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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.

Selling a Business Starts with Professional Sales

In 1998, the trademarked Turner Television Network (TNT) phrase, “Win or Go Home” was first used in advertising promoting the NBA playoffs.   This phrase is often used by coaches to describe tournament play in athletic competitions ranging from tennis to basketball.   The cold reality of tournament play is that at a given place & time performance needs to be sharp to achieve the desired outcome.   Professional sales are the closest approximation of tournament play athletic competition in the business world.  Similar to the highest paid professional athletes, individuals that can perform in the pressure and performance assessed environment of sales are rare and frequently rewarded financially.

The sale of privately held companies is one of the most sophisticated “Big Ticket” sales professions an individual can pursue as a career.   It is a career that in order to be done well requires experience, knowledge, and a strong, professional skill set.  Many business brokerage firms attempt to mitigate the risk of this profession for their firm and employees by charging their customers upfront retainers & administrative fees.  Continue reading

Methods for Reducing Risk During Technology Due Diligence 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 John Beauford of West Burney Consulting (www.westburneyconsulting.com):

Methods for Reducing Risk During Technology Due Diligence in the Sale of a Business

There are many things to consider when a business owner prepares for a business sale. In addition to measures like cleaning up accounting books and optimizing expenses, today’s owners should consider the condition of the technology side of the business as well. As technology becomes more prevalent across all areas of business, it is crucial to plan for the technical due diligence that will come with a sale and thereby reduce risk of material impact to the sale process. Continue reading

The Advantages of Community 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 article has been provided by Cathy Griffith of SaviBank (www.SaviBank.com):

The Advantages of Community Bank Financing

 

The buyer has several financing options when purchasing a business. These include:

*using personal savings;

*seller carry-back financing;

*bank financing; or

*a combination of two or all three of the above.

Continue reading

Entity Choice and Deal Type when Buying a Business – What, Why and When?

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 David Cook of Sovereign Legal (www.sovereignlegalgroup.com):

Entity Choice & Deal Type when Buying a Business –
What, Why & When?

I’m regularly asked by business-buyer clients a series of questions about entity choice and structuring the purchase and sale transaction. Our counsel focuses on Continue reading

How Recurring Revenue Increases Business Value

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 Jane Johnson of Business Transition Academy (www.businesstransitionacademy.com):

How Recurring Revenue Increases Business Value

When it comes time to sell their businesses, the first question that most owners ask is: “How much can I get?” It makes sense. Owners are eager to cash in and be rewarded for all of the hard work they have poured into their businesses over the years.

But the reality is that for many businesses, the initial valuation will be a much lower number than their owners want to see. In order to net enough from the sale (after taxes and fees) to fund the rest of their lives, most owners will have to work to boost the value of their businesses – sometimes significantly. Continue reading

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

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

Aristotle Onassis