July 2010 Newsletter
Managing Your Transaction
Anyone who has a know-it-all cousin or brother or father or teenager understands that it is best to use your own common sense, life experiences, and judgment in conjunction with the suggestions of others to make the wisest decisions. These people may very well have something important to contribute. However, would you follow them down whatever path they lead you without question? Of course not.
The same is true in business. Advisors such as attorneys, accountants, and financial planners need to be managed. You pay them to offer their opinions and steer you toward a decision that they feel is appropriate for you. And, if you inquire with multiple advisors, each will likely offer a somewhat differing opinion. The key is to ensure that your advisors understand your ultimate goals and offer suggestions that enable you to progress in that direction. An attorney can create a plan designed to protect you from ever incurring risk. That plan, however, will likely also keep you from ever reaping reward. Rather, it is probably more appropriate to request advice that will mitigate your risk while still allowing you to accomplish your goals. For example, if you have made a decision to buy a business, you would want your attorney to help you balance the risk/return equation.
When seeking the advice of an attorney in the purchase of a business, you should insure that the attorney has experience dealing with the acquisitions of small businesses rather than specializing in Real Estate, Traffic, or Criminal Law. There are many fantastic attorneys who have built their practices around small business. They understand well how to write and review Asset Purchase Agreements, and can offer sound advice to mitigate risk throughout the purchase process. Apex Business Advisors can put you in touch with experienced attorneys who can guide you through the acquisition legalities.
Banking Update:
Although we are still experiencing a tough environment for SBA lending, there are banks that are currently approving transactions. Down payment requirements have edged up, and the business financials will most likely need to show steady or growing revenue trends. The government regulators seem to be looking over everyone’s shoulder, so lenders continue to be very conservative.
Proper preparation for the loan process is more critical than ever. Compiling an appropriate loan package along with a solid business plan, sound projections, and a good understanding of the business being acquired will be critical to receive funding in the current lending environment.
Recent Transactions Completed
Auto Detail Business – Independence, MO
Liquor Store – Lee’s Summit, MO
Orchard – Harrisonville, MO
Parking Lot Sweeping – Wichita, KS
Restaurant – Kansas City, MO
Bar and Grill – Overland Park, KS
