Posted by on Jul 17, 2010 in
Uncategorized The first company in this article that is going to present three companies that have been using the translating services from various cities is called ProAl and is a leading manufacturer and seller of aluminum. Being one of the most respected companies in the business for its innovation, ProAl supplies with aluminum products industries such as aerospace, consumer electronics, commercial transportation and construction and building. Some of the solutions the company provides are: fastening systems, flat-rolled products, extrusions and forgings, as well as expert evaluation and advice in light metals like nickel and titanium. Ever since its establishment in 1954 in Atlanta, the company has occupied one of the top spots in its sector. An important aspect of the company policy was to find realization on the foreign markets – a policy that was adopted in 1987. This of course would also involve communication with foreign contacts. Thus, it ended up signing a one-year contract with the Miami Translation, which later grew into a long-term partnership. The values that the company shares aim toward these significant aspects: the company creates safe and wholesome environment for its employees, it always keeps its promises and last but not least satisfying the customers’ demands beyond their expectations is central to the company philosophy.
Comprising activities in the business sectors of agribusiness, transportation and real estate, which all three function simultaneously, so they create value over time, the second company in this article is Grotfort Inc. Planning and development are the activities carried out by the real estate department, whose aim is to increase the value of Grotfort Inc. property so it satisfies the clients’ expectations. Through its nearly 7 million square feet of properties the company has created values for its stockholders by resisting the pressure of the market changes. Recongnized as a leader in shipping, the transportation department is instrumental in helping businesses around the North American continent. Freight forwarding, warehousing, long haul brokerage, distribution and air freight services are among the services Grotfort Inc. offers to its clients. The sustainable practices like water management and farming that the company uses in the production of sugar and coffee are possible due to its large production capacity. The German Translation is the company that provides to Grotfort Inc. the necessary expertise in their everyday contacts with their European and other foreign partners. This includes, meetings, phone calls and negotiations.
With a workforce of over seven thousand people in most parts of the world and annual revenues going beyond $2.5 billion, the third company featured in this article has set as its objective to provide its shareholder with high return of their investment. Operating in the sector of manufacturing metals, Dextron Metals offers a wide range of high quality alloys made from niobium, zirconium, nickel and titanium, to name the few. The markets of the company include the chemical industry, the pharmaceutical and automotive sector, the defense and aerospace industry, and the construction and mining industry. The company was established in Denver, and over the years has made a major step towards conquering the European and Asian markets. Dextron Metal works in close collaboration with Denver Translator that help them maintain the high standard of communication in the meetings and negotiations with foreign partners. Being a company that does not allow discrimination, that encourages doing business in an open and honest way and judges all of its employees on the basis of their merit and abilities, Dextron Metals is a company that is an equal opportunity employer.
Tags: business, Communication, Innovation, products
Posted by on Feb 7, 2010 in
Uncategorized A liquor store for sale can be an extraordinary opportunity for someone who is intending to enter the highly competitive arena of entrepreneurialism. Traditionally, liquor stores have been viewed as providers of “essentials,” with excellent turnover and fair margins. However, performing a liquor store valuation can be a tricky business, even under the best of circumstances. The entire industry is somewhat reliant on antiquated barometers and the owner may be seeking to offer you the business based on traditions rather than real world elements.
As such, because of those traditions, the industry retains a somewhat veiled view of strategies utilized to assess actual, individual business values. No two liquor stores are the same, as they have different footprints, different specialities, the existence or absence of certain subsidiary products which can represent substantial values in themselves, etc. Always keep in mind that you need to place your attention on the actual claim of profits, not to references of percentages or to the simple fact that the business in question might have solid sales, as sales in and of itself doesn’t mean anything.
While you can certainly go over the percentages which are provided to you and use them to clarify any abnormalities which come up, the most useful method of business valuation, liquor store experts all agree, is specifically based on cash flow or owner benefits. Often they will refer to a figure which represents a “multiple,” and this multiple can be three, four or five times. So, what exactly does this particular multiple refer to?
Across the board, the most commonly utilized figure represents the owner benefits. This refers to the money that you will have left after you have taken all expenses into account and essentially represents the funds you will use to service the debt, pay yourself accordingly and to build the business. When looking at the books your owner benefit is defined as net income added to the owner salary, perks, depreciation and interest less capital expense allocation. The latter element refers to any major alteration or investment you will need to make in the foreseeable future, by installing updated computer systems or redecoration, as examples. Always be sure that any “add backs” are appropriate and reasonable.
As you are going to buy liquor store business at a premium, in relation to the “multiple” attached to the value, you must of course be sure that it is being sold as an ongoing concern. This claim is particularly appropriate when it comes to the inventory of the business. Make sure that you buy this inventory at terms which are realistic to you. Often, buyers will seek to remove the cost of the inventory from the valuation and add it on separately. It should always be treated as an integral part of the valuation and not used to inflate the seller’s position. Typically an inventory is turned over by a liquor business between eight and 10 times per year and you should ensure that your particular stock does not include a large element of items which may be unsalable or seasonable.
Be wary of an owner who claims a large amount of cash sales, as if they cannot prove it, you should never pay for it. In other words, they should not benefit twice – first when they fool the tax department and secondly from an inflated business sale value.
Remember that you must have a good conversation with the leaseholder or management company, assuming that the business occupies a rented space as is most common. Understand before you go any further what you would need to do to assume the lease or to qualify for a new one.
A word on owner financing, which may be offered. Generally speaking, you may add the value of between 30 and 50% of the amount financed by the seller and consider that to be a premium to the stated business value, versus an all cash transaction.
Be on the lookout during times when you meet with the owner, visit the premises or otherwise conduct your due diligence. Consider the number of patrons that you see going in and out of the store and use this as a benchmark, bearing in mind the time of day of your observation. Do you see many family members of the owner working there or watch the owner working excessive hours? Ask yourself whether you want to replicate the situation and how you can truly arrive at a value for the work input by the family members, especially if they are being paid off the books.
When considering how to value a liquor store, remember that valuation is an art not a science!
Richard Parker is the President and founder of the Diomo Corporation – The Business Buyer Resource Center. His inspiring materials, seminars and consulting have assisted thousands of business buyers with achieving their life long dream to buy a business.
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