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Showing posts from November, 2017

Recaps For Small Businesses Good Or Bad?

Recaps for Privately Held Businesses, Good Or Bad? November 20, 2017  by  Michael Shea PA   (Edit) What’s a Recap and Why Should I Care? Definition: A Recapitalization or Recap is a financing technique used typically by private equity investors to invest in privately-held businesses that allow the existing owner to restructure the debt and equity of their company to either obtain new capital for future business growth and/or to reduce their personal financial risk by taking some chips off the table. Recaps are typically structured in such a manner as to repay any existing debt that has been personally guaranteed by the existing owner. This is one of the main benefits in that it reduces the owners’ personal financial risk from their personal guarantees on bank loans, capital leases, etc. If a “Black Swan” event occurs and the business flounders, the owner has at least taken substantial money off the table and avoided losing everything. Recaps include a reduction in the owne

Tips When Selling Your Franchise

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Tips for Selling Your Franchise – Michael Shea P.A. November 16, 2017  by  Michael Shea PA If you have decided it is time to sell your existing franchise, an experienced broker like Michael Shea P.A. can help. Transworld has many years of experience working with franchises and we offer a franchise resale program to help you successfully sell your franchise. Our partnership with United Franchise Group means that we have a vast understanding of the franchise business. We know the ins and outs and can put that knowledge to work for you throughout the process of selling your franchise. In franchise sales terminology, the purchase of an existing unit is referred to as a “resale.” All franchisees have a life cycle and almost everyone who buys a franchise will at some point want to sell it. Resales are very common and have neither a negative or positive reflection on the franchise network. Selling a franchise offers potential buyers some distinct advantages, however, without s

Business Brokers: How to choose the right firm for your business sale

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Business Brokers: How to Choose the Right Business Brokerage Firm November 8, 2017  by  Michael Shea PA Buying or selling a business can be a stressful time. Choosing an adviser to help you through the critical steps in the process is key to a successful transaction. From research to close, it is important to understand what your business broker will do for you, know the costs associated with hiring a broker, and conduct a careful evaluation of their track record and success. What Your Business Broker Will Do for You: A broker is an individual who works as part of a business brokerage firm and is experienced in both business and business sales. Business brokers put buyers and sellers in touch with one another and act as a helpful mediator, promoting a productive discussion that ultimately benefits both parties. Buyers: If you are buying a business, a business broker will work with you from the very beginning to understand your interest in purchasing a business, educat