Posted on Wed, Sep 23, 2009
It seems that blogging has become the rage in the business community today. Everyone is fascinated by social media, developing profiles on Facebook, and beginning to explore the use and business value of networking sites and social media outlets like Twitter.
If you’re like us, you probably already have enough on your plates, and creating your own social media presence, much less reading someone else’s blog or tweets, seems like more than you may be able to handle. You are right to question the value of this blog, and doubt whether you should take the time to read it. We are aware of that.
That is why with this first post, we are making the commitment to you to not waste your time. We want you to be able to trust us, and trust what we say. We will not write anything here that will not or does not add value to your business, or share knowledge with you about what we believe are the best practices in buying and selling a business in Tucson or Southern Arizona. Period.
Thanks for reading. We welcome your comments and look forward to a dialog with you.
Carrie Allen CBI BBS
Owner and Designated Broker
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com
Posted on Tue, Sep 22, 2009
Are you considering listing your Tucson business for sale? Or making a Tucson Business Investment? Or maybe you’re thinking about buying a business in Tucson, or Southern Arizona.
No matter what role you are playing in a potential business for sale transaction, it is paramount that you review all leases and customer and vendor contracts. Make certain that they are favorable and assignable to the buyer.
If possible see if you can renegotiate these contracts prior to listing the business for sale. A longer term real estate lease with at (or below) market rent and an option to renew for a specific period of time, with the rent increase spelled out in black and white, will be perceived as valuable by a buyer. And it also helps eliminates a source of risk and uncertainty for a potential buyer.
Similarly, it is a good idea to review you’re open customer contracts. Some customer contracts are with the business entity and will not transfer if just the assets of the business are sold and not the stock. Sometimes the contract will not transfer if more than 50% of a business is sold. Make sure you know the status of very customer contract prior to listing the business for sale. A contract guarantees future business to the buyer, and is therefore a sense of comfort. You want to be able to answer affirmatively to the greatest extent possible that these contracts will endure the sale of the business, and their benefits accrue to the individual buying business in Tucson, or making a Tucson Business Investment.
Vendor contracts may not transfer or assign as they are tied to the seller’s personal credit. A business buyer should be prepared to have to re-estabslish such lines of credit based upon their own credit.
If you'd like more information on this subject, please contact us at 520-327-4454 or visit us at www.allenandyoung.com