Small businesses may be ripe for purchase

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					                                                            SMALL BUSINESS


Small businesses may be ripe for purchase
                                                                                                                                                           time where it’s difficult to grow organically, many
                                                                                                                                                           times growing by acquisition is the best option.”
                                                                                                                                                                In other cases, investors may see an
                                                                                                                                                           opportunity to develop a small business in
Buyers with cash can find discounts on acquisitions in the current economy                                                                                 ways that the current owners might not have
                                                                                                                                                           the means to achieve on their own, Goldberg
          BY JOÃO-PIERRE S. RUTH                            managing partner with Sun Mergers & Acqui-    compared with two years ago, when owners         said. Investing capital or providing expertise
THE PINCH THE ECONOMY put on valuations                     sitions in Hasbrouck Heights. He and other    expected to see top-dollar offers.               can build up these businesses for a more prof-
means potential buyers may find deals on their              business valuation experts find that buying        “There are more and more companies strug-   itable future exit. “There are a number of pri-
acquisition targets, said Stephen J. Goldberg,              small businesses can be more feasible now     gling independently,” Goldberg said. “During a                ➤➤ See    PURCHASE on page 23




                       We Can Make A Big Difference                                                                                                        BOSS Think long term
                                                                                                                                                           ➤➤ Continued    from page 21
                     In Financing Your Small Business                                                                                                      enough reason on its own to start a business.
                                                                                                                                                           “You must have an entrepreneurial spirit to
                                                                                                                                                           start a business,” she said. “Just because you
                                                                                                                                                           got laid off doesn’t mean an entrepreneurial
                                                                                                                                                           bug is going to bite you.”
                                                                                                                                                                Getting started can be the hard part. Wag-
                                                                                                                                                           man said even a one-person business requires
                                                                                                                                                           funding and planning. The business cannot
                                                                                                                                                           advance from the idea stage without a strategy
                                                                                                                                                           to generate revenue. Wagman suggests new
                                                                                                                                                           entrepreneurs seek support networks of their
                                                                                                                                                           peers to share information, and discuss their
                                                                                                                                                           mutual problems and needs. “People said what
                                                                                                                                                           made Silicon Valley a success was the fact the
                                                                                                                                                           entrepreneurs had a bar to meet at,” he said.
                                                                                                                                                                Small businesses fail, Wagman said, if the
                                                                                                                                                           entrepreneur, fresh from the corporate envi-
                                                                                                                                                           ronment, does not build up the resources to
                                                                                                                                                           operate their own company.
                                                                                                                                                                Robin voiced concerns tha
				
DOCUMENT INFO
Description: THE PINCH THE ECONOMY put on valuations means potential buyers may find deals on their acquisition targets, said Stephen J. Goldberg, managing partner with Sun Mergers & Acquisitions in Hasbro uck Heights. "There are a number of private equity groups and strategic acquirers that have cash and are very interested in acquiring good quality companies," Goldberg said.
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