Free Credit Score Report Online Get Commended For Your Positive Credit Score

By Emil Duanne Hosier

To let consumers stay precisely apprised of their financial status, major agencies allow the acquirement of free credit report every year. Today there are three major reporting agencies that almost every landlord, lender and employer used to obtain truthful credit score information. It will be a wise decision for yourself if you acquire your free credit report from any of these established agencies. There are many advantages you will get if you obtain a free credit report online. Much more if you get this from the agencies that most lenders trust most. If you know your credit score, you can form your financial expectations realistically and you will discover and fix problems areas in your financial records. In some cases, if you’ve experienced being unfairly painted in a negative light because of mistakes on your credit reports, you can take action and correct it right away. That’s the beauty of having your credit score on hand.

Having a poor credit score can affect your financial status negatively. Planning to buy a new house from borrowed funds is simply not realistic if your credit score is low. In the same way, it is too difficult to apply for a large new line of creditor in this situation. For this reason, to be able to make realistic expectation of what loans to apply for and what new rental or credit arrangements to make, it is very important to check your credit score first and you do it for free. Some employers will consider your financial history in the application process. To have a clear picture of the risk you pose for possible employers, it is a wise step to be familiar with your credit rating. Doing so will save you a great deal of embarrassment especially when you are pursuing for significant financial ventures. It will make you aware which financial ventures you are fitted based on your fiscal status.


A credit report will let you know whether you will be commended for your fiscal responsibility or you will need to work towards fixing your credit score. Like any problem, the best way to fix your credit is to identify it first by obtaining it from major agencies. Once you have it you will be able to know the detailed descriptions that explain your scores. With this data you can work out your strong and weak financial points. If you know these you can move on balancing them for a positive result. Having a good standing credit score means open doors for lenders and landlords alike and you can walk through these doors at your convenience.

Even if the major credit reporting agencies are very strict in their reporting and have strong standards for this process, still accidents happen sometimes and errors can occur in the reports. This truth only strengthens the idea of checking your credit report online at least once a year. This will help you keep a tight track of your fiscal status. Also, this will minimize you the possibility of reaping the negative consequences of having an error in your report that is reported against you. If you can spot and correct the error you minimize the possibility of denied loan applications and rejected rental requests. So always get your credit report and improve it. You can use one of the best credit reporting services offering a free trial and the cheapest price online.

About the Author: Has it been awhile now since you checked your credit score report? Check your credit score now. Use one of the best credit reporting services offering a free trial and the cheapest price online by going to



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Car Financing Without A Down Payment, Find Out How Its Possible

By Hilary M Bowman

Do you need to buy a car but do not have any money to pay down towards the purchase? Never fear, there are lenders who specialize in down down payment or no deposit car loans. You, too, can be approved for the new car that you need or want. Even those with less than perfect credit can receive the car loans that they need.

Easiest Loans To Obtain

A car loan is granted to a borrower to purchase a car, but the lender will place a lien upon the car until its paid for, which means that most lenders are willing to finance car purchases because if you fail to pay them for the money they extend to you for the purchase, they can repossess the car and sell it to someone else to recoup their money. This makes car loans among the most easy to approve loans in the industry.

What Your Lender Looks For

When considering you as a good candidate for a car loan, lenders will look at not only your FICO credit score, but also your income. Those borrowers who have been on the job the longest are quickest to qualify for the financing that they need; however, having a job for at least six months with the same employer makes you look stable as well. The longer length of time on your job the greater the approval rating for your car loan.


Bad credit borrowers should be prepared to pay a slightly elevated rate of interest than other borrowers for the same loan. But paying a bit more now can help you build your borrowing history and also add points to your credit score by paying your lender on time every month. Additionally, once you have paid on your car loan for a year or more, you can always elect to refinance at a better interest rate that reflects your excellent payment history, either with the current lender or a new lender.

