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Spring 2009
Welcome

A few months ago business owners could not be blamed for wanting to close their doors and have a long holiday from what seemed to be a pervasive “doom and gloom”.

Every story on the economy painted a frightening picture, but fortunately for most businesses, things have not been as bad as anticipated. However, that’s not to say all is well yet, but things are certainly looking more positive.

Business people/buyers are still being conservative and lending institutions are still being cautious. This means securing bank finance to buy that business is more difficult
but not as impossible as some make out.

Vendor finance is another option to help you close that deal. See our back page story for more details.

If you’re thinking of selling or buying a business you’ll be happy to hear it’s actually a great time.

Even in tough times people are always looking to buy a well established business for a whole host of reasons.

Smaller businesses are attracting people who see a business acquisition as a golden opportunity for expansion in the present climate while others see it as buying a job.

If you’d like to know more about current market opportunities call and have a chat to our team at Jamieson.

Inside:

Sellers beware of the ‘earn-out’ clause - P2
Top 5 mistakes to avoid when selling - P3
Have you considered vendor finance? - P4
To sell or not to sell?

This is the dilemma facing owners of small and medium size businesses who are thinking about an exit strategy. Potential business sellers face numerous uncertainties:

• Uncertainty about the asking
price: You must get experienced advice on price. The selling price should not be the only motivation for selling. Owners sell their businesses for other reasons than money. Reasons include retirement, new opportunities, sickness and desire for a sea-change.

• Uncertainty about timing the sale: Most sales of small and middle market companies are driven by personal considerations. It may depend on individual circumstances, but you must get experienced advice as timing is important.

• Uncertainty about how to go about selling: This can be so overwhelming that the owner keeps

procrastinating. It also takes considerable time and business
owners are usually so time-poor they can’t afford to take their eye off the main game which is driving the business.

Furthermore, sellers often lack knowledge and experience in selling a business and therefore discuss the issue with friends, relatives or their accountant, all of whom are probably no more knowledgeable or experienced than the seller when it comes to selling a business in a specific industry.

The key to success is to obtain professional advice from a business broker.

If you’re thinking of selling your business and would like to discuss these and other important considerations contact us now.