SOWPub Small Business Forums  

Click Here to see the latest posts!

Ask any questions related to business / entrepreneurship / money-making / life
or share your success stories (and educational "failures")...

Sign up for the Hidden Business Ideas Letter Free edition, and receive a free report straight to your inbox: "Ordinary housewife makes $120,000+ a year in her spare time, using a simple idea, and her driveway!"

Also, please no insults or personal attacks.
Feel free to link to your web site though at the end of your posts.

Stay up to date! Get email notifications or
get "new thread" feeds here


Go Back   SOWPub Small Business Forums > Main Category > SOWPub Business Forum
Register FAQ Members List Calendar Search Today's Posts Mark Forums Read

SOWPub Business Forum Seeds of Wisdom Forum

Thread Tools Display Modes
Prev Previous Post   Next Post Next
Old May 11, 2016, 04:56 AM
ascendedmind ascendedmind is offline
Join Date: Jun 2015
Posts: 17
Default "The Ideal Distressed Suitcase Business?

Wow, Gordon I really appreciate your knowledge & research! What type of distressed businesses does Sherman focus on, which would qualify as a suitcase business?

Yes, I signed up to read his blog etc. However, I have not found any specifics. I understand the concept of stored value. I like the idea, but what is the reality? Is Sherman over simplifying this?

Have you listened to any of Art Hamel interviews by Michael Senoff? He specializes in buying specific types of manufacturing businesses because you can use finance the assets & get owner financing.

However, it does not sound like an opportunity Harvey would pursue. Bog down & too time consuming?

Art Hamel says:

"In manufacturing, you have to buy equipment, lots of it. You need lots
of inventory. You end up with a lot of accounts receivable, which
means a lot of people owe you money. So, when youíre in there, and
you have X number of dollars, lots of dollars invested in assets, itís
very difficult for somebody or people generally to go in and compete
with you.

Why? Itís too costly"

Donít go after service and retail businesses. There a dime a dozen & too easy to enter into.

ďI have to ask you (Wannabe business buyers)three questions.

First of all, do you have any business experience? Number two, do you
have any management experience? Number three, do you have any
money? Now, if you donítí have two of these, youíre screwed.

Additionally, Art Hamel says:

"What are three things I have to have in place in order to value
companies correctly, purchase them, and then operate them towards a
more profitable future... And where can I locate the right people with that
expertise to be on my team?"

"First of all, in every transaction, youíre going to need a CPA, a good
one, and a CPA that understands business. Donít go to some CPA
thatís working for General Motors. Youíve seen the job that theyíve

What you want is a nice CPA whoís done a lot of work with smaller
businesses, that has experience in that, and has also done audits or
checking on sales of businesses.

You also want an attorney that is used to putting business transactions
together, not somebody that is an expert in law that has to do with
divorces. You want two experts in your court.

Now, the problem is they are the exception rather than the rule. So,
youíre going to have to rely on your attorney, your CPA, and also other
business owners because whatís going to happen is if youíre looking at
electronics manufacturing companies, youíre not going to buy the first
one you run into."

Sounds very complex & time consuming to me.

Gordon, any idea what Sherman considers an Ideal distressed business to acquire as a suitcase business?

Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Other recent posts on the forum...

Rare "insider" peek at development of a direct mail piece...
Joe Cossman. Worth a watch.
How to evaluate a Biz-Op like a Shark, for fun and P R O F I T !!!
How about a review of ideas? Business, life and everything else.
NEW and different COPYWRITING course. Limited.

Seeds of Wisdom Publishing (front page) | Seeds of Wisdom Business forum | Seeds of Wisdom Original Business Forum (Archive) | Hidden Unusual Business Ideas Newsletter | The Great Ideas Letter on CD | Hotsheet Profits | The Art of Leverage | The Success Report | Persuade via Remote Influence | Writer's Friend (software) | Affia Band | The Entrepreneur's Hotsheet | The SeedZine (Entrepreneurial Ezine) | The Fly Low Collect Dough Update Hotline

Get the report on Harvey Brody's Answers to a Question-Oriented-Person

All times are GMT -4. The time now is 09:13 AM.

Powered by vBulletin Version 3.6.0
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.