Buying Your New Vehicle

When shopping for the car, truck, SUV, van or other vehicle you need, be aware that you should always elect to buy a car that has some type of warranty attached to it. Most new cars have a warranty that protects you against paying out of pocket repairs, but if you are buying a used car, go for one that has a factory warranty remaining, or a dealer who offers the same. You need to be protected for the first five years or fifty thousands miles of usage, whichever should come first.

Also, look for one that will replace tires that have been damaged, offers towing assistance, and rental car coverage as well. Having a warranty can be a big asset if something goes wrong with your vehicle.

You can find great car loans for borrowers of all credit types without deposits or down payments on the Internet. Online lenders have greater rates of approval for all borrowers as well as reduced interest rates that can save you tons of cash.

About the Author: Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on

Unsecured Loans

. Hilary publishes informative articles about

loans for bad credit

, no credit check loans, personal loans, student loans and other financial topics at


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Investments In Des Moines Angled Towards Progressive Cancer Research

byAlma Abell

Few battles are as universally accepted and fought for than the one against cancer. Cancer is ubiquitous. Cancer is a menace and the renowned focus on finding a cure has been perhaps no more determined than in 2015. Research is linking a lot of elements to cancer. For example, a high profile study on the quality of food in Americans eat is being directly linked to the increase in cancer cases in the US. Compound this with the renowned focus on health, and there is an absolute cancer crackdown.

This is coming to fruition in the variety of new immunotherapies being discovered and explored and the focus on cancer research in private Investments in Des Moines from companies such as Private Asset Advisory Group LLC. These methods seem to be more effective than what has been seen in the past with traditional chemotherapy. This year will mark the first year that these relatively new and alternative immunotherapies will be marketed in the mainstream. This is leaving billions and billions of dollars on the table with companies finding a way to provide these resources to general audiences.


So they are three big ways than cancers being fought in 2015, and they provide an incredibly prosperous opportunity for Investments in Des Moines that want to take a moral ground as well as a social ground.

* The fight with new immunotherapies alternative to chemotherapy

* The fight for mainstream drugs that are a lot more affordable for the masses

* The fight for a cure

Private investing has to move towards funding cancer research. This will include pushing the envelope even further towards finding a cure. But it could also be in refining and streamlining cancer efforts in new drug development as well as these commercialized immunotherapies.

The treatment of cancer has developed in a whole new way. Now companies are seeing that this battle is not only one that can be defeated in the future, but one that can be greatly minimized right now. Cancer is a constant threat. So there is a stronger push than ever (taking count of the highest cancer rates the country is seen in decades) to get rid of this risk. Furthermore, innovations and insurance on the political and has made cancer research more important than ever before and Investments in Des Moines pushing towards cancer research. Click here to know more.

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Guidelines For Starting A Successful Lawn Care Business

By Susan Nelson Hopkins

Are you nervous about starting your own lawn care business? While its healthy to have a bit of the devils advocate approach to starting a new business, dont let it guide you.

Start your lawn and garden care business with a success advocate approach so you can recognize opportunities when they come. Seek out successful mentors, look for successful business plans to emulate, and follow successful business practices.

In a nutshell, its common sense to put into practice what already works what is already successful.

Know the lawn care business inside and out Do you know whats involved in this business? Do you actually know how to use a lawn mower and the other tools of the trade? Do you know how to service them? Do you know anything about lawn care and maintenance?

If you dont, find out. If you think you do, be sure you do. Go to the library and book store. Search the internet (perhaps thats how you ended up here). The point is, you have at your immediate disposal all the information you need.


Theres also an easy solution to finding any professional help you may need. Enlist the help of retired professionals accountants, attorneys, financial advisors, business planners. Imagine having these retired professionals working on your business. All that personal attention, packed full of years of experience. Its a win-win answer.

Dont quit your job This is one of the real benefits of starting up a lawn care business. You can develop it while youre still working.

Put pencil to paper and determine how many customers you need in order to support your family, and then slowly build up to that.

Be patient, because youre still not quite there.

Continue at this level until youve accumulated enough NET profit to support your family for a minimum of six months.

