What "Business for sale" Really it means

Having a business for sale can mean many things, more than people think. How does one trade value compare to another and how do you get there? Because there are many types of businesses for many different industries, it stands to reason that there are numerous ways to approach the process of finding value.

There are three main approaches to value, which are the income approach, the market approach, and the asset approach. There are variations of these approaches and combinations of them, and things to consider because each and every business will have variations in what adds value to the business, and some of these differences are substantial.

First we must identify the type of sale: sale of shares or sale of assets. A stock sale is the sale of shares in the company; the buyer is buying the company based on the value of its shares, which represents everything in the business: earning power, equipment, goodwill, liabilities, etc. In an asset sale, the buyer purchases the assets and capital of the business that allow him to make a profit, but does not necessarily assume any liabilities with the purchase. Most small businesses for sale are sold as an “asset sale.”

Our question, when selling or buying a company, is this: what are the assets considered to arrive at an exact value? Here we will see some of the most common.

1. FF and E: this abbreviation stands for furniture, accessories and equipment. These are the tangible assets that the business uses to operate and make money. All companies (with some exceptions) will have a certain amount of FF&E. The value of these can vary greatly, but in most cases the value is included in the value determined by income.

2. Leases: The lease is the lease agreement between the property owner and the company that rents the property. The agreed rented space usually goes with the sale of the business. This can be a significant value, especially if a below-market rate is currently being charged and the lessor is obligated to continue on current terms.

3. Contractual rights: many companies do business based on ongoing contracts, agreements with other entities to do certain things for certain periods of time. There can be immense value in these deals, and when someone buys a business, they are buying the rights to these deals.

4. Licenses: In certain commercial sales, licenses do not apply; in others, there can be no business without them. Building contracting is one of them. So is accounting. For a buyer to buy a business, his purchase includes buying the license from the business or the license from the individual. Often times, the buyer will require access or availability of the license as a contingent element of the sale.

5. Goodwill: Goodwill is the earnings of a business beyond the fair market performance of its net tangible assets. In other words, anything the company earns in excess of its identifiable assets is considered “goodwill” income, where there is a synergy of all assets together. This can be tricky. Most business owners assume they have goodwill in their business, but goodwill is not always positive; there are things like “negative” goodwill. If the company earns less than the sum total of its identifiable assets, there is negative goodwill.

6. Trade secrets: some companies are about secrets. The reason why the business is in operation may be due to a trade secret, some aspect of a product or service that distinguishes it and gives it a market. In a commercial purchase, these secrets have value and go with the sale.

7. Trade names, phone numbers, websites and domain names: Some companies generate business simply by their name and identifiable aspects. If that changed, so would earnings. So when buying a business, the buyer will need those names and numbers to continue in business. Of course, in some cases these things would not matter at all, and that is why each one must be addressed individually.

8. Works in Progress – A construction company may have a multi-million dollar job in progress at the time of sale, which can take months to complete. In a case like this, the buyer would have to continue in the private work that the company was doing; for money and reputation. This is considered work in progress and has value and is therefore considered an asset and is part of the sale.

9. Business records: the history of a business detailed in documents and spreadsheets must necessarily be part of the sale of the business. The new owner can use the records to identify progress, track sales increase or decrease, adjust expenses and depreciation rates, and more. When someone buys a business, they are buying the current operation and all the details that led to it.

10. Real estate: the property of the seller in which the company develops its activity is inherent to the operation and, therefore, to the value. There are times when the new buyer needs to relocate the business to purchase it, but more often the property is considered an important aspect of business value, especially if there is equipment attached to the property and buildings suitable specifically for the business.

When a professional appraiser, business broker, or business owner values ​​a business for sale, it is considered more than just income. Assets, the economic values ​​used by the business to generate income and profits, are weighed heavily in determining the value of the business. And they must be taken into account to understand what a “business for sale” really means to a buyer.

Marketing strategy for iPhone

As with all Apple marketing, the iPhone’s marketing strategy is very clear, simple, and smart. With the plain and simple apple icon, Apple focuses on the pure and innovative style of its products without all the “fluff.” The iPhone was launched by Apple in June 2007. The innovative style of the iPhone was touted for months before the initial launch and has remained the best of the best when it comes to mobile phones for the past several years. Before the official launch of the iPhone, Apple ran four television commercials promoting the new cell phone.

