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Deal Momentum: A Key Factor When Selling Your Company
Newton's first law of motion says that things in m otion tend to stay in motion. Well, deal momentum works the same way in business acquisitions. So, as a Seller you should know that the key to a successful transaction is to come out strong. The deal clock is set in motion as soon as your company hits the business-for-sale market, not later in the process when a buyer presents the first offer.
To generate deal momentum, a business owner should prepare for the trip to the marketplace before the "train leaves the station." This means organize your documentation and vet potential roadblocks that can derail or delay reaching the "done-deal" destination.
Using these 14 karats of knowledge will help you feel confident that when the sale train does leave the station, it will have the momentum necessary to reach a timely closing:
Read the entire article here
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Ask the Experts
Question: What are a few of the most important things a buyer will want to know if they're thinking about buying my business?
Answer: While these issues might vary, there are five that almost always play a role in a buyer's decision:
1) The numbers - You must be able to prove your numbers for the last 3-5 years. Buyers want to see tax returns and financials.
2) Owner training - A reasonable training period is expected that will provide the buyer with adequate time to get settled in and to become acquainted with employees, customers, clients, suppliers, and overall operational aspects of the business.
3) The reason for the sale - Be prepared to explain your motivation to sell.
4) Growth potential - Be prepared to demonstrate how sales and profits can be increased and what it would take to get there. No one buys a business to maintain the status quo.
5) Competition - Be able to explain the advantages your business has over your competitors and where you are on the totem pole.
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 Texas Economic News
We watch economic and market conditions compared to the rest of the country because these factors affect business value. The following articles were all published since our last newsletter.
America is on the cusp of an unprecedented explosion in biomedical innovation, and Texas is leading the way
Job wars between Texas and IL, CA, and NY make fun political theater, but TX brings powerful ammo to the battle
Texas added more jobs than any state in June...in multiple industries....The entire economy is growing
Is Hollywood the next industry to move to Texas?
Why Texas Matters -- Big, Hot, Cheap & Right: What America Can Learn From the Strange Genius of Texas
Austin's 'Silicon Hills' Builds on Its Infrastructure - NY Times
New Houston PE firm raises $30 millions to pump into manufacturing and distribution firms in Texas
Gulf of Mexico projected to be fastest-growing offshore market in the world
Texas has two of the world's top 50 most valuable sports teams - Dallas Cowboys #5, Houston Texans #13
Houston's office development continues momentum -- but can't keep up with demand
It's hard to be humble in a Houston oil boom
Houston's economy has drawn 1000s of young professionals from other U.S. cities causing a tight multifamily market
Relocation Mania - Houston's hot economy is driving the residential RE market and relocation business thru the roof
Houston deals led health care M&A in Q2
Texas cities dominate national top 5 list for economic health - Dallas #2, Austin #3, Houston #5
Houston No. 1 city for recent college graduates - Austin #3
CBRE Houston Office Market Reports just published for the 2nd Qtr 2013 and the stats are undeniable
Long Term Interest Rates Lowest in Two Centuries - "What a great time to buy or sell a business."
Former Texas U.S. Congressman Ron Paul Launching Media Channel
Which 10 American Cities Are Seeing Soaring Wages? - 2 of the 10 are in Texas
Where will the buyer of your business come from? Here are the stats
Got profit? Texas international businesses do
Houston Passes New York to Become Nation's Top Exporting Metro Area
Texas Universities rank high among top in the world
CNBC Ranks Texas No. 2 State for Business -- Texas, always 1st or 2nd, keeps the streak alive in 2013
The Great Texas Wind Rush -- How Texas became the unlikely leader in wind energy
Texas Rises
Texas v. California: The Real Facts Behind The Lone Star State's Miracle - Forbes
Health Care & Energy - Houston's 2 biggest industries - and the largest hedge funds are buying
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