Why Should I Use A Business Broker?

You’ve come to the decision that buying a business or selling your business is the path that you want to take. The best piece of advice, although biased, I can offer is to retain the services of a business broker or business transfer adviser. Although business brokers usually work on behalf of the seller, there are sell-side business brokers and buy-side advisers. Even if you’re a buyer and you decide not to retain the services of a business broker or transfer adviser, you’ll receive the benefits because a business broker is working with the seller.The broker is sort of like a clamp that holds things together as the business buyer and seller progress through the business transaction. Below I’m going to explain to you how both business seller and business buyer can and will benefit from the services of a business broker:Let’s meet-The good thing about the business broker is, the profession requires face to face meetings. Even though the broker is getting paid by the business seller, the buyer has to meet with the broker in order to view the business as well as so the broker can determine if the buyer is a compatible buyer for the business.The meeting will be an interview style meeting. Some of the questions that will be asked by the broker are:1- Can you go into detail about your background?2- Have you ever purchased a business3- Do you have easy access to the cash to buy a business?4- Can you show proof of proceeds on a recent bank statement?5- How soon are you willing to make a purchase?In addition to the question and answer portion, you’ll also be given a personal financial statement to fill out and return. Be sure you return this information as soon as possible.What usually takes place after this meeting is, the business broker will than present compatible business to the buyer. So come prepared with a recent bank statement showing the cash. Time is of great importance. Strike while the fire is hot and move with swiftness.Expect for the broker to ask you to sign a non-disclosure agreement. The business seller wants to ensure that the word about the business being for sale is kept quite.As the buyer, you’ll get to see very general financial information about the business of interest and others in the business broker has other businesses available. If you decide that you have serious interest in any of the businesses that are presented, the broker will provide you with more in-depth financial date and also arrange for you to see the business in person.The broker will act of the best point of contact for the buyer. Any questions or concerns that the buyer may have, the broker can answer all questions concerning the business.How the business broker helps the seller-If you’re the owner of a business and you’ve decided to sell, one of the best services that you can retain are the services of a business broker. The broker will oversee the entire process while you continue to run your business.The business broker will interview all of the buyers. This service by itself is worth the broker fee. Business brokers usually have access to a database of buyers that they’ve acquired over the years. These are buyers that have identified themselves are compatible and financially capable of buying a business. Having access to a list of buyers will speed up the process and help get the business sold while it’s still “hot.”The business broker will especially prepare a marketing plan for the business in question. A sales prospectus will take time to prepare but your broker will provide you with this required document. In addition, the broker will structure the deal as well as assist the completion of the paper work.Many owners don’t know how much their business is worth, therefore the broker can assist you with pricing your business. Te pricing of the business is just a starting point. The buyer will get an official appraisal. Between the 2 numbers, the negotiations will start there. Also, you want to ensure that your business is properly priced. You don’t want it to be overpriced not under priced A business that is priced right WILL SELL. The ultimate price of the business will be determined by what it sells for or as brokers like to say-the marketplace.The business broker is one of the most important advisers that a seller can have on their transaction team. This broker will bring their years of experience to the table. This will help both buyer and seller and ensure both parties walk away happy.

Consolidating Students Loan – A Better Option

Applying for a college degree can be very expensive. Most students resort to financial aids so as to be able to pay for their tuitions. These student’s loans offered by universities or colleges and private companies can be paid after finishing the degree however, the interest that will be accumulated in time can add to the burden of the students.A good option that can help students to manage their loans is by consolidating students loan. This repayment solution that can be availed by the students is a practical and easy way to pay for a loan. Consolidating students loan can be considered when students a long term repayment and fixed interest rate are offered in paying for multiple loans with high and varying interest rates. When consolidating students loan, all existing loans are combined into one new manageable loan from a single lender. It lowers the monthly loan interest rate and stretches the repayment term of loans.Consolidating students loan offers numerous benefits for students who are having trouble in settling their loans. It provides repayment relief with its light payment method.• Low monthly payment – Students with good credit record can get low interest rate of up to 50% and sometimes even more on their monthly loan dues. This will help students manage their other expenses easily since they are able to save hundreds of dollars monthly.• Reduced interest rate – The interest applied when consolidating students loan is the weighted average of all the existing loans that are being consolidated so there will only be a slight increase in loan interest.• Extended repayment term – Consolidated loans have longer repayment period that ranges from 12 up to 30 years enabling a student to pay for other expenses and enough time to find means of settling debts.• Hassle- free payment – Keeping track and paying for many loans from different lenders can be arduous. With consolidated loans, the students will only have to pay one loan to one lender, avoiding missed dues and stress from thinking what loans have been and have not been paid.• No prepayment for consolidation and penalty charge – Students who apply for consolidation on their loans will not be asked for an up front charge fee; no additional burden for students.• Good credit history – Failure in paying loans when students forget or miss checking their payment records can result to bad credit record that will give them difficulty when re-applying for loans in the future. Consolidating students loans enables students to pay for all loans on time since all loans are merged into one from a single lender. It improves credit history of students that will be advantageous in the coming years.When thinking of consolidating students loan, consequences should be carefully thought of before making a decision as it cannot be taken back once the application has been approved. Searching for better terms from different lenders will provide better choice.The flexible terms offered to students in consolidating students loans are of great help in relieving students’ financial problem. Paying loans is no longer cumbersome for students who depend on financial aids to reach their dreams.