The first of the commercials portrays the new iPhone as the next step to the popular iPod. The iPod was all the rage up to this point, and the iPhone was supposed to be the next generation iPod – oh, and it’s a phone too! The ad shows all the enhanced features available on the iPod, and more, the point is “There has never been an iPod that can do this.”

“So let’s say you’re watching Pirates of the Caribbean”
The finger clicks on the video and displays the movie on a wide screen.
“Mmm, did someone say squid?”
Finger returns to the menu and selects the Maps application to search for ‘Seafood’.
“The closest thing would be …”
The map shows all seafood locations and highlights the location closest to you.
“Ah!”

The finger clicks on the location of the seafood and the restaurant’s phone number is displayed. IPhone dial.

The first four iPhone commercials flaunted the convenience, innovation, and usefulness of a single product with the functionality of not just a phone or music device, but a product that can, among other things, listen to music, watch videos, view photos. , conduct conference calls, check email, surf the web, and view maps.

Apple not only uses television for its marketing strategy, it also makes use of its website by publishing videos, but also published a handful of press releases that could have been published in a single document. Apple often uses this tactic to generate publicity and leave the consumer wanting more.

With Apple’s short press releases, which gave the audience little, “Apple took advantage of a law of social physics: News, like nature, abhors a vacuum. In the absence of real information, those who care about a product They’ll Catch Any Rumors Apple may publicly disavow rumors from websites seeking drafts of the company’s plans, but secretly its marketing department must be delighted. It would cost a lot to buy that kind of web advertising. ” (Silverman, 2007)

The official iPhone website does more than provide product information. The website provides the best tips and tricks for using an iPhone, as well as a great focus on applications. Almost the entire iPhone page displays app images, offers the “App of the Week”, the website also contains sections titled “Apps for Everything” and “Top Apps”. The Apple website is an excellent marketing tool for current iPhone users and consumers who are interested in purchasing an iPhone. App promotion will create a stronger revenue stream for Apple. As customers see the top-rated apps, they are more likely to download the app, rather than searching through more than 25,000 apps to find one that may be of some value to the consumer.

Successful young men were the target audience Apple had originally targeted. Apple had hoped that with this target audience, and the fact that 48% of this audience did not yet own an Apple iPod, would allow them to reach their forecast of 10 million sales by the end of 2008.

A month before the launch of the iPhone, Solutions Research Group outlined a representative sample of those who were familiar with the phone. The forecast of potential buyers for launch day ranked the majority of customers of T-Mobile, AT & T’s only GSM-based product competitor, at 15%. The second-largest group expected to buy the new iPhone was AT & T’s existing customer base, at 12%. The Solutions Research Group also found that 72% of men, versus 28% of women, were more likely to research the phone at its $ 499 low price. (Malley, 2007)

The obvious current target audience for Apple’s iPhone includes young people in their 20s and 35s, wealthy teens, jet-setters, and “mobile” employees who work outside the office.

Apple is known for its simplistic but catchy commercials. In recent television commercials for Apple’s iPhone, “There’s an app for that” is the new catchphrase that places a heavy emphasis on the applications available on the App Store. The applications or applications are in “all categories, from games to business, education, entertainment, finance, health and fitness, productivity and social networks. These applications have been designed to take advantage of the functions of the iPhone such as Multi-Touch, the accelerometer , wireless and GPS “(Apple, 2009). Apple currently claims to have more than 25,000 apps available and counting.

The focus on the variation of the offered applications opens a lot to the target audience. Basically, there is an app for everyone. As some of the iPhone commercials advertise, you can find the snow conditions on the mountain, track the calories in your lunch, find exactly where you parked your car. You can find a taxi in a strange city, find your share of the bill for a table of 5, or learn how to fix a wobbly bookshelf. You can read a restaurant review, read an MRI scan, or just read a regular old book. These are just a few of the features that Apple has promoted through television commercials. IPhone applications offer all the functions one can imagine.

When the iPhone was initially launched, it was priced at $ 599. Still, hundreds of thousands of people rushed to buy the new phone, spending more than a third of what they would have expected if they had waited 3 more months. 3 months after the initial launch, Apple slashed the price of the iPhone to $ 399. This angered Apple’s loyal customers and consumers who bought the new phone a few months earlier. A year later, Apple reduced the price of the iPhone again to $ 199, 66% less than the original price.

