Contact

To contact Sheila Spangler:

s.spangler@murphybusiness.com

Office:    208-286-2300
Mobile:  208-343-7007

Popular posts from this blog

Why Lowering Loan Rates Won't Boost SBA Loans

Today’s article on Heraldnet.com says: "Congress is puzzling over how to improve lending rates to small businesses in light of a lackluster performance from loan programs through the Small Business Administration." The crux of the small business credit crunch is not about interest rates or lack of investors willing to purchase loans….although both play a part….its about credit quality. There is a key piece of the pie that no one is talking about. That is: investors want to buy perfoming or “seasoned” loans that have been in good standing for a significant period. A “seasoned loan” is one where the borrower has made payments on time since the loan was originated, the collateral value hasn’t deteriorated and there are generally no issues or problems. That means that any SBA loan made today would generally require 12 months of good performance before an investor would be willing to purchase it at the current premium. However, if during that “seasoning period” the borrower goes i
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Why You Need to Know What Business Buyers Want

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  As a business owner, you may have one or more choices when it comes to exiting your business.  You'll either pass it on to a family member, sell it to a third party or shut it down. Generally, your business will have a different value in each of these situations.  Isn't it a good idea to know how much your business is worth now so you can decide which choice is best for you when the time comes? Recently, I spoke with a business owner with a 20-plus year track record who is considering a sale of his business. In his opinion, he has two options. One option involves selling to a family member.   The other possibility is to sell to a larger company.  I explained that one choice might bring a higher value. And the important thing to know, is which one.   There are several types of buyers : •     Financial buyers – motivated by income, usually individuals. They focus on companies with revenues under $10,000,000. These make up the bulk of business sale transaction
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What's Goodwill Got to Do With It?

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The other day an attorney friend said in his best Scrooge-like voice, “I don’t like goodwill.” Because we were discussing business sales, I knew he wasn’t referring to the happy, peaceful, holiday goodwill. He meant business goodwill except he called it “blue-sky”. Contrary to popular belief, the word blue-sky is not synonymous with goodwill. Goodwill has more than one meaning especially at this time of year, but blue-sky isn’t one of them.   My attorney friend was confusing something of no value (blue-sky) with a sale-able asset (goodwill). While some owners do have blue-sky dreams, the buyer purchases goodwill and tangible assets when a business is transferred in an asset sale.  According to Merriam-Webster’s dictionary, Goodwill is:  1)     a kindly feeling of approval and support; benevolent interest or concern;  2)     the favor or advantage that a business has acquired especially through its brands and its good reputation;  3)     the value of projected ear
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