The case study “Too Hot to Hold” (Katz & Green, 2014, pg. 182), describes a business buying opportunity available to Gwendolyn Bonnefille, a struggling single mother. The business for sale is a small, apparently home-based, hot sauce making business. Sly, the current owner, makes, bottles, and labels the Caterwauling Coyote hot sauce from his kitchen, and then distributes the finished product to gift and specialty shops in Texas (Katz & Green, 2014). In her quest to purchase the business, Ms Bonnefille discovers that there are some inconsistencies between the business’s financial statements and the Sly’s personal tax returns. The case study provides the Sly’s explanation for the discrepancies and provides some information regarding the terms of the business sale. The case study then goes on to ask three questions regarding the Sly’s explanation of the financial discrepancies, the accuracy of the selling price, and other information the Ms Bonnefille should consider prior to making a decision to purchase Caterwauling Coyote from its current owner (Katz & Green, 2014). Although I might not address the questions in order, this essay will address all of these concerns and evaluate whether this purchase may or may not be a good option for the Ms Bonnefille.
According to Katz & Green, 2014, one of the first hurdles in buying a business is finding one that meets the “experience, education, and skills” (pg. 165) of the buyer. Additionally, Katz & Green (2014) point out that when purchasing a business it should be in an industry in which the buyer has some experience. The case study is not specific in this regard. Ms Bonnefille’s current job is in accounts receivable (Katz & Green, 2014), which, in my opinion, is far different from making ...
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Biery, M. (2014, February 2). Private-company growth slowed in 2013 - Forbes. Retrieved June 14, 2014, from http://www.forbes.com/sites/sageworks/2014/02/02/private-company-growth-slowed-in-2013/
Katz, J. A., & Green, R. P. (2014). Entrepreneurial small business (4th ed.). New York, NY: McGraw-Hill/Irwin.
Ochse, G. (2013, August 15). Things to think about when buying a business. Finweek, 51. Retrieved from http://web.b.ebscohost.com.ezproxy.denverlibrary.org/ehost/pdfviewer/pdfviewer?sid=c4507653-e8f4-4f58-8882-d5d970a15628%40sessionmgr110&vid=2&hid=103
One look at the common-size income statements for these companies can tell a story. While Jones Apparel Group was lagging at year ended 1998, even with a restructuring charge on Liz Claiborne’s income statement, 1999 was a different story. Huge growth at Jones lead to revenues double of that one year ago while Liz, while increasing, was quickly falling behind. The growth for both of these companies continued into the year ended 2000, but Jones Apparel Grou...
The financial challenge facing the company in the managing international acquisitions simulation was to decide which bank presented the best choice for acquisition. Some criteria was finding the bank with the best fit, determining the financial stability of the country, and business valuation. The choice was not solely based on financial criteria such as assets, liabilities, and financial position but included other criteria such as the customer base, competitive position, number of branches, and product portfolio. The use of discounted cash flows was then employed to arrive at a final bid price.
Target Corporation. (2011, March 11). Target 2010 Annual Report. Retrieved March 9, 2012, from http://investors.target.com
Allen, K. R. (2012). Launching New Ventures: An Entrepreneurial Approach. 6th Ed. Mason, OH: Cengage Learning.
The key elements of business success are the people involved, the location, the supplies that are available, the plan that’s made as well as cost.
In order to be able to find and assess opportunities, risks and profitability in the early stages of acquisition, we conduct extensive analysis of the scope of business operations。
In the article, "Strategies for Enhancing Small-Business Owners' Success" by Susan Turner and Al Endres, it is claimed that there is no specific reason as to why small businesses are failing in today's America. They believe, however that two factors can cause the demise of small businesses. These factors are small business financing and the marketing plans associated with those businesses. Small business owners are finding it increasingly hard to acquire funds to start up and help maintain a foothold in the business world. The authors state that this is due to the rising risks of propositions for investors and acknowledge that small businesses have to resort to using their own resources such as their own funds and bootstrap financing. Another
There comes a time in a business owner’s career where they will be faced with the decision of whether to expand or to focus on other goals. Goals that focus on creating a healthy work environment, providing great customer service, and giving back to the community. There are a number of small business owners that have decided not to expand and have ultimately created small sustainable companies that are thriving in today’s market. Bo Burlingham discusses the principles of a “Small Giant” and the “mojo” that these small businesses posses in his book Small Giants. All of the businesses that Burlingham describes in the book are privately owned, and their primary goal is not the growth of the company but being the best at what they do for their customers. The principles discussed by Burlingham are relatable and useful when recruiting and selecting a sales force team.
Data are grouped into 16 categories by size of assets in each industry. About 180 lines of business are covered.Norms in actual dollars for revenue and capital factors such as net receivables, inventories, and total assets are given. It also gives average operating costs in percent of net sales for: cost of operations, pensions and benefits, comp
Companies.” Wall Street Journal, Eastern edition ed.: 1. Nov 26 1999. ProQuest. Web. 19 Apr. 2014.
Hopson, J. F., & Hopson, P. D. (2014). Making the Right Choice of Business Entity. CPA
The Body Shop International case is an interesting case study into the miscommunication of owners and stockholder interests with regard to financial conditions. Anita Roddick, the founder of The Body Shop had no financial experience and thought that all she needed to do was expand her business and the financing would take shape as she developed her business. While Anita’s product concept of a natural skin-care line was good; her lack of experience in financial matters took its toll on her business.
In the United States, small businesses play a vital role in building the economy. Today, there are over 28 million small businesses in America. What exactly is considered to be a small business? Initially, the Small Business Administration (SBA) deemed any manufacturer with 250 employees or less to be a small business, but today it considers companies with fewer than 500 employees to be small. Today’s marketplace is an excellent opportunity for the budding entrepreneur. Today’s small business owner has a wealth of opportunities to help him/her gain economic success in today’s marketplace. (SBA)
Sanders, M. 2014. What Is a Company Merger?. [online] Available at: http://smallbusiness.chron.com/company-merger-21903.html [Accessed: 8 Mar 2014].
The purpose of this final element is to study whether purchasing an existing business is a sound investment for your business. It requires your organisation to answer questions such as: