Source: CNBC.com – Investing in a marque franchise brand is no guarantee of success. Big national chains can get into trouble as easily as small independent businesses due to a wide range of missteps—from overexpansion to excessive debt. In March, Quiznos, the Denver-based sub chain with 1,600 locations in the U.S. filed for Chapter 11 bankruptcy protection. The same month Radio Shack announced plans to shut 20 percent of its 4,000 stores, including 900 that were operated as franchises.
After helping it grow and increase its value over the past 4 years, we finished our work with Advance Furniture Testing (Holland, Michigan) by assisting the owner with the sale to United Laboratories (UL) over the summer. Our intimate knowledge of the company over the years and the desire to always do what is best for the company and its owner were instrumental in preparing this business for sale and bringing it to a successful monetizing event.
Ask yourself this question; If you decided to take six months off from the business – as opposed to the old “what happen if you get hit by a bus” question – can your business survive without you for an extended period of time?
A Term Sheet or an expression of interest (EOI) is an informal offer made by a strategic or financial buyer for the purchase of a business. An EOI can also be referred to as an Indication of Interest or an IOI. Generally it is drafted in the preliminary stages of the acquisition of a business or assets, and can be a useful method for expressing a non-binding intent to purchase.