Or, work out a part-time situation with your boss. If this doesnt work, consider finding a part-time job with another company.

The point is, be patient. Be secure financially before committing to your new lawn care business full time.

Be as debt free as you possibly can Focus on this in the section above. Make it a goal before you quit, or at the very least follow the advice from your accountant or financial adviser.

Gather up the equipment and tools you need You probably already have most of what you need: Pickup truck, or van, or at least a station wagon; lawn mowers; edger; leaf blower; brooms, rakes, shovels, and other hand tools; garbage cans for debris.

TIP: As soon as you can afford it, get a back-up for each of the above. While the above equipment is necessary to your business, dont forget these essential tools: Common sense; good work ethics; working knowledge of human nature; good customer relation experience.

Theres one last thing you need Actually, there are two things you need when you finally do start your lawn care business full time courage and confidence!

About the Author: Susan Nelson Hopkins is an online gardening expert from Carlsbad, NM and writes for the unique Susan’s Garden Group of websites. She specializes in creating lawns and gardens that will attract birds. For other original lawn and gardening articles, visit

Susan’s Gardens



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The Search For A Great Retirement Home Putnam

byAlma Abell

Many treasure the time that they can retire and enjoy their lives more. Some no longer wish to keep up with the responsibilities of owning a home and want to socialize more with others their own age. They feel that the time has come to look for a great Retirement Home Putnam. They are usually interested in finding a space that offers tranquil surroundings and a central location. Planned activities are very important so that one can stay active. A fine dining facility is a plus and is a great way to socialize. They should also offer services that meet the individual needs of their residents.

Assisted living and independent living are two types of options that are usually offered. Independent living works for those who can still take care of themselves completely and who want to remain as independent as possible. Assisted care works well for those who may need some assistance when it comes to bathing, dressing and taking medications. It is a good idea to choose a facility that provides both types of care options. This will help to prepare you if you need assisted living care in the future. The Country House is an excellent facility that offers both types of care along with Respite care for short term stays.

Planned activities should be something that occurs daily. This can include exercise, dancing, trips, group projects, games and much more. These activities will help you to meet others with the same interests. It is also important to you because you will want to make the most of this time. You should take advantage of all of the activities that are offered because you are sure to enjoy yourself.

The cost of care in these facilities vary in price. You should book several tours in order to learn more about what each center has to offer. You will also want to make a list of the most important characteristics that you are searching for. This will be helpful in making a decision. It is a good idea to take along a friend or family member who can give you an opinion as well. Browse website for more information.

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Emini Success Formula 2.0 Download. Todd Mitchells Emini Success Formula Review &Amp; Bonus}

Submitted by: Ron T Daulton

Todd Mitchells Emini Success Formula Review & Bonus. Whether youre a professional trader or a total newbie, youll receive insights and strategies that could easily be worth thousands (possibly millions) to your bottom-line.

The E-Mini Success Formula 2.0. was previously reserved for a small group of select individuals for live one-and-one coaching but is now available as a limited edition home-study course.

What is covered in this day trading mentoring program:

* Fully Disclosed, High Probability Techniques for Consistently Scalping Points Out of the E-Minis!

* Where to Place Your Entries at the Best Price So That You Getting In a BIG Move Before Everyone Else is!

* A Little-Known Method for Setting Your Profit Objectives for a Maximum Gain and a High Winning Percentage!

* Where to Place Your Stop Losses to Reduce Your Risk Without Losing Too Much Money or Getting Stopped Out Too Soon!

* And Ive perfected a method for teaching you how to read a chart with the ease of reading a daily newspaper!

Emini Success Formula 2.0 Bonus Page. Whats included in this E-Mini trading program:

E-Mini Success Formula Program Definition

So, whats actually in this program? Its defined visually below:

As you can see, the program is in the shape of a Pyramid. Were going to work on the Essentials first before we build it up one layer or module at a time, with the eventual goal being that you become a Master Trader at The Master Trader level.