4 Ways To Participate In The Crude Oil Trading Business

In this piece, I want to reveal to you 4 ways you can possibly participate in the oil trading business. Relax and enjoy yourself as you read and understand the following 4 ways to get involved in the highly lucrative online crude oil trading business. They are listed and explained below:Participate in a Trading Pool
Trade On Your Own
Hire a Fund Manager
Get a Trading AdvisorParticipating in a Trading Pool:This simply means pulling your resources together in a pool with others and then a good and profitable trader appointed to trade the account. This is similar in concept to a common stock mutual fund. It is the only method of participation in which you will not have your own individual trading account. Since your money will be combined with that of other participants in the pool, and in effect, traded as s single account, there will be an agreement on profit and loss sharing ratio in proportion to each participant’s investment in the pool.Advantages:One potential advantage of this method is greater diversification of risks than you might obtain if you were to establish your own trading account. Another is that your risk of loss is generally limited to your investment in the pool, because most pools are formed as limited partnerships. And you won’t subject to margin calls.Risks/Disadvantages:It is worthy of note however, that the risks which a pool incurs in any given transaction are no different than the risks incurred by an individual trader. The pool still trades in future transaction which are highly leveraged and in markets which can be highly volatile. The pool can as well suffer substantial losses just like an individual.The Way Out:A major consideration, therefore, is who will be managing the pool in terms of directing its trading. There are some pools that operate independently of the brokerage company, while some other brokerage companies, in order to serve those customers who prefer to participate in a pool, establish relationships with one or more trading pools or operate theirs. But ensure always that the broker is regulated by FSA in the United Kingdom or CFTC in the United States of America.In most instances, a Commodity Pool Operator (CPO) cannot accept your money until it has provided you with a Disclosure Document that contains information about the pool operator, the pool’s principals and any outside persons who will be providing trading advice or making trading decisions. It must also disclose performance records, if any, of all persons who will be operating or advising the pool ( or, if none, a statement to that effect). Disclosure Documents contain important information and should be carefully read before you invest your money. Another requirement is that the Disclosure Document advises you of the risks involved.In the case of a new pool, there is frequently a provision that the pool will not begin trading until (and unless) a certain amount of money is raised. Normally, a time deadline is set and the CPO is required to state in the Disclosure Document what the deadline is (or, if there is none, that the time period for raising funds is indefinite). Be sure you understand the terms, including how your money will be invested in the meantime, what interest you will earn (if any), and how and when your investment will be returned in the event the pool does not commence trading.Determine whether you will be responsible for any losses in excess of your investment in the pool. If so, this must be indicated prominently at the beginning of the pool’s Disclosure Document.Ask about fees and other costs, including what, if any, initial charges will be made against your investment for organizational or administrative expenses. Such information should also determine from the Disclosure Document how the pool’s operator and advisor are compensated. Understand, too, the procedure for redeeming your shares in the pool, any restrictions that may exist, and provisions for liquidating and dissolving the pool if more than a certain percentage of capital were lost.Ask about the pool operator’s general trading philosophy, the contract traded and whether they will be day-traded. Please carry out your due diligence.Trade On Your OwnThis is simple; you have to enroll for quality training, practice and go through an apprenticeship program with a qualified trader before you venture into doing it yourself. After your training and apprenticeship, you can then go ahead and open your personal account with the broker of your choice. You may get a broker directly by yourself or do that through an introducing broker. Note that you will bear all the risks and take all the benefits all by yourself. Hence, you need to ensure you establish your skills through demo trading or engage in micro trading with little money before you commit bulk investment money according to your ability. Get quality education before you commit real money.Hire a Fund ManagerAlthough this is another way for you to participate in this market if the first two above do not go down well with you. But I will be very careful in advising you to take this route as good fund and portfolio managers are very few to the best of my knowledge.A managed account is also you accountThe only difference is that you open the account and then look for a fund manager to manage it for you. You more or less give him or her power of attorney to trade on your behalf. He or she will have discretionary authority to buy or sell for your account or will contact you for approval to make trades he or she suggests. You, of course, remain fully responsible for any losses which may be incurred and, as necessary, for meeting margin calls, including making up any deficiencies that exceed your margin deposits.Although an account manager is likely to be managing the accounts of other persons at the same time, there is no sharing of gains or losses of other customers. Trading gains or losses in your account will result solely from trades which were made for your account. In most instances, the amount of money needed to open a managed account is larger than the amount required to establish an account you intend to trade yourself. Different firms and account managers, however, have different requirements and the range can be quite wide. Be certain to read and understand all of the literature and agreements you receive from the broker. Some account managers have their own trading approaches and accept only clients to whom that approach is acceptable. Others tailor their trading to a client’s objectives. In either case, obtain enough information and ask enough questions to assure yourself that your money will be managed in a way that’s consistent with your goals.Discuss fees. In addition to commissions on trades made for your account, it is not uncommon account manager to charge a management fee, and/or there may be some arrangement for the manager to participate in the net profits that his management produces. These charges are required to be fully disclosed in advance. Make sure you know about every charge to be made to your account and what each charge is for.Finally, take note of whether the account management agreement includes a provision to automatically liquidate positions and close out the account if and when losses exceed a certain amount. And, of course, you should know and agree on what will be done with profits, and what, if any, restrictions apply to withdrawals from the account.Get a Trading Advisor:As the term implies, a Commodity Trading Advisor (CTA) is an individual (or firm) that, for a fee, provides advice on commodity trading, including specific trading recommendations such as when to establish a particular long or short position and when to liquidate that position. Generally, to help you choose trading strategies that match your trading objectives, advisors offer analysis and judgments as to the prospective rewards and risks of the trades they suggest. Trading recommendations may be communicated by phone, electronically via the internet or through mail. Some provide a frequently updated hot-line or website you can access for current information and trading advice. You need to verify the experience of such advisor before committing to taking his advice. If your advisor is US based expert, you may check up his profile to find out if he is registered with NFA at http://www.nfa.future.org. But if in the UK, confirm with FSA at http://www.fsa.gov.uk