In July 2007, Apple’s iPhone was all the hype. I think Apple’s decision to launch the phone at $ 599 was based lightly on greed. However, their product was the most innovative on the market, giving Apple the freedom to price the iPhone to whatever they wanted. Many believed that Apple had cut the price after discovering lower-than-expected iPhone sales. Apple, however, claims that the price cut was made “to stimulate holiday sales and predicted that Apple would meet its stated goal of selling its 1 millionth iPhone by the end of September.” (Dalrymple, 2007)

As with the product life cycle of any Apple cell phone or product, including Apple’s iPod, prices are often drastically reduced months after the initial launch. Technology products always compete against “the latest and greatest” while maintaining a relevant price in the market. If Apple hadn’t cut the price of the iPhone, the customer base would have shrunk quickly as many consumers are unwilling to spend $ 599 on a cell phone, no matter how many useful features the phone may have.

As the iPhone remains the number one smartphone, the product continues to grow, increasing size capabilities, increasing the number of applications available, and providing new features that are released through new iterations of the phone, continue to provide greater value. to the iPhone, while the price is still relevant.

At this point in the product life cycle, Apple continues to release improved iterations of the iPhone. Since most of the iPhone users are unwilling to buy a newer version of the iPhone due to the price, the target audience for the new generation phones is the new iPhone customers. With Apple’s installed base continuing to grow, they have found a way to generate recurring revenue from their existing customers through the sales of their app downloads. As more and more people buy the iPhone, Apple’s audience of new customers continues to decline. Fortunately for Apple, they have added another revenue stream that continues for the life of the product.

References

(2009). Apple iPhone. Retrieved April 26, 2009 from Apple

Dalrymple, J (2007, September 11). Lessons Learned from iPhone Price Cuts. PCWorld, Retrieved April 26, 2009, from http://www.pcworld.com/article/137046/lessons_learned_from_the_iphone_price_cuts.html

Silverman, D (2007-07-10). Apple’s silence helped the iPhone hype. Chron.com:Computing, Retrieved April 26, 2009, from http://www.chron.com/disp/story.mpl/front/4954824.html

Malley, A (2007, June 6). Apple, AT&T neophytes to define iPhone audience: report. AppleInsider, retrieved April 26, 2009, from the AppleInsider website

Mukherjee, A (February 28, 2007). iPhone under attack. Business Today, retrieved April 26, 2009, from the Business Today website

Baby Monkey (backing up on a pig) Game Review

If you’re looking for an iPhone or iPad game that’s both kid-friendly and challenging enough for adults, Baby Money (going backwards on a pig) from Kihon Games is just the game. It is the perfect game for families to share and compete with each other.

Baby Monkey was inspired by the viral YouTube video of a baby monkey going upside down on a pig. The video features a super catchy song by Parry Gripp, which is also the soundtrack for the game. After just a few seconds of playback, you will be singing the melody. But you won’t mind that it’s stuck in your head! The song almost never goes out of style.

The way the game works is that you control both the monkey and the pig. The left button makes the monkey jump and the right button makes the pig jump. You can also make them jump higher with some combinations of the two. This is an endless runner, so the goal is to get as far as possible before dying. You also have to collect bananas, jump over obstacles, and make sure the monkey is in the air when the pig crashes into the obstacles. You will encounter all kinds of obstacles, from Nom Nom Hamsters to witches, zombies and even space unicorns.

Besides bananas, there are also coins, or Monkey Bucks, to collect. With these coins, you can buy costumes (such as the Halloween costume and the Super Monkey costume) that offer bonuses, as well as wings that allow you to continue a game once when you die. If you need more coins, there are also Tapjoy offers, where you can earn Monkey Bucks for watching a short video or subscribing to a service. It can also help developers buy Monkey Bucks through IAP.

The 2D graphics are top-notch and visually pleasing. The cute creatures’ facial expressions are adorable enough to keep you coming back for more just when you thought you had enough. The pig is fiercely trying to get the monkey off his back, and when he succeeds you will see stars surrounding the monkey’s stunned head.

The developers also add holiday themes to the game, such as Halloween and Christmas. If you shop for the costumes with Monkey Bucks, you can see the dynamic duo in festive dress as they race through a holiday-inspired backdrop. Christmas trees and Jack-o’s lanterns even appear in the regular theme to add variety.

Baby Monkey has a lot to offer, especially for fans of endless runners. If you’re looking for a family-friendly game with adorable critters and a fun musical theme, look no further than Baby Monkey (going backwards on a pig). How can anyone pass up a game with a name like that?

Fly fishing in El Salvador

Fly fishing in El Salvador is an adventure for fly fishermen around the world. For those who have experienced fishing in Patagonia, Alaska and Canada, a fly fishing adventure awaits in this unexplored territory.

There have been several fly fishermen asking about the big picture along the Salvadoran coast for fly fishing and luckily some good men have traveled to San Salvador to explore the territory in person. As a surprise, the experience has been incredible and surreal in all respects, as skilled fly fishermen with an art in the mastery of trout and salmon casting their flies in the waters of the estuary and the reef ecosystem end up reeling in a roosterfish or a Spanish mackerel to name a few species. There is a wide variety of species to target, such as snook, croaker, snapper, horse mackerel, barracuda and marlin, and this is when the adventurer takes on a greater dose of excitement. There are very few fly fishermen in El Salvador, but luckily travelers who have flown to El Salvador have brought their fly gear and taught Salvadorans about the beauty of the sport. There are several key points with abundant mangroves along the Salvadoran coast for fly fishing in the calm waters of the estuary; Barra de Santiago, Estero de Jaltepeque, Bahía de Jiquilisco and Barra Salada, to name a few. For fly fishermen looking to use a heavier rod, there is also the ocean near the estuary to go and fish for roosterfish, skipjack tuna, yellowfin tuna, barracudas, wahoo, marlin and horse mackerel and of course for flies. more adventurous. Anglers always have the challenge of the open sea in search of mahi-mahi and sailfish.

For more information on fly fishing, visit http://www.fishelsalvador.com

OVERVIEW OF THE 7 (a) SBA LOAN GUARANTEE PROGRAM (the PAYMENT CHECK PROTECTION PROGRAM)

On March 27, 2020, the President enacted the next phase of action the federal government is taking with the goal of providing financial relief to the American people and businesses in response to the economic consequences of the COVID-19 pandemic. This “third phase” legislative act is called Coronavirus Aid, Relief and Economic Security Act (the CARES Act).

One of the centerpieces of the CARES Act is the provision of $ 349 billion for small businesses through loans backed by the federal government under a modified and expanded loan guarantee program of the Small Business Administration (SBA) 7 ( a) called the Paycheck Protection Program. Congress has designed the program to make funds available to qualifying businesses quickly through approved banks and non-bank lenders.

KEY POINTS:

Under the CARES Act, qualifying businesses include businesses with up to 500 employees or that meet the applicable size standard for the industry as provided by existing SBA regulations. Most small businesses will qualify.

Loans will be provided through banks, credit unions, and some non-bank lenders approved by the SBA and the Treasury.

Borrowers can borrow 2.5 times their monthly payroll expenses (during the 1-year period before the loan is made (see page 18)), up to $ 10 million.

Applicable uses of loan proceeds include: (1) qualified payroll costs; (2) rent; (3) public services; (4) mortgage interest and other debt obligations; (5) group health care benefits, including health insurance premiums; (6) interest on any other debt obligation incurred prior to the covered period (February 15, 2020 and ending June 30, 2020). (see page 10 for the period covered)

Loan forgiveness is available for funds used to pay 8 weeks of payroll and other qualified expenses.

What companies qualify for the paycheck protection program?

Generally, any business operating on February 1, 2020 with fewer than 500 employees is eligible.

What is the maximum loan amount a business can receive through the paycheck program?

Each business can receive whatever is less than $ 10 million or the sum of 2.5 times the average total monthly payroll costs of the previous year.

What can a company use program funds for?

Businesses can use Program loan funds to cover expenses, including the following:

Payroll costs, including employee compensation which would include severance pay, required payments for group health care benefits (including insurance premiums), retirement benefits, and state and local employment taxes.

Interest payments on any mortgage or other debt obligations incurred before February 15, 2020 (but not any payment or prepayment of principal).

· Rental.

· Utilities.

However, the money cannot be used for compensation of individual employees, independent contractors, or sole proprietorships who exceed an annual salary of $ 100,000; compensation of employees with a primary place of residence outside the US; or leave wages covered by the Families First Coronavirus Response Act (HR 6201) that has already been passed and will take effect on April 1, 2020.

