Morgan & Westfield - Deal Talk

So you are talking with several interested buyers and a few of them asked you for tax returns, bank statements and some other sensitive information. What should you do? How should you handle this situation? Should you show these documents without having an offer in hand? Before receiving an offer, you should be cautious with what you show to buyers. Certainly be helpful and engage with the buyers but do not give them everything they ask for. At some point, you should politely and tactfully ask them to present you with an offer. In this podcast, we guide you in handling situations about releasing confidential information requested by a buyer.

As a general rule, you should not invest in new equipment or other hard assets when in the process of selling your business, unless it immediately increases your cash flow. Improvements to cash flow can come from both increased revenue and decreased expenses. Why shouldn’t I invest in new equipment or other hard assets? Reason: You are highly unlikely to recoup your investment upon selling your business. Buyers value businesses based on cash flow. They multiply cash flow to arrive at a business value. There are only two parts to the equation – the multiple and cash flow. They may appreciate your investment in the new equipment but they are unlikely to assign any value to it. If the buyer is considering two similar businesses, then the age and condition of the equipment may be a determining factor, but cash flow always trumps everything else.

There are many misconceptions about private equity, like the idea that all private equity deals require controlling interest of a company in order to make an invest in it. However, that is often not the case. Many private equity firms are more interested in the right long-term investment opportunities for their portfolios. In fact, private equity investors have become more discerning and very selective about the companies they work with. Don Charlton, operating partner and managing director at Argosy Private Equity, joins Jeff Allen to dispel the common myths surrounding private equity. He'll also talk about what is important to PE firms today when determining which companies to invest in.

What is the difference between succession planning and planning your exit strategy? The distinction is important, particularly if you decide not to sell your company outright. Knowing who, specifically, will take over after you leave can help the company to transition from one leader to the next more quickly while allowing it to continue to run smoothly during the entire process. On this edition of "Deal Talk," Jeff Allen welcomes Chicago-based business strategist Carl Seidman, who has advised many of America's top organizations. He will be sharing what he believes are the essential keys to effective succession planning.

In this exclusive interview, we talk with Mark Liston, President of Glass Doctor. Mark joined Glass Doctor as the vice president of operations in April 2010. Today, we discuss about the reasons for choosing the Glass Doctor as a franchise. Mark's experience in franchising began in 1981 when he joined Kinetico Incorporated and worked with Kinetico dealers throughout the world. He is also very involved in the International Franchise Association (IFA). He currently serves as chairman of the Board of Governors for the Institute of Certified Franchise Executives having earned his CFE in 2005.

In this exclusive interview, we talk with Phil LeBlanc, VP of Franchise Development at ComForcare Franchise. ComForCare is one of the nation’s leading home care franchise companies  operating over 190 territories throughout the U.S., Canada and the United Kingdom. Today with Mr. Leblanc, we talk about the benefits of becoming a master franchise partner for ComForCare. Phil LeBlanc has been in franchise development for 25 years. The first 15 years, he spent most of his time in the travel industry working for some very large travel-focused franchise companies. He also helped start some franchise operations within the travel industry. LeBlanc then served as a VP of Development for an organization in the Detroit area focused in the commercial printing and sign making franchise arena.

In our modern society, appliance repair is one service that will always be in demand.  Despite competition from independent and corporate appliance repair companies, Mr. Appliance has retained its title as the number one appliance repair franchise business in America.  That’s good news for its franchisees and those entrepreneurs looking for a stable franchise opportunity, whether they have previous appliance repair knowledge or not.  This company works with its owners to train them and help them recruit top-level technicians, and there are other ingredients in Mr. Appliance’s recipe for success too.  To find out more, listen to our discussion with Gary Landon, Mr. Appliance’s Director of Franchise Development.

Sometimes business owners are too close to their companies to see things as they really are, and by the time they begin to understand why their company may be failing, the damage may be insurmountable. The key, according to “Deal Talk’s” guest on this edition, is to have someone (or a team) with no emotional attachment to drill down and discover the causes of financial losses that could result in eventual bankruptcy. How do you prevent bankruptcy, become profitable and rebuild lost value in your business? Find out during Jeff Allen’s chat with CPA and business advisor Charles Schnaid.

When was the last time you told a story? Can you spin a good yarn? I'm not talking about a bedtime story or a clever anecdote, but an honest to goodness true story about yourself, about your business. The reason I bring this up is because my guest on this edition on Deal Talk believes it's important for you to communicate your story, particularly when you're positioning your business for sale, whether that's ten months from now, ten years from now, or further down the line. His name is John Chang and he's CEO or a Chief Pilot as he calls himself at Bush Pilot Marketing in Los Angeles.

Work-from-home franchises continue to grow in popularity among entrepreneurs, but what separates the best opportunities from the rest?  Keeping your own hours? Not having a staff to pay? No inventory to manage and ship?  Those may be a few advantages, but as our guest tells you, the program the company has in place to ensure your success is just as important.  Beth Wheeler is the Director of Franchise Development for Money Mailer, and she joins host Emery Orosz to discuss her 20 years of success as a Money Mailer franchise owner and how the company works with entrepreneurs to operate and grow their own successful Money Mailer franchise from the comfort of their home office.

