At a meeting of the IBBA Board of Directors on June 15, 2011, the Board approved several revisions to the IBBA Bylaws. The IBBA Bylaws require that the membership is informed of any changes within 45 days of the Board approval. Candidly, we recognize that we are late in informing the membership. However, in order to comply with the Bylaws we are taking the opportunity to inform the membership at this time. Highlights of the revisions to the Bylaws include:

• Updates necessitated by the repeal of the Texas Non-Profit Corporation Act and replacement of that act by the Texas Business Organizations Code since the IBBA is incorporated in Texas
• Changing the Chief Staff Officer's title from "President" to "Executive Director"
• Updated language on the number of Directors in section 4.01 to provide for flexibility in the event of expanding or contracting membership, economic reasons, or for other reasons
• In section 4.17, a permanent directorship, with voting rights, for M&A Source replaces the M&A Source's Ex-Officio position on the board.
• Clarification of the role and responsibilities of the Incoming Chairperson as the Treasurer of the Association in sections 5.01 and 5.09
• Section 5.03 has been revised to realigning the Officers' terms of office to coincide with the fiscal year
• In section 7.03, the Credentialing Committee was added as a standing committee and the Public Relations Standing Committee was renamed to the Marketing Committee
• Various typos and grammatical errors were corrected.

These changes were a result of the recommendations made to the Board of Directors by a specially appointed IBBA Bylaws Task Force whose charge was to review the Bylaws for necessary revisions and general clean up.

The full IBBA Bylaws are available in the Member Information section of the Members' Only section, My IBBA, and can be accessed after logging into the website.

Please contact IBBA Headquarters at 888.686.IBBA (4222) or admin@ibba.org if you have any questions.

Thinking about buying an existing business?

Many wannabe entrepreneurs opt to go in this direction because they lack ideas or time to create a new company from scratch - a move described in the latest installment of my column, Accidental Entrepreneur. But there are also potential risks involved in taking over an establishment previously owned by someone else. Read More  

Buying an Established Business:

Last year, Mark Shelstad set out to become his own boss after concluding that his portfolio-manager job had become unstable. But instead of trying to build a company from the ground up, the Chicago-area resident began searching for an existing one he could buy.

"I didn't have a creative idea worthy of starting a business from scratch," says Mr. Shelstad, who is in his mid-50s. Also, "I wanted to get up and running quickly due to my age."   Read More 

August 30-31:        TABB Conference with Courses

September 7:         NEBBA Course #325

September 8-9:      CVBBA Courses

September 15:       MBBI Fall Conference

September 15-17:   IBBA Canada Fall Conference with Courses

October 12:           GABB Course #120

For More Information on These Affiliate Events Click Here and view the Affiliate Education Calendar. 

1. The after-tax profits and cash flow described above;
2. The additional after-tax profits and cash flow the seller generates as a result of the change of ownership;
3. Most importantly, the additional after-tax profits and cash flow that the buyer generates because of the acquisition. Assuming that the buyer is several times larger than the seller (the norm) these dollars can be very significant. For example, if the buyer is 10 times the size of the seller, and increases its earnings a mere 10% as a result of the acquisition, this is precisely the same dollars as if the seller had doubled its earnings. A 20% increase is the same as the seller tripling its earnings, etc. Small wonder that, in such cases, a small multiple of EBITDA is simply not justifiable. 

1. For deals under $5 million, the strategic sale of a privately held company is highly likely to sell for more (perhaps significantly more) than would be the case in a financial sale.
2. The owner/manager who plans to sell the company within five years will be well advised to invest time and resources in building the company into an attractive strategic acquisition candidate.  

Click Here to Read the Full Survey Results and Report