A well-structured merger and acquisition deal can help better ensure a smooth transition after the business is sold. Business owners can help achieve this goal by avoiding common challenges that are often present during these deals. Two challenges that are often overlooked that can make or break the success of a deal include:
How will the Wayfair decision affect your business?
The Supreme Court of the United States (SCOTUS) recently released a holding that has shook the business world. In the past, businesses were subject to state sales tax when they had a physical connection to the state. A headquarters or brick and mortar store within the state are examples that met this requirement. This is no longer the case.
SCOTUS changed the rules with South Dakota v. Wayfair, Inc. In this case, SCOTUS stated states can impose a sales tax on certain out-of-state retailers.
How to successfully manage a merger
Mergers are complicated because it is about bringing two separate entities into one large business. Both companies have to bring their business savvy, financial knowledge and negotiation skills to the table. Oftentimes, their ideas will conflict.
Mergers rely on a grueling process of negotiations, compromises and discussion between business representatives. After negotiations are finalized, representatives have to guide a smooth transition for employees of both businesses. Here are a few tips to manage a successful merger.
Tips for entrepreneurs joining the commercial real estate market
The commercial real estate market is booming. Entrepreneurs that are looking to join this market either individually or with a group of like-minded investors can take steps to better ensure the process goes smoothly once they find the right property for their investment purposes.
Financial backing can set you apart.
Looking to sell commercial property? Avoid these common mistakes.
Selling commercial property is much different than putting a residential site on the market. This market is competitive and filled with discerning buyers. Potential buyers are often entrepreneurs and investors who manage several properties. A seller needs to put in work to bring the right buyers to the table.
Ideally, a proactive strategy will lead to sevearl potential buyers interested in purchasing the property. It is important to make the transaction move along smoothly once you get the buyers to the table. Entrepreneurs in this situation can benefit from the mistakes of others.
The medical practice conundrum: To sell or not to sell?
The market for selling a medical practice is very active. Physicians that run these practices and are considering an offer are wise to carefully review their options. Another practice, hospital or private equity firm may have expressed interest in purchasing the practice, but is it the right business move for your business?
The group can benefit from a careful review of the motivation behind accepting the deal. Set a tangible goal for your practice. Do you want your practice to continue to stay competitive within the market, to grow organically or to have more resources to serve the community? Would a merger or acquisition deal help achieve this goal? Answer these questions before moving forward with negotiations.
Planning for parking: Know your zoning laws
The U.S is a car country. Despite much recent talk of driverless vehicles, car sharing and increased public transportation, the car is here to stay for quite some time. Moreover, it might even be on the rise: in Houston, Texas there were 1.59 vehicles per household in 2016, rising from 1.58 in 2015
Three common commercial real estate myths
There are many opportunities for investors within the commercial real estate market. However, a failure to recognize some common myths as falsehoods can steer an investor in the wrong direction. As such, it is wise to take note of these three common commercial real estate myths to help better ensure a successful investment strategy within this market:
Small & mid-sized businesses most often victims of embezzlement
Embezzlement seems like an issue for large corporations. Unfortunately, small businesses are at an even greater risk than their larger counterparts. Researchers with the Hiscox Embezzlement Study report white collar criminals most often embezzle from small and mid-sized businesses.
The study defined small and mid-sized businesses as those that employ fewer than 500 workers. These businesses were most often victims of schemes that took away small amounts of money over a large period of time. The losses were severe. The study notes businesses lost an average of $1.3 million over the span of the scam.
Selling your business? Two reasons to consider a strategic buyer.
A business owner must make many decisions before moving forward with the sale of a business. One of the very first involves the type of buyer the seller would consider for the transaction. Sellers can classify buyers based on one of two categories: strategic or financial.
A strategic buyer is, essentially, a buyer that understands your business. This could be a competitor or larger business that operates in the same market. This type of buyer can offer several advantages over a deal with an interested buyer that is focused only on the financials, like a private equity group.