How are loans made under this program different from traditional 7 (a) loans?

Unlike traditional SBA 7 (a) loans, no personal collateral will be required to receive funds and no collateral needs to be pledged. Similarly, the CARES Act waives the requirement that a business show that it cannot obtain credit elsewhere. Instead of these requirements, borrowers must certify that the loan is necessary due to the uncertainty of current economic conditions; that they will use the funds to retain workers, maintain payroll, or make rent, mortgage, and utility payments; and that they are not receiving duplicate funds from another lender for the same uses.

Principal, interest and fee payments will be deferred for at least 6 months, but no more than 1 year. Interest rates are capped at 4%. The SBA will not charge any annual or guarantee fees for the loan and not all prepayment penalties will apply.

The SBA has no recourse against any borrower for non-payment of the loan, except when the borrower has used the loan proceeds for prohibited purposes.

What are the loan forgiveness requirements?

Borrowers are eligible for loan forgiveness for 8 weeks from the loan origination date for payroll costs equal to the cost of maintaining payroll continuity during the covered period; (Note: Eligible payroll costs do not include annual compensation in excess of $ 100,000 for individual employees); mortgage interest payment: rent; and utilities.

The loan forgiveness amount may be reduced if the employer reduces the number of employees compared to the previous year, or if the employer reduces the salary of any employee by more than 25% as of the last calendar quarter. Employers who rehire workers previously laid off as a result of the COVID-19 crisis will not be penalized for having a reduced payroll as of February 15, 2020 and through June 30, 2020).

Borrowers must request loan forgiveness from their lenders by submitting the required documentation and will receive a decision within 15 days. If a balance remains after the borrower receives the loan forgiveness, the outstanding loan will have a maximum maturity date of 10 years after the loan forgiveness request.

How does a business apply for a loan under the Paycheck Protection Program?

We look forward to additional guidance from the SBA on how to apply for Program loans, including additional resources on the SBA website on how to find a qualified lender. Borrowers with existing relationships with banking institutions may wish to contact these individuals for information on how to apply for loans under the Program.

Does the CARE Act Affect Other Available Small Business Loans?

Yes. The maximum loan amount for an Express Loan is increased from $ 350,000 to $ 1 million.

The CARE Act also expands the eligibility of borrowers who request a Emergency Economic Injury Disaster Loan (EIDL) Grant. Emergency Economic Damage Disaster Loans are available to most small businesses, sole proprietors, or independent contractors. In addition, the law exempts the requirements that (1) the borrower provide a personal guarantee for loans of up to $ 200,000, (2) that the eligible business is in operation for one year prior to the disaster, and (3) that the borrower cannot to get credit elsewhere. The SBA also has the authority to approve applicants for low-value loans solely on the basis of their credit score or “appropriate alternative methods of determining the applicant’s ability to pay.”

What are the terms of an EIDL?

Up to $ 2 million

Interest rates: set at 3.75% for small businesses

Term: Term loans of up to 30 years, structured with a principal and an interest deferral of 12 months.

No prepayment penalty

Collateral: Required if the loan exceeds $ 25,000. Real estate is preferred, but a loan will not be turned down for lack of collateral. However, all available guarantees will be required.

How do you apply for an EIDL?

EIDLs are handled directly by the SBA. The company can submit an application on paper or online. The online application can be submitted at the following website: https://disasterloan.sba.gov/ela.

Additionally, the company can call the SBA Customer Service Center at 1-800-659-2955 or email [email protected] for more information on the program or for details on how to submit an application. on paper.

Most significantly, for borrowers seeking an immediate influx of funds, borrowers can receive an emergency advance of $ 10,000 within three days of applying for an EIDL grant. If the application is denied, the applicant is not required to repay the $ 10,000 advance. Emergency advance funds can be used for payroll costs, increased material costs, rent or mortgage payments, or to pay obligations that cannot be met due to lost income.

Borrowers can apply for an EIDL grant in addition to a loan under the Paycheck Protection Program, as long as the loans are not used for the same purpose.

Is relief available for businesses with pre-existing SBA loans?

Yes. The SBA will pay principal, interest, and associated fees on certain pre-existing SBA loans over 6 months.

Conclution

There are many moving parts of the CARES Act and its SBA disaster assistance programs that will continue to evolve more clearly over time. The talk on Phase IV of the COVID-19 stimulus relief has already begun.