If you're a business owner looking to relocate or expand your operations, you've tuned in to the ideal episode because we're going to speak with an expert in the area of commercial real estate, to give us some guidance and answers to questions that will possibly help you with your property search. That all in itself is a full-time job or can be certainly and it's one that you can't take lightly. My guest named today Fred Encinas, he is the Senior Vice President at NAI Capital, a commercial real estate and property management firm servicing the greater Southern California area. 

Most small businesses operate without a chief financial officer because the business owner and/or their bookkeeper or accountant handles the financial responsibilities themselves. However, it doesn’t mean your company would not benefit from the services of a CFO, particularly if you are planning the sale of your business in the near future. In fact, CFOs are available on a part-time, temporary basis, and the experience they bring can be invaluable in helping a business owner put their organization in a great position for a successful transition. Our guest talks about his extensive experience as a CFO and his own involvement in several M&A deals. Meet financial expert Raz Silberman on this edition of “Deal Talk.”

Asset sale or stock sale? The seller favors one; the buyer favors the other. Why? The distinction between asset sales and stock sales seems simple, but the differences are important, because each type of sale has its advantages, although one side may benefit financially more than the other depending on the type of deal. The key is knowing whether an asset or stock sale is right for your particular situation. Andrew Gantman, CPA and owner of Gantman & Associates in Los Angeles, joins us for an important discussion of these two types of sales, including understanding the kinds of income your assets generate — regular income or capital gains — and the potential tax implications in an M&A transaction.

What we're going to talk about a little bit about today, the importance of efficient operations and effective communication, because I don't really think you can have one without the other. They may sound like two different things, but really, for today's business owner in the age of the internet it's really taken over as kind of a primary source of communications among the business owner, his clients, his prospects, his staff in some cases, and today's guest knows a lot about this. He spent 22 years in fact in IT-related capacities, his name is John Ragsdale. He's the president of Innovative Resources Group and RPR Hawk Manufacturing.

You know the importance of marketing your company’s products or services, and depending on the size of your operation, you may even handle some or most of the marketing responsibilities yourself. Now, how much of that time do you spend in your online marketing efforts? How much? Maybe 25%, 50%, all of it? Good for you. My guest on this edition of Deal Talk is here to reinforce the notion that the old tried and true marketing strategies are not as effective anymore, particularly if you're interested in adding true value to your business. Jan Rautenbach is the president of Capstone Advice, based in the Johannesburg area in South Africa and his company provides leading edge marketing services and support for clients all over the world.

Businesses that are the targets of private equity investors won’t command the value they deserve because of lost revenue opportunities. Often times, lost revenue is due to inefficiencies in a business’ operations.  Our guest on this edition of “Deal Talk” makes it his mission to help business owners uncover operational inefficiencies in order to increase productivity, resulting in substantial revenue growth and greater EBITDA.  Tim Van Mieghem is a partner at The ProAction Group, which works with private equity firms to perform buy-side operations, due diligence, and post-close assistance to help business owners maintain operational excellence.

After you’ve sold your company, you’ll face the reality of having to pay capital gains tax on the proceeds, but there are ways to minimize these taxes. These methods can be discussed during the M&A process between the buyer and seller. In fact, the structure of the deal itself may be critical to help the sell-side business owner reduce their tax exposure.  Ms. Meghan Jodz, Sr. Tax Manager at Grant Thornton, LLP, talks with Deal Talk’s Jeff Allen about a “Tax Shield” and how both buyers and sellers of businesses can work together to take advantage of improved tax efficiencies to minimize the amounts they have to pay the IRS.

Expanding your operations and brand through franchising is one way to grow your business. It involves using the money and managerial talents of others to open and operate locations in desirable markets. However, just because you have a successful business doesn’t mean it will pass the test as a “franchiseable” or franchise-ready business.  On this edition of “Deal Talk,” host Jeff Allen asks our guest expert how a business owner can determine if they and their business are ready for growth through franchising. Mark Siebert, CEO of iFranchise Group in Homewood, Illinois, discusses all the details and provides questions (and answers) you need to consider if you’re thinking about franchising your brand.

Every new business owner wants their venture to be a big success, but for many, getting started on the right foot is often the biggest challenge.  From having an understanding of what your brand is and the importance of determining your corporate culture to the development of your product or lines of service, the questions you need to answer are critical in order to build a successful business you can one day sell at a premium value.  James Bottom is the Director of Innovation and Entrepreneurship at the University of Southern California and the founder of Incubatrix in Los Angeles. He and Jeff Allen will discuss the steps you need to take and the pitfalls you need to avoid to help your new business thrive.

In this edition of deal talk, we're going to talk to you buyers out there. If you're considering buying an established small business that you've had your eye on and you know you're going to need financing, you may want to listen up. Specifically, we're going to talk with an expert about funding through the SBA, or small business administration, and some misconceptions concerning the process, expectations, and results of working with the SBA to help you finance your transaction. To do that, I'm going to lean on our guest expert in this area, Mr. Steve Mariani, he is a business finance advisory at Diamond Financial, based in Rollin, North Carolina. They help business owners and buyers Nationwide.