to a successful business sale.

3. Bright prospects for future. Businesses that operate in an industry that has a strong outlook for continued growth in the years ahead will be highly sought after.

4. No customer concentration. A business that has a diverse and broad customer base will have a lower risk that the loss of any one customer will have a material impact on the revenue and profits of the business.

5. Multiple vendors. Companies with a diversified product and/or service offering with a deep bench of suppliers and partners will be a less risky acquisition than a company who is dependent on only one manufacturer or service provider to generate income.

6. Stable work force. Having a loyal and content work force with long term employees is always a positive attribute for a buyer seeking to acquire a privately held business.

7. Established Processes. A business that has written procedures detailing work flow and operational processes provides greater continuity during a business transfer of ownership.

8. Owner not the business. Companies where the owner lends their expertise by working “on” the business vs. “in” the business are less likely to experience a loss of revenue during a sale. Owners who have become the face of the business where they are one of the chief reasons for customers using their products or services create challenges for the new owner in retaining these loyal clients.

9. Business qualifies for acquisition funding. A business for sale that meets the qualifications for acquisition funding by a bank or SBA backed lender will benefit from their ability to be marketed to a wider audience. Certain issues prevent 3rd party financing from being secured including poor financial performance or messy books with unreported cash and questionable add-backs.

10. Professional Advisors. Successful business sales require a team of professional advisors who are experts in their designated field. Members should include an experienced M&A advisor or business broker, a business attorney who specializes in transactions, and a CPA knowledgeable about tax structuring and asset allocation. Experienced advisors are worth their weight in gold and will add value that far exceeds the fees involved.

Small business ownership involves some level of risk. The price a business is valued at should reflect the degree of risk. While the element of risk can never be eliminated from small business ownership, the ten characteristics detailed above should mitigate many of the issues that cause concern for buyers when pursuing an acquisition. This in turn will enable the business value and sale price to be maximized.

Michael Fekkes is a Senior Broker at ENLIGN Business Brokers in Nashville, TN. Michael is a Certified Business Intermediary [CBI], a Certified Exit Planning Advisor [CEPA], Chairman of the International Business Brokers Association [IBBA] – Communications Committee, as well as a former business owner. He can be reached at 910.691.2202 or mfekkes@enlign.com. ENLIGN Business Brokers is a Professional Services Firm serving the Southeast that is headquartered in Raleigh, NC providing business intermediary services ranging from valuation and sale to exit & succession planning strategies.

Article Source:
http://EzineArticles.com/expert/Michael_Fekkes/731695

Learn the Successful Tips with Business Etiquette China

China is an oldest continuous civilization and has different business practices from other countries. A person who wants to start or expand the business area needs the understanding of Chinese business etiquettes. The knowledge and practice about the common customs is helpful to get the command in hands. The person will feel relaxed even in the critical situations and comfortably creates the focus on the actual matter. An individual will get the great opportunity to learn more in the business dealings. The business etiquettes are the excellent way to get the sensitive guidelines in respect of all the activities.

The qualities such as modesty, patience, politeness, ranking and many others are valued by Chinese and facts are relevant to their present business interactions. To create the successful planning’s the candidate has to provide equal importance to personal relations also. The business contacts and relations are key factors to get the growth in respective field. The relation building is a good process that positively affects the overall structure. In case of general meetings one can has to follow the punctuality like rules. The rules are equal for employee and boss; both of them have to arrive at time or slightly early from scheduled time.

According to the Business Etiquette China person has to prepare all the arrangements in advance manner. The servers perfectly know all the etiquettes and in return they provide the accurate proportion of value to the product and service. If an individual is able to capture the attention of Chinese hosts in first meet then it really proves a secure or follow-up approach. The language capabilities are the top way to get the benefits in the form of profitable deals. The language is the essential need that is helpful to easily convince the business partners.

The working areas demand the proper formal attire along with the best management strategies. The country values the seniority so it is important to address the business partners with their title. The way of self introduction is clear and impressive that states about the work and position of the company. The introduction includes the handshakes, giving and receiving business cards along with a positive response impression. The best suggestion for business etiquette China includes the fact that weighs the words before carrying out. All the names and positions need the respect even they are translated in English or any other language.

If the person has the contact with Chinese name then he must mention it in the form of useful links. The Chinese likes to maintain business relations with an intermediary in the form of an individual or an organization who are able to make a formal introduction. The candidate has all the record in a written format that contains the description about the company, products and services including the complete history. There must be a proper written form of appointments in an advanced way. The use of visual aids is helpful in case of large meetings that offers the clear and exact focus on the actual idea. The challenging work in the perfect way definitely offers the long term benefits.

World Business Etiquette offers information regarding business etiquette China. Also you can join us on facebook and twitter for more detailed specifications.

Open A Successful Business With The Experts

Starting and establishing own business is an ultimate form of living a successful life. There is different satisfaction and joy in running own businesses. There is no need work extra hours under someone to make the monthly revenue presentation for others businesses. You can take independent decision to for business problems, and use your ideas and creativity to run it. There is pride and honor even running a miniature reputed business unit. Often people don’t get it while working under someone. However all these things sound good, but require lot of hard work and determination. There are certain points to remember while opening any business.

Collecting Idea: The great journeys of the world begin with the first few steps, providing the steps are taken in the right direction. Similarly, the first step of opening any business is the ‘realistic idea’ and it should not be concluded on the hypothetical observations. The idea should meet the demand of current and future market. The idea for starting a business should be novel and sounds interesting. Start collecting various business ideas as early as possible and analyze the success rate of your business idea. Following are the steps to analyze the probability of idea’s success.

Research: Conduct a thorough research of the market about the possibility of fitting your business into it. Ambitious business entrepreneur can contact the experienced counselor to share their idea about opening a business. Some of the sites are really helpful in giving suggestion and guidance to run a business. They can also conduct research on your behalf and figuring out the possibility of its success.It is better to get some practical hands on experience of the business and it can be gained while working in the similar business organization. The experience will might show you about the various problem can be faced and what are the different way to solve them. You will also learn to take perfect real time decisions and most of the entrepreneur need this quality to run a business. The research may give a hint about the amount or money would be taken to convert your idea into reality. The next step begins with its establishment, find out the strength and weakness of them market and draw conclusion accordingly.

Establishing: This is very important steps and there are many elements to consider while establishing your business. The first element is to find out the name for the business, it should be unique and not copied. The second step is to choose the place for it and followed by forming legal structure. It includes patenting and trade marking of the business. Once it is established, you can happily run it in your own ways.

All in all, opening a business is not an easy task and the road of establishing a business covered with many pitfalls. Nevertheless, some sites can offer a helping hand and turn your dream of owning a business into reality. You can contact them and they will step by step guide to open a successful business.

Need expert help or idea for starting a business then contact us. We guide you step by step and teach you how to start your own business.

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