The Exit Planning Institute Opens Northeast Ohio Chapter The Exit Planning Institute (EPI), NACVA’s Exit Planning partner and issuer of the Certified Exit Planning Advisor (CEPA) credential, has opened a new chapter that will be serving the Cleveland and Akron region in Northeast Ohio. The chapter president will be Christopher M. Snider, a partner at Aspire Management in Cleveland. Christopher M. Snider, CEPA and Exit Planning Institute Northeast Ohio Chapter President The chapter currently has approximately 30 members. Its mission is to build collaboration among professional advisors in order to promote common business interests, develop educational events for business owners and…
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Chart: The Cost of Buying Small Business Companies Scott Shane at Small Business Trends reports: Many people think buying a business is expensive. But, actually, the typical private company sells at a low price. According to BIZCOMPS, Business Valuation’s data base of private company sales, the median price of the 12,022 companies sold since 1995 on which Business Valuation has data was $166,000, less than half of one year’s revenue. As the chart below shows, only 5.8 percent of private businesses sold for more than $1 million. Nearly two-thirds sold for less than $250,000. Why does it cost so little to…
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Buying an Established Business The Wall Street Journal’s “Running a Business” blog analyzes the benefits of buying vs. building: If you’re interested in entrepreneurship, but lack ideas or time to create a new business, buying an established company may be a wise alternative. You’ll inherit a working infrastructure complete with resources you’d otherwise have to secure on your own, such as equipment and employees. You’ll also ideally be taking over a known brand built on a positive reputation over many years’ time. Buying a business typically does require more capital upfront than if you were to build one anew. But…
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Business-For-Sale Market Heats Up So writes Angus Loden at The Wall Street Journal blog In Charge: On the challenges of entrepreneurs managing their businesses. Sales of small businesses rose 8% in the second quarter over the same period last year, hitting the highest level since the closing months of 2008, with a growing number of smaller firms finding buyers, according to business-broker data. Getty Images From April to June, sales of 1,198 small businesses on the market closed, up from 1,106 in the second quarter of 2010, according to BizBuySell.com, an online small-business marketplace based in San Francisco. The median sale…
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SEC Wakes Up to Reverse Merger Companies Weeks after several Chinese reverse-merger companies have stopped trading in the US amid widespread fraud allegations, the Securities and Exchange Commission has issued a warning that, hey, maybe investors ought to think twice about those reverse-merger companies. Okey doke! Mark Gongloff relays from the Wall Street Journal Law Blog. The Securities and Exchange Commission issued an investor bulletin that said “there have been instances of fraud and other abuses involving reverse merger companies” and that investors “should be careful” when they consider investing in the companies’ stocks. The SEC has said it is investigating the…