Lets briefly discuss each module again:

Trading Essentials Framework we will start with YOU the trader, which is the most important piece of the profitability equation. We will show you the typical progression (I will dive into this in greater detail in the Master Trader level) that a trader moves through as he/she discovers how to be profitable, and we show you some guidelines on how to become a professional. From there, we move into the Trading Success Principles, which is the cornerstone of everything Ive personally developed in my trading career since 1988.

Trading Success Principles once we have the foundation in place, we can start to layer on the skills required to read and understand a chart correctly. These are very specific technical skills relating to understanding the Market Flow, utilizing Fibonacci Retracements in conjunction with the Market Flow, understanding how to use the Keltner Bands and Key Moving Averages, Key Times of Day when you would expect a move to occur, Floor Trader Pivots, Powerful Price Patterns, and Volume Analysis. We also teach you how to read and understand the NYSE Tick so that you are able to identify what is happening behind the scenes in the stock market.

Income Generating Strategies once you have an understanding of the Trading Success Principles, well show you how to put it all together in to specific Trading Strategies. You will learn specific criteria for entering, exiting, and managing your trades. Youre up against the best traders in the world. What you learn and apply at this level will give you a mastery of the markets for earning income and controlling risk.

About the Author: Ron Daulton Forex Trading Software Developer


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Is It Time To Electronically File Your Income Tax Returns In Canada

By Thor Hanso

The old saying goes that two things in life are certain: death and taxes. Although this is true taxes don’t have to be quite as painful as it was 15 years ago. Prior to the internet and personal computers for everyone filing your taxes was a terrible affair that required either an accountant or plenty of time. However, with the introduction of the internet filing your taxes is much easier than before.

However and quite surprisingly, is that not everyone in Canada files their taxes online. In fact, according to CBC in 2009 only 56% of tax returns were filed online. This means that 44% of the people are either using the old-cumbersome method of paper or using the automated telephone method, Telefile. Here is the breakdown of various tax-filing methods.

Paper – 11.29 Miillion returns (42.4%)

Netfile – 4.63 Million returns (17.4%) – The system that individuals use when filing their taxes through software applications like TurboTax, Ufile, etc


EFile – 10.24 Million returns (38.5%) – The system that tax professionals use to file other people’s taxes.

Telefile – 445,067 returns (1.7%) – An automated system used for VERY simple tax returns.

In this computer aided world where the internet, computers and various tax processing software making things easier it’s hard to see people filing their taxes with paper. However, over 11 million people filed their taxes with paper in 2009! The need for a paper version is fairly clear, however, for anyone with a slightly complex tax return the increased value in using a computer aided version must outweigh the costs of the software!

In fact, it would be interesting to know if people filing their taxes with paper missed out on money (ie: deductions) that they didn’t know existed. Did they get their full RRSP deduction, tuition transferred, investment income, etc Is it was worth saving the money for the tax-software? In addition, filing your taxes online provides a much quicker turn-around time for your tax-return if the government owes you money!

The next question is what are the costs to the tax-payers of Canada to have a paper-tax filing system? Surely an online tax filing method must be cheaper than paying government employees for data-entry. What about placing the paper-forms online so everyone can file online and the data-entry step is removed!

The Canada Revenue Agency’s NETFILE system, the system used to file your taxes online, is turning 12 this year. This means we’ve been able to file our taxes online for 12 years. In this time the citizen’s of Canada have gone from 0% filing online to 56% this is a huge increase but still much lower than expected from a computer dominated world! How many more years till everyone is filing their taxes online or till the government makes it mandatory to file online?

Like it or not taxes are complex and the amount of different government programs is hard to keep track. Might as well use a tax software where you simply fill in the required boxes, it checks your return for errors and provides all the calculations accurately. With the various tax-software platforms the cost associated with the software is very competitive and can be as in-expensive as $6.

