Noteworthy Online

online-linksHere we share with you good ideas discovered online. Click here to email us the title and its online link to the best-of-the-best you discover online so we can repost it here. Educational topics such as how to buy, sell, finance, value or increase the profit of small and midsize businesses. (Please no marketing pitches.)

Click the titles below.

Enjoy and prosper!



“Avoiding Trips and Traps in Valuation”

Click to see this valuation article on Clinton Lee’s website.

Excerpt:
Even in the USA, where there are at least five professional bodies accrediting and regulating business valuers, the Securities and Exchange Commission has complained that they do not always know whether valuations submitted by firms in their filings have been prepared by people with the necessary skill and experience. . . Finding an expert in valuing an entire business is somewhat harder. . .

Ted Leverette comments: On the basis of my four decades valuing small and midsize businesses, I like the insight in this article, especially what we should avoid: “Some Tips On Finding The Right Valuer” and “Caveat Emptor.” I wonder if you agree with the author about the risks of obtaining pricing estimates from brokers and online valuation tools. What about valuation jargon or false science?


Sweet Spot in Bell Curve for Businesses?

The ownership risks and value of businesses are influenced by their place in their lifecycle. Timing can spell the difference between a good or bad deal. If you are thinking about buying or selling a small or midsize business, now or ever, read John Martinka’s blog post: Tear Down or Build Up.

Let’s switch focus from companies to their employees: Bell Curve Vs Power Curve.

According to a Forbes article, the Bell Curve, in use for employee performance appraisals and compensation, does not accurately reflect the way people perform. The Power Curve tells a more accurate tale.

Can that insight also pertain to companies?


How to Spot a Liar

Posted on LinkedIn by William Bruce, ABI, American Business Brokers Association

Reformed LiarExcerpt from the article written by Carmen Noble, Senior Editor of Harvard Business School Working Knowledge:
Most people admit to having lied in negotiations, and everyone believes they’ve been lied to in these contexts. Key linguistic cues can help reveal dishonesty during business negotiations, whether it’s a flat-out lie or a deliberate omission of key information. We may be able to improve the situation if we can equip people to detect and deter the unethical behavior of others.

Ted Leverette lament: Those of us on the dealmaking playing field encounter liars every day!


Don’t Let Fees Get in the Way of a Partnership

Axial Networks, Inc.

Excerpt:
Every M&A advisor has encountered skepticism and reluctance from CEOs who know they need help during a transaction, but don’t want to pay for it.


Transition Services Agreement – a Buyer’s and Seller’s Perspective

Peter J. F. Ferrari, an attorney focusing primarily on corporate and commercial law, banking and lending law, and mergers and acquisitions.

Excerpt:
A poorly drafted Transition Services Agreement can lead to misunderstandings, service interruptions, and ultimately litigation – all of which are a poor use of post-closing resources. In smaller, owner-operated, turnkey transactions this type of agreement is often referred to as a Training and Transition Agreement. Don’t underestimate the importance of a good TSA.

Business Buyer Advocate ® Ted Leverette and his colleagues have for decades been trying to cause company buyers and sellers to more seriously pay attention, sooner, to what should occur during Post-Acquisition Due Diligence and Post-Acquisition Planning & Management. This is where we cope with what’s wrong and try to survive it. It’s also when well-done acquisitions can become better.


Why Buying a Company Can Be Better than Starting One

Richard S. RubackRoyce Yudkoff
Post from Harvard Business Review

Excerpt:
The most successful entrepreneurs through acquisition we’ve seen look for businesses we call enduringly profitable, businesses that are more likely to have a stable income over time. They also are attractive to the lenders and equity investors who provide funds for your acquisition. Rather than flashy, fast-growth tech companies, these are firms that share two characteristics which on the face make them seem dull — but that actually make them enduringly profitable.

Source: This came to our attention thanks to Loren Marc Schmerler, Bottom Line Management, Inc.


 


Email Ted Leverette
The Original Business Buyer Advocate ® Since the 1970s
“Partner” On-Call Network, LLC

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