Are You Choosing the Right Stock Market Advisory Company

What do you do if you want to learn driving a car? You will try to find an expert teacher, isn’t it? You do not want to avail the services of a novice individual to help you out, but a professional person can provide you the vital tips and most importantly guide you efficiently. Similarly, when it comes to investing in the stock market for the first time, you require a knowledgeable advice to attain your financial goals and get profitable returns.

If you are a beginner, then it is quite obvious that you may be having no information about the process of buying the right shares in the market. In such a situation, getting the right tips from an experienced financial advisor or a registered advisory company will truly prove to be a great blessing in disguise. However, there are some of the important things that have to be kept in mind while choosing the top stock market advisory company, which are as follows:

How much assistance do you actually require?

Before you make up your mind to hire an advisor, it is imperative that you must first decide about the kind of service you require from them. You may need their help at the beginning or during the time of any issues. This is because an advisor has to formulate a map according to your requirements. Hence, it is suggested to ascertain your needs first and then take further action.

Choose a top ranked advisory company

It is a very important point that has to be taken into the consideration. Availing services of the well known advisory company or a financial advisor is an absolute necessity. Make it a point to carry out a proper background or research work about the company. Check out their credentials, reputation, experience, etc before hiring them.

Asking for a sample financial plan initially makes sense

When hiring a financial advisor, then do not forget to ask for sample plan first. It is imperative to note that there is no such thing called the perfect plan. A sample plan will help you to determine whether an advisory company is actually making sense according your requirements or not.

Conclusion

The financial planners or advisory companies can really turn out to be the greatest asset for you if you choose the best one. They are just like the professional sailors who can help you out to sail through stock investment related problems quite efficiently.

Deepak is a financial advisor who likes to provide quality tips to the people facing any issues with regard to investing in the stock market. He likes to keep himself updated about the stock market by reading articles, news and blogs, etc.

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