About the Author: For a full review of the

best Canadian Tax Software

visit Thor’s website

Best Tax Software



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Overcoming Mortgage Difficulties With The Harp Mortgage Program

By Sean A. Kelly

Back in 2009 when the economy started sliding indefinitely, my high school classmate Ralph started to face issues with his monthly mortgage loan repayment. This was primarily caused by the fact that Ralph lost his day-job as his company started retrenching that year, and left him precariously positioned in terms of financial stability. Without his main source of income, Ralph was forced to look for alternative jobs, most of which did not pay regularly. As a result, his mortgage loan started to suffer as he missed several payments in a stretch. He faced the additional problem of owning a home that did not appreciate in terms of value. Thus he owned no equity in his home at that time, and could not apply for a home equity loan. He was at a loss of how to overcome his mortgage issue, and was exploring the option of conventional home refinancing when the government introduced the Making Home Affordable (MHA) program. The MHA program had two main components to help ailing homeowners cope with their monthly mortgage loan repayments, the Home Affordable Refinance Program (HARP) as well as the Home Affordable Modification Program (HAMP). This introduction came in a timely manner for Ralph, who opted for the HARP mortgage program immediately. The HARP mortgage program was one that allows homeowners to refinance their home even if the owners do not possess any equity in the home, and this suited Ralph perfectly.

Under the HARP guidelines, you are eligible to apply for this program if your home’s original value does not exceed 125% of your home’s market value at the time of application. The value of Ralph’s home at the time of application was approximately equal to what he paid for initially for the property. Thus he qualified comfortably for the program. After going through the application process, Ralph succeeded in refinancing his home at a lower interest rate, and managed to lower his monthly repayment amount by almost 30%. This in turn helped him cope better with the monthly mortgage loan payments, and has helped him retain his home and recover his financial stability slowly but surely. Today Ralph has managed to obtain a new day job, and has returned to his normal cheerful self with his finances back in order. And without the assistance of the HARP mortgage program, this definitely would not have been possible!


The HARP government home mortgage program does not have a minimum credit score requirement. Thus you could still apply for this program if you have low credit scores and are unable to obtain conventional home refinancing packages with attractive interest rates. The same could be said about the HAMP. This program also allows those with bad credit scores to modify their mortgage loans successfully. By opting for the HAMP, you could seek to alter your mortgage loan by either increasing the duration of your loan deal, or seeking a lower interest rate for the mortgage loan. Either way, you would end up lowering your monthly repayment amount to your lender, resulting in you being more comfortable in servicing your mortgage loan.

Remember that even if your property’s value has dropped compared to the price that you paid for it, you could still successfully refinance the property. And by opting for government mortgages refinancing plans such as the HARP, you could save further by avoiding excessive closing costs or processing fees. This makes this option even more attractive to consider if you are currently struggling to service your mortgage loan. Take your time and consider your options carefully before settling on the best mortgage refinancing option for you and your home. All the best!

About the Author:

HARP mortgage programgovernment home mortgage programgovernment mortgages


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The Optimal Exit Strategy Business Transition/Exit Planning For Private Business Owners

The Challenge

This past year has been a difficult one for business owners seeking an exit. Is this the recession, or a reflection of a longer term reality? The answer, it seems, is that exiting business owners will need to engage a new reality for the foreseeable future. According to an article published by Robert Avery of Cornell University in February 2006, “the majority of boomer wealth is held in 12 million privately owned businesses, of which more than 70% are expected to change hands in the next 10 to 15 years.” Only a portion of these businesses will successfully cash out, because of a fundamental oversupply of sellers.

Key Mistakes Sellers Make

Business owners make a mistake when they allow too little time to complete a properly executed business exit strategy. Another mistake owners make is focusing on the price while disregarding the terms and structure of an exit transaction. Other key mistakes business owners make in exiting their companies are:

  • selling to the (only) competitor who approaches them
  • not using experienced advisors (hoping to save transaction costs)
  • setting expectations based on personal needs and without reference to the market
  • failing to explore legitimate positioning strategies

Buyers of middle market companies don’t buy jobs for themselves in the way that small business buyers do, they “invest” with the expectation of a return commensurate with the risk. Nothing enhances a buyer’s perception of value more than:

  • evidence of sustainable growth
  • a capable management team as the key to managing the risk

The Business owner who engages professional advisors, plans thoroughly, and negotiates to ensure that the wealth transfer mechanism chosen most closely delivers on his goals is the business owner who will have executed the optimal exit strategy.

