Negotiating to Buy a company: A Summary

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By Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 5th of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

Perhaps too much has been written about elaborate or indirect negotiating techniques in business situations.  At least in the case of acquisitions, we espouse a direct, problem-solving oriented approach. This builds trust between buyer and seller and allows for resolution of key issues.

Thorough understanding of the seller’s motives and details about his or her company and industry will aid your negotiating ability.  You should thoroughly understand the prospective company, including the likely risks and potential problems you might encounter if you take over ownership.  Further, you should be able to present such concerns in a way that the seller will find believable and will be able to accept.

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Your Credibility

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By Dr. John Psarouthakis, Executive Editor of www.BusinessThinker.com, Founder and former CEO, JP Industries, Inc., a Fortune 500 industrial corporation

This is the 4th of a Series of 15 short articles on “HOW TO BUY THE RIGHT COMPANY” They will be posted at one a week

Credibility is a very important aspect of success in purchasing a company. Many of the issues important to establishment of credibility for one constituency may also apply to some of the other groups. Looked at altogether, the following issues are likely to help you to establish trustworthiness and believability in your proposed venture with the business community and the community at large:

  • That you are serious enough about making the deal that you are devoting significant resources and effort to this venture. If you are a first time buyer, full-time dedication to this venture will contribute positively to your image.
  • That you have reasonable qualifications for running the business, such as an M.B.A., appropriate work experience in a related industry and/or directly transferable management experience.
  • That you are clear about your vision for the company and can communicate why you will be more successful than the present owner in the case of an underperforming firm, or at least as successful as the present owner in a well performing firm.
  • That when approaching the bank for a loan, you have the necessary amount of equity to support the loan.
  • That you have equity partners who are considered credible themselves, either as savvy, experienced business people and/or as investors in previously successful deals.

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The End of the G-20

From Foreign Affairs,  September 14, 2016

Has the Group Outlived Its Purpose?

By REBECCA LIAO who is the Director of Business Development at Globality, Inc. She is also a writer and China analyst.

Over Labor Day weekend, the leaders of the G-20 countries gathered in Hangzhou, China, for their annual summit. Their goal this year: save the good name of globalization, which has recently taken a beating. In the wake of Brexit, the U.S. Republican presidential candidacy of Donald Trump, the rise of the European far right, and China’s own anti-Westernism, the G-20 leaders were supposed to renew their commitment to collective economic growth and open cross-border trade and investment. —————————-

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—————–One area in which international cooperation is crucial, however, is in tax regulations that prevent tax evasion. High-net-worth individuals and corporations are able to move their income to jurisdictions with lower taxes, most of the time through legal means. This ability to hide income stymies tax-and-transfer programs, not to mention that it has meant a significant hit to government revenues in advanced and developing countries alike. In response, the G-20 and OECD have partnered to devise and implement a framework on tax reform that individual countries may implement at a customized pace. The success of this initiative remains to be seen since it internationalizes a tool that is at the heart of a country’s economic sovereignty.

Asking countries to incrementally but broadly give up that sovereignty is not a worthwhile endeavor for the G-20, or for any multilateral organization. It would be better served by focusing on problems that are recognized to be global in nature and by encouraging countries to cooperate on other economic issues without standardizing growth initiatives or imposing growth targets. In the end, after the summits are over, the job of saving globalization is still waiting for the leaders when they arrive home.
To read the full article published in Foreign Affaires click on the link