The process of investigating a business for sale is commonly referred to as “due diligence”. In layman’s terms, “due diligence” is essentially the exercise of common sense, and it is the difference between the beginning of a successful venture and a complete disaster. Proper due diligence requires a thorough evaluation…
In this writer’s experience, the most common cause of business failure is the lack of a written agreement between partners. No one ever enters into business with a friend or trusted associate thinking that the deal will collapse around them. Yet, business relationships routinely run into difficulties, and without a…
Continued from Considerations When Purchasing a San Diego Business, Part One. The Valuation: Add your own critical assessment to the appraiser’s valuation by personally reviewing the company’s records. For small businesses, the valuation can be done without the assistance of an appraiser if necessary. The process of conducting a thorough…
As with any new venture, the purchase of an existing business is fraught with risk. Is the business viable? Does it have growth potential? What are its hidden weaknesses? Is the purchaser experienced enough in the company’s business? Is current goodwill and reputation dependent on existing ownership? Is the revenue…
San Diego has seen a steady stream of young entrepreneurs starting up their own businesses over the last few years. This is in large part attributed to the collapse of the financial markets and the ensuing recession. Professionals in transition and the recently unemployed see starting their own business as…
The decision whether to purchase a franchise requires thoughtful consideration of numerous factors. It is common for prospective purchasers to be blinded by the success of the franchise’s national reputation. A national reputation with hundreds of profitable locations, however, does not guarantee that every potential location will be profitable. Before…
As with the purchase of any business, purchasing a franchise in San Diego requires careful consideration of the company, its operations and profitability and the economic climate. Franchise opportunities abound and they offer purchasers the unique ability to operate a business using an existing and successful business model. With proven…
San Diego businesses typically invest significant resources in the development of customer lists, but often fail to adequately protect them. Companies may believe that such lists are automatically protected “trade secrets”. However, without affirmative steps designed to ensure that confidential lists fit within the definition of a trade secret, customer…
Common Area Expenses (or CAM expenses) are nothing new in the commercial leasing business. However, new business owners are often caught off guard by the thought of the additional expense that sometimes is as high as the base rent itself, especially where there is so little control over how the…
“Piercing the Corporate Veil” is a well-known phrase. To the average American, it conjures up visions of corporate giants being slain by David. This pejorative understanding has little practical value in today’s business world. In fact, “piercing the corporate veil” (holding the principals of a corporation or limited liability company…