Characteristics which Appeal to Buyers

If the fundamental laws of risk and reward prevail, only the least risky and most profitable businesses will change hands successfully. With buyers focusing on businesses which represent good investments capable of operating with little or no dependence on their owners, the following characteristics will be seen as desirable:

  • Businesses which have scaled beyond a total dependence on the owner
  • proprietary products, services or processes
  • strong, remaining management
  • defensible, differentiated market position
  • stable, diverse customer base
  • recurring revenue business model
  • business growth (opportunities)
  • strong operating margins
  • manageable business risk
  • quality business and accounting systems
  • audited annual and timely internal monthly financial statements

Defining the Exit

Exiting is more than Selling


Exit Planning is a process involving the development and execution of a series of systematic steps taken to allow both the owner and the “accumulated wealth” to be extracted from the business, via one or more of the numerous available strategies, including:

  • Selling the business to partners, strategic buyers, investors, competitors, international buyers, or the public
  • Recapitalizing the business for partial liquidity
  • Merging the business to achieve enhance valuation and/or marketability
  • Transferring the business to family, management or employees
  • Gifting the business to meet personal and/or tax planning goals
  • Liquidating or partially liquidating the business

Exiting is a process, not an event.

The Optimal Exit will be achieved through the implementation of a managed process which includes:

  • Establishing a business valuation reference point
  • Clarifying “Life-after-Business” goals
  • Working with a team of specialist advisors
  • Preparing a written plan ? Identifying and evaluating the applicable alternative strategies (options)
  • Executing any necessary positioning or preliminary strategies
  • Executing the selected exit strategy

Exiting is a complex subject with many moving parts. No single advisor is an expert in all aspects, so the process should involve inputs from a team of experienced advisors, and should address the possible need to re-position the business before going to market.

Setting Goals

Clarifying the Endgame

The Exit Strategy begins with the M&A Advisor providing a likely range of the pricing, terms and structure expected from a sale in the current market. The Financial Planner or Wealth Manager then develops a plan to invest the after-tax wealth extracted from the business to meet lifestyle and life-after-business goals. For the majority of business owners, this newly liquidated business wealth will constitute a meaningful portion of the total wealth driving the financial, tax and estate plans. The key, then, to beginning the exit planning process, is to clarify the endgame, taking into account the likely value of extracted business wealth.

  • Legacy Goals – what will have been your contribution?
  • Lifestyle and Life-after-Business Goals – what do you want from the next phase of your life?
  • Estate Planning Goals – how will you ensure that your estate passes to your heirs in the most tax efficient way?
  • Exit Strategy Goals – based on all of the above, what are the priorities to be met by your selected exit strategy as to risk, time, wealth and income?

Selecting a Team

Play the “A” Team

The M&A Advisor should assemble and coordinate a team, including existing advisors where applicable, that will ensure:

  • access to all appropriate options and opportunities
  • being fully informed as to the merits and demerits of proposed strategies
  • having expert counsel and representation

The team must include the necessary knowledge, skills and experience in Mergers & Acquisitions, Corporate Law, Taxation and Financial Planning/Wealth Management. It may also include specialists in ESOPs, insurance, personnel and business consulting disciplines.

Writing a Plan

Planning Precedes Execution

Business owners should not expect to exit successfully in the next 10 years without figuring out how best to exit and what preparatory steps should be taken.and should not assume they can wait until they are “ready”. While the critical execution phase will not be a problem for most take-charge entrepreneur business owners, the planning for an exit will be foreign to them as exiting has never been their purpose. Their purpose has been to create and build, and to consider the exit (if at all) a retreat. The M&A Advisor should coordinate a collaborative team effort to prepare a written Exit Plan incorporating a valuation of the business, a statement of goals and objectives, a review of alternative strategies (options), an analysis of the gap between the goals and the options, and strategies for closing the gap.

