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Buying or Selling a Business

[Author: Andy Goodman, INEDA President/CEO, 2013 | Keywords: Business, Operations, Acquisition] Over the past 12 years, I have consulted with many dealers considering buying or selling dealerships. Most sellers don’t think about selling until retirement or when business is on the downslide. The best time to sell a business, however, is when someone wants to buy it – usually when the economy is strong and the business is profitable and at its peak. While it may seem strange to sell a profitable business, this remains the most opportune time – especially when selling the business is your long-term goal. Whether you… Read More »

Mergers and Acquisitions – Analyzing Retirement Plans

[2007; R-2013 | Keywords: Business, Operations, Mergers, Acquisitions, Retirement Plans] Business mergers and acquisitions are a way of life in today’s economic environment. From phone companies and banks, to equipment manufacturers and dealerships, business mergers and acquisitions will continue to make news in the business world for many years to come. Steps Involved in a Merger or Acquisition The merger and acquisition process involves several critical steps. In an April 2005 Retailer article titled, “Becoming a Multi-Location Business,” Andy Goodman outlined six steps involved in a merger or acquisition. These include: Establishing a dialog with the owner(s) of the business… Read More »

When Opportunity Knocks – Purchasing a Business

[Author: Samuel I. Kreamer, J.D., C.P.A., 2007; R-2013 | Keywords: Business, Operations, Acquisition] The perfect opportunity presents itself. A manufacturer has approached you to buy a nearby dealership; or a nearby dealer (who will still be a “pin on the map”) wants to know if you’d like to buy him out. What do you do now? Following is an outline of the “action steps” necessary when purchasing an existing business. Letter of Intent The purchase of a business often commences with a “letter of intent.” The letter of intent is designed to be a non-binding, generalized outline of the transaction. It… Read More »

Valuing a Business

[2007; R-2013 | Keywords: Business, Operations, Mergers, Succession] Determining the value of a business remains one of the most important and complex steps when buying or merging with a business. How do you determine the value of a business? According to the booklet Business Valuation Strategies, business valuation is “as much art as science.” Value is derived by a complicated set of factors. So, it is imperative that the methodology used fits the needs of the business and is correctly applied in order to reach an accurate value. This requires someone with both experience and skill – a professional valuator…. Read More »