Springtime Fever?

ATLANTIC HIGHLANDS, NJ – April – As unlikely as it appears, spring does indeed increase transaction flow. Whereas one would think that numbers don’t lie and result in the same analysis throughout the year, it’s the springtime that gets the juices flowing. And similar to the real estate market (although a quite different business altogether), we see sellers and buyers more motivated to “do deals”. Most importantly though, in these times, is for both parties to do a thorough “due diligence” on each other, in particular, if there is ultimately a partnership involved. Key issues on the buyer’s side remain, (i) has this been a stable business for the past years, and how has it weathered past recessions; (ii) are their loyal and capable employees in place; and (iii) is there a true value added for the customers/clients of the business, thus, will they stay with the business after the acquisition. The buyer, however, has some questions of his own to address, most importantly, (a) is the buyer qualified to run a business like this; (b) does he or she have sufficient collateral as security for the seller’s note; and (c) does the buyer have a plan in effect to make regular payments to the seller. Obviously, there are many more questions to be addressed, and we will be happy to discuss specific scenarios in varying situations. With more than 25 years in the business, we are certain that we will find an answer to your concerns.

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