To determine whether your business is ready to be franchised, you should consider the following: A Proven Business Model: Your business model should be proven and successful. You need to demonstrate that your business can be replicated in different locations and that it generates consistent revenue and profit. Documented Processes: You should have documented procedures […]
michaelshea
What is a letter of intent and when is it appropriate?
LOI are the preferred tool for larger deals….why? Well the contracts are that are standardized are generally not going to work for the complexity involved. That being said in my opinion they afford the buyer the most protection as they are not binding. Smart sellers at the Main Street level will incur more legal fees
Seller Tsunami…yeah not so much
Entrepreneurs in my experience particularly the small Main Street businesses usually have bad financial planning and quite often go all in on get rich quick things like flipping houses etc. Risk, Hedging, diversity of portfolios all are singularly uncommon in my experience. Im not going to drill down on why but take note….2008 hit. It decimated many many Business owners who had either all their money in their business or had bought real estate which collapsed.
How does mezzanine financing work?
Mezzanine financing is a type of financing that combines elements of both debt and equity financing. It typically involves a company borrowing money from investors in exchange for the promise of future interest payments and an ownership stake in the company. Mezzanine financing is often used by companies to raise capital for expansion or to […]
The difference in Stock and Asset Sales from a very very top line.
A stock sale and an asset sale are two common methods of selling a business, and they differ in how the ownership and assets of the business are transferred to the buyer. In a stock sale, the buyer purchases the shares of the business from the existing shareholders, which means that the ownership of the […]