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IBA (International Business Associates) maintains a blog on its website on a regular basis as a regional resource for information about selling or buying a privately held company or family owned business and entrepreneurship in the Pacific Northwest. The president of IBA, Gregory Kovsky, frequently posts information on the blog. Mr. Kovsky has over 20 years of experience in mergers & acquisitions, business brokerage, and commercial real estate. He has personally completed over 250 transactions involving manufacturing, distribution, retail, service, and technology companies. Blog articles will also be posted on the www.ibainc.com by professionals serving the mergers & acquisitions and business brokerage industries. Blog article submissions are welcome from the accounting, legal, banking, financial planning, and other industries affiliated with the sale or purchase of businesses and real estate. Blog articles submissions should be submitted to info@ibainc.com with the subject line indicated BLOG ARTICLE.

IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, and mergers & acquisitions community on subjects relevant to the purchase & sale of privately held companies and family owned businesses. IBA is recognized as one of the best business brokerage firms in the nation in terms of successfully negotiating transactions that are “win-win” in an environment of full disclosure between the parties.

Working “9 to 5” Reflections

The #1 song on Billboard’s popular music chart this week in 1981 was “9 to 5” by Dolly Parton.  Listening to the lyrics of that song as part of a musical recap of the top songs from this week in that year resulted in a personal moment of admiration for what has been achieved by women executives & entrepreneurs in American business during the last 35 years.

One set of lyrics from “9 to 5” that resonated with me during this time of reflection was

“They just use your mind and they never give you credit.”

Stepping back in time, I can only imagine the frustration experienced by the large group of intelligent, knowledgeable, and highly skilled women who contributed to companies, but did not get the recognition, promotion, and compensation they deserved. However, the beauty of the American economic system is that for those who have the skill, knowledge, vision, and risk acceptance no barriers exist to create & execute a business vision as an entrepreneur.   Continue reading

Five Predictions for Cannabis Investing in 2017

IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities.  Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses. The following blog article has been provided by Meghan Daniels of Axial Forum:

Five Predictions for Cannabis Investing in 2017

“The legalization of cannabis is one of the greatest social, economic, and political movements in the past century. Currently, legal cannabis sales are around $5 to $9 billion per year, representing only a fraction of the overall demand in the country and leaving much room for growth,” says Harrison Phillips, Analyst at Viridian Capital Advisors, a strategic and financial advisory firm dedicated to the cannabis industry. “Estimates for the size of the cannabis industry in five years’ time (end of 2020) are between $15 and $25 billion, with most estimates falling near $20 billion.” Continue reading

Finding Value Propositions When Buying a Business

The two most common motivations for selling a business in transactions facilitated by IBA business sale intermediaries are retirement and a desire by an entrepreneur to move onto their next project due to a preference to engage in the creation & development stage of a business life cycle rather than the management & refinement stage. These motivations for sale commonly result in a “good faith” negotiation between the parties where the seller receives a “fair” value for their business and the buyer purchases the business at an appropriate value for its industry and the associated risk of the investment. Continue reading

Professional Problem Solving in the Sale of a Business

I recently became familiar with the inspirational story of Walter Raineri.  Walter Raineri is a former CPA who over a five-month period in 2005 lost 95 percent of his vision due to Retinitis Pigmentosa (http://www.blindness.org/retinitis-pigmentosa).  Mr. Raineri had a choice when faced with the problem which he conveyed the following way in an interview, “I had to decide to stop trying to be a poorly functioning sighted person and start being a highly functioning blind person.”   The path forward selected, Water Raineri with effort, perseverance, and skill became a x-country skier and sailor performing at the highest levels with the assistance of experienced, knowledgeable mentors despite being significantly visually impaired.  He is an inspiration to all of us on what is possible. Continue reading

Buying a Business with Bank Financing

IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities.  Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses.  The following blog has been provided by John Martinka of Martinka Consulting (www.martinkaconsulting.com):

Buying a Business with Bank Financing

 

Gregory Kovsky and I have worked together on many deals over the years. While we both negotiate to get our clients the best deal possible we understand the ultimate goal is a closed transaction with the right buyer for the business. The right buyer doesn’t mean the most money, it means the best person for the company, its employees, and the seller’s legacy. Continue reading

Return on Investment Calculations Employed by Business Buyers Evaluating Privately Held Companies for Potential Acquisition

The purchase of a privately held company in the mergers & acquisitions marketplace is at its heart an investment decision.  However, the type of investment return desired from the acquisition can vary greatly depending on the goals & motivations of a specific buyer.   The following are three of the most common return on investment calculations employed by business buyers evaluating privately held companies for potential acquisition.

The most common investment return calculation employed by a buyer evaluating a privately held company for acquisition is the calculation of a general return on investment.   To calculate a general return on investment on a business acquisition a buyer uses the EBITDA (Earnings Before Income Tax, Depreciation, & Amortization) from the most recently completed fiscal year and divides it by the targeted acquisition price.  Continue reading

Eight Ways Investment Bankers Add Value for Sellers in the Sale of a Business

IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities.  Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses.  The following blog article has been provided by Meghan Daniels of Axial (www.axial.net/forum):

Eight Ways Investment Bankers Add Value for Sellers in the Sale of a Business

Some owners looking to sell their business may balk at the prospect of paying to engage an investment banker. But owners who have been through the process unanimously believe that their bankers added value, according to a new study. Continue reading

Facilitating “Win – Win” Transactions in the Sale of a Business

It is common for parties negotiating a transaction involving the purchase & sale of a business to express a desire to complete a “Win – Win” transaction. A “Win – Win” transaction is a concept that is easily vocalized, but is often hard to conceptualize in a situation where the parties have distinctly divergent interests. At the most basic negotiating level in a business sale transaction the seller has a vested interest in obtaining the most favorable financial terms from their perspective and mitigating post transaction liability in negotiations. Conversely, the buyer has a vested interest in obtaining the most favorable financial terms from their perspective and obtaining the most comprehensive post transaction representations, warranties, and indemnification possible from the seller. Continue reading

Buying a Business Using 401(k)

IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities.  Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses.  The following blog article has been provided by David Nilssen, CEO and Co-founder of Guidant Financial (www.guidantfinancial.com).

Buying a Business Using 401(k) Assets

When it comes to small business financing options, it’s usually traditional funding methods that come to mind: working capital loans, SBA loans, business lines of credit, etc. But did you know an alternative option exists that’s allowed thousands of entrepreneurs to launch businesses debt-free? Continue reading

Buyer Value Drivers in the Sale of a Business

IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities. Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses. The following blog has been provided by Allan VanderHamm of Berntson Porter & Company, PLLC.

Buyer Value Drivers in the Sale of a Business

Continue reading

The secret of business is to know something that nobody else knows.

Aristotle Onassis