Invariably, there is a common set of questions that every savvy buyer will ask of a company as they are evaluating an acquisition. From a seller's perspective, the more prepared you are to answer (and the better answers you have) , the better your sale prospects.

Although every sale is different, there are a number of common items that have to be completed in all business transactions. Consult your broker and attorney regarding your specific situation, but we have provided the following "Checklist to buy a business" starting point to get you thinking about the tasks required for a closing.

Purchase Agreement
This is the main contractual document that outlines the key terms and conditions of the sale. Both parties should review this document, making any required changes, prior to going to a closing.

Most people interested in purchasing a business are probably well aware of the different available loan programs that help potential business owners become business owners. For those just getting started in the process, here is some information regarding the Small Business Administration's most popular loan program, the 7(a).

Global Imaging Systems, Inc. acquired Marbaugh Reprographics Supply Company, Inc.  Marbaugh is a dealer focusing, in part of wide-format copiers and scanners. 

What The Acquisition Means

Service companies can be a tricky type of business to sell. The number one question that we see asked is “when the owner leaves, are all of the accounts going to follow him/her out the door?” The idea that the “owner is the business” is the central problem to overcome when you seek to sell your company.

A successful strategy for dealing with this issue will pay significant dividends when the time comes to sell. Here are some mechanisms for you to consider:

• Build a Strong Team
• Continuity Plans
• Formal Procedures
• Contracts
• Non-Compete Agreements

What do we mean by service companies? Typically these refer to non-retail, non-manufacturing type businesses. Some examples include:

• Insurance Brokerages
• Accounting Firms
• Travel Agencies
• Medical Transcriptions
• Et cetera

Working on the above tasks – preferably in advance of your decision to sell – will go along way towards making your business more attractive to the market place.

Xerox announced that it will acquire Global Imaging Systems, Inc. ("GIS") a value added reseller (or VAR).  Xerox is paying over $1.5 billion in an all cash deal. 

What They Are Thinking

Global Imagin Systems, Inc. ("GIS") remains on the prowl for add-on acquisitions.  The company announced March 23 that it has acquired TML Enterprises, Inc.  TML is a deal headquarters in Manassas, Virgina serving northern Virgina and DC. 

How it Fits In

Selling a private company can, in many ways, be easier than selling a public company. The assumption, of course, is that you are seeking to sell the entire company. Here are some of the key differences:

Public Companies

• Shares are “traded” openly, therefore a small fraction of ownership is relatively liquid.
• The share price dictates the market value of the company.
• Disclosure requirements are more involved and burdensome for public companies being sold.
• The Board of Directors must approve a sale based on the best interests of the shareholders.

Are you looking to buy or sell a business in the Jersey City area? It is a wonderful city, and there is a wide range of attributes that can make business ownership there quite fruitful.

Key Selling Points

As we enter 2007 Clear Rock anticipates another strong year for the M&A markets, capitalizing off growth and the pace of acquisitions in 2006. The year is likely to see a continuance of mega-deals as financing remains relatively loose.

All things, however, must come to an end. We believe that we are likely to see a slackened pace in larger deals towards the second half of the year. Why? Large deals have become heavily dependent on high leverage levels. The market is bound for a correction, with the Fed pushing monetary policy in that direction already with a series of rate increases.