Reconciling Goals and Options

Once one has established an indication of the Expected Wealth Transfer (the after-tax proceeds from the business exit) on the one hand, and an estimate of the Targeted Wealth Transfer (the wealth transfer required to provide the personal life-after-business goals) on the other, the business owner and the exit team must now reconcile the two before selecting and implementing an exit strategy. Whether or not the expected and targeted wealth transfer values are the same, the owner should review all exit options, and should also evaluate a number of Positioning Strategies for execution prior to implementing an Exit Strategy. Reconciliation or Closing the Gap is an iterative process of evaluating combinations of positioning and business exit strategies that will yield a release of wealth (the Expected Wealth Transfer) compatible, as to quality, time, value and certainty, with achieving the specified goals and the associated Targeted Wealth Transfer. Closing the gap may also involve modification of the Targeted Wealth Transfer. Again, notice that there are two key points of inflection for matching the exit with the personal goals:

  1. The ability to vary the value, timing and certainty associated with extracting the business wealth
  2. The ability to vary the timing, risk tolerance, estate wealth, living standards and other variables inherent in the personal goals

A key issue business owners face in considering Positioning Strategies is the very central question of the risk – reward paradigm. Positioning strategies cannot be executed entirely without risk, but manageable risk strategies may deserve consideration if they serve to better ensure that the business wealth will be delivered in the context, amount, time and certainty needed to meet the identified personal goals.

Positioning Strategies

Corporate Value Enhancement

The team should look at the corporate structure and governance mechanisms to consider whether the business is optimally positioned for the intended business exit. For instance, an asset sale from a C Corp could result in tax obligations at both the corporate and the individual levels. Conversion to an S Corp may be advantageous, but the tax benefits vest over an extended period of time. The make-up of the Board and any Advisory Board may also have an impact on the value perceived by a buyer. Management strength is considered below. From the standpoints of scale, product or market diversity, management strength or any number of others, the business may benefit from a combination with or consolidation into another business prior to its sale. Alternatively, it may be desirable to spin-off one or more non-synergistic or non-performing divisions to increase profitability or allow greater management focus.

Business Value Enhancement

Business value enhancement strategies generally influence valuation because of their perceived impact on risk, growth or profit margins. At the top of many buyers’ lists is the need to see a strong, experienced and motivated management in place. For financial buyers, this often includes the need to be assured that management has skin in the game, typically an equity interest. Improvements in profit margins are strongest when they are reflected in trailing (historical) earnings. More recently effected changes, or even planned changes, can also influence valuation, however, if the benefit of the changes can be quantified and demonstrated. Because of the multiplier effect built into earnings-based valuations, a $1mm earnings improvement may increase the valuation by, say, $5mm. It doesn’t seem entirely logical that an exiting business owner would have unexplored opportunities available for making improvements to the business. It’s a little like living with an outdated kitchen and upgrading just before selling the house. As in the real estate analogy, the stakes are higher at the time of exit, and the focus on marketability and valuation greater, so these opportunities often do exist. Other business value enhancement strategies include:

  • Reviewing and revising the revenue and/or business models
  • Implementing product / market enhancement plans
  • Expanding and diversifying the customer base
  • Securing title to patents and intellectual property
  • Commissioning of financial and operational audits
  • Strengthening or upgrading of systems and procedures
  • Documenting or codifying contractual relationships (employees, vendors, customers, debt)

Business Marketability Enhancement

If growth opportunity, managed risk and strong margins are the foundation for building value enhancement strategies, then clarity, transparency and certainty are the engines which drive marketability. Business performance is clearly reported and accounted for, activities and status are transparent to the buyer, and all information portrays a level of certainty about the future. Experienced buyers know that completing acquisitions is a time-consuming and expensive exercise. Buyers will perceive greater clarity, transparency and certainty, and therefore be more motivated to engage, when the seller has:

  • Audited financial statements
  • A business plan with a clearly defined growth path
  • An in-place sector-experienced management
  • Current market metrics and analysis

Multi-Step Liquidation Strategies

Reference is made above to the risk-reward paradigm. This fundamental reality plays out in ways too numerous to mention, including strategies elected by business owners to both take cash off the table to reduce risk/exposure as in a re-cap, and assume reasonable risks for an enhanced valuation as in an earn-out structure. Consider:

  • The lowest price is an all cash price (not often available in today’s market)
  • Waiting before selling is risky
  • Participating in an industry consolidation or roll-up increases the risks and uncertainty of an exit, but potentially enhances marketability and yields a greater valuation

A classic two-stage exit is accomplished by means of a re-capitalization in which an investor / partner / buyer acquires part of the business with an expectation to either buy the rest of the business or to market the business in cooperation with the remaining owner at a later time and at a greater valuation. The owner takes some chips off the table, but retains a stake, and usually continues to participate in management. Merging the business into one or more other businesses before exiting can lead to increased marketability and even an improved valuation sometimes referred to as multiple bump. Consider a $20mm revenue business with earnings of $3mm which commands a valuation of $15mm (or a 5 multiple). Combining that business into a $100mm business with earnings of $15mm and which commands a valuation of $90mm (a multiple of 6), now values the original company’s participation at $18mm, and the consolidation strategy has yielded a $3mm valuation gain.

Transaction Structuring Strategies

Every step along the complex path of executing an exit strategy demands access to advice from professionals who have been there and who know the opportunities and the pitfalls. Even though the structuring of the exit transaction comes toward the end of the process, structuring is included here as a positioning strategy because it impacts the value of the Expected Wealth Transfer. Key structuring considerations include:

  • Considerations of risk and reward
  • Tax considerations
  • What incomes and expenses are included (i.e. belong to the transacted business)?
  • What assets and liabilities are ex/included
  • What pre-transaction liquidation, settlement/exclusion opportunities exist?
  • What relationships between buyer and seller arise? (employment, advisory, landlord, supplier, partners, etc.)
  • Documenting or codifying contractual relationships (employees, vendors, customers, debt)

The majority of middle-market businesses bought and sold derive their valuation, at least in part, from cash flow or earnings. The very key question then arises: “What assets and liabilities are essential to and an integral part of the ongoing enterprise, thereby supporting the established earnings flow?”

Exit Strategies

The business owner should have his M&A Advisor prepare an analysis of the fit and applicability of each of the exit strategy options to the stated goal and objectives. Not all options will fit every business or every set of goals. Individual strategies might include:

  • Sale to Partner, Competitor, Strategic Buyer, Financial Buyer, International Buyer, the Public
  • Re-Cap
  • Merge
  • Transfer to Family, Management, Employees
  • Gift
  • Liquidate

Benefits of a Planned Exit

The primary purpose of approaching a business exit in a systematic, goal-focused and planned way is to dramatically increase the likelihood that the outcome will be optimal to the stated goals. The employment of a team of professional and experienced advisors will add a cost of, say, 3% – 6% of the wealth transferred, but will potentially add considerably more value by:

  • mitigating against a failure of the mission
  • dramatically expediting the mission
  • intermediating the process to eliminate the risks associated with direct negotiations between principals
  • increasing the negotiated value of the mission
  • reducing the income tax burden
  • helping to reconcile the Expected Wealth Transfer to the Targeted

Wealth Transfer

…not to mention providing the knowledge and human resources to navigate a complex and time-consuming labyrinth of decision making and task execution.

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Peter Heydenrych’s entrepreneurial experience, as the owner of service/manufacturing companies, provides perspective and ability to plan and execute successful business exit strategies, based on a thorough understanding of M&A transactions.Author: Peter Heydenrych

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