Monthly Archives: June 2016

Expert Tips For Effective CRM

bu20Today’s store owners don’t need to manage their operations all on their own like the salespeople in more ancient times did. These days, technology is available to make everything from the simplest to the more complex retail processes easier and faster to accomplish, resulting in benefits all around. Here are some of the crucial software tools that make retail management a cinch for today’s enterprising individuals and organizations.

CRM. Most retailers require a system for effective customer relationship management which would enable them to keep track of every single interaction with their existing as well as future customers. At the most basic level, CRM software lets retailers store their current and prospective clients’ contact information, social media profiles, details on the calls made and emails sent, and such. More advanced systems would allow the creation of meeting schedules, display of sales forecasts and pipelines, and the like. Thanks to this solution, sales and customer service reps won’t have a hard time looking up client information for lead generation purposes and after sales functions, which helps them build stronger interactions and relationships.

POS. Step into any physical store, gather up the products you mean to buy, and take it to the store’s sales counter to pay for your purchases. You’ll see that the cashiers use specific equipment such as a barcode scanner, cash register or drawer, computer, touch screen display and receipt printer. This is the store’s point of sale or POS system, and it requires the appropriate software to successfully tally the cost, conduct the sales transaction and create and maintain records of all transactions. The best POS software makes managing multiple retail processes (business intelligence store operations, inventory control, payment solutions, merchandising, and such) smoother and more productive. The result would be simplified processes, reduced costs, and increased revenue for the business.

Ecommerce. Most retail businesses today complement the performance of their physical stores by incorporating the use of an online platform. Setting up the best ecommerce platform for your business lets you take steps toward valuable benefits: providing customers with a new and different channel to access your offerings, building customer loyalty, streamline inventory management, increase revenue, and improve overall customer experience. What’s more, this software can seamlessly integrate the management processes for both your physical and online store, making monitoring your sales across all channels simpler and more effective.

Principles for Setting Mergers and Acquisition Agreements in Perfect Order

bu19Moreover, when one is dealing with billions of dollars, every aspect of the deal and the risks must be noted down in the document.

In a merger or acquisition transaction, there are three basic steps: (I) the negotiation period or pre-definitive agreement period; (ii) the definitive agreement or agreements; and (iii) closing.

The first and foremost step in an M&A deal is executing a confidentiality agreement and letter of intent. To keep the deal confidential, a confidentiality agreement must be signed on parameters on the use of information. The confidentiality agreement may contain other provisions unrelated to confidentiality such as a prohibition against solicitation of customers or employees (non-competition) and other restrictive

A letter of intent or Term Sheet, is a preliminary document potential buyers might send over when buying a company. A letter of intent must contain some sort of exclusivity provision known as no shop or window shop provisions. To spell it out, a no shop provision prevents the parties from entering into any discussions or negotiations with a third party that could negatively affect the transaction. A window shop provision allows for some level of third-party negotiation or inquiry like a party cannot solicit other similar transactions but is not prohibited from hearing out an unsolicited proposal. All these provisions must be clearly spelt out in the deal agreement.

The definitive agreement, which is also known as Share purchase agreement, spells out the finalised deal terms that the buyer and seller are agreeing to During the period between signing and completion, it is important for the buyer to have some influence on the conduct of the business. The buyer must take undertakings from the seller that the target will not do anything out of the ordinary during this period without the buyer’s consent.

In any sale and purchase agreement of M&A, the parties agree to transfer title to the shares (share acquisition) or the assets of the business (business acquisition). It will also state the amount of the purchase price and the timing of the payment. The most common forms of consideration are cash, shares in the buyer (often called a share for share exchange) or loan notes/debentures. For public companies, the price is always given on a per share basis, with the exact share count and the treatment of dilutive securities spelled out later on.

In order to protect a deal, the common deal protection is a standstill agreement. A standstill agreement prevents a party from making business changes like selling off major assets, incurring debts or liabilities or hiring or firing management teams. An important aspect of the deal agreement is the representations and warranties which provide the buyer and seller with a snapshot of facts as of the closing date. From the seller the facts are generally related to the business like title to the assets, no undisclosed liabilities, no pending litigation or adversarial situation likely to result in litigation, taxes are paid and there are no issues with employees. From the buyer the facts are generally related to legal capacity, authority and ability to enter into a binding contract.

In the indemnification or remedies part of the agreement, it provides the rights and remedies of the parties in the event of a breach of the agreement, including a material inaccuracy in the representations and warranties or an unforeseen third-party claim. The agreement must clearly spell out the regulatory issues and how to address them.

Key Due Diligence Activities In A Merger And Acquisition Transaction

bu18Proper due diligence at every stage will make the M&A a grand success

By planning the merger activity carefully and analyzing every issue that may arise, the target company will be better prepared to successfully consummate a sale of the company. The buyer is concerned not only with the likely future performance of the target company as a stand-alone business but must understand the extent to which the company will fit strategically. Evaluating the commercial attractiveness of an M&A deal involves validating the target company’s financial projections and identify the synergies.

The primary goal of due diligence in the M&A process is for the buyer to confirm the seller’s financials, contracts and customers. Due diligence starts the moment the letter of intent (LOI) is signed. All due diligence information must be made available to the buyer from the seller. Due diligence is a vital activity in M&A transactions, and may consume several months of intense analysis if the target firm is a large business with a global presence.

First and foremost, the buyer must evaluate all of the target company’s historical financial statements and related financial metrics. It must look at the reasonableness of the target’s projections of its future performance. The buyer must look at the extent and quality of the target company’s technology and intellectual property. It must focus on the domestic and foreign patents and whether the company has taken appropriate steps to protect its intellectual property including confidentiality and invention assignment agreements with current and former employees and consultants.

The buying company must look at customers and sales. The buyer must fully understand the target company’s customer base across all geographies including the level of concentration of the largest customers as well as the sales pipeline. The company must look whether there will there be any issues in keeping customers after the acquisition and what are the sales terms or policies, and have there been any unusual levels of returns or exchanges offered by the target company to acquire new customers.

The company must look at the target company’s employee and management issues. The buyer must understand the quality of the target company’s management and employee base and look at information concerning any previous, pending, or threatened labor stoppage. The buyer must look at employment and consulting agreements, loan agreements, and documents relating to other transactions with officers, directors, key employees, and related parties. Since integrating the employees is the most difficult part in any deal, the buying company must evaluate every aspect of the deal.

Lastly one must look at the tax issues depending on the operations of the target company. Central, state and foreign incomes sales and other tax returns filed must be look into. To make a deal successful, experienced due diligence and integration managers must be involved in these mergers, and there must be high-profile, executive-level participation from both sides. A strong analytical team must drive the market and competitive assessment, and the human resources team needs to focus on organizational and cultural issues. If there are areas of consolidation, functional representation is critical to ensure buy-in from management.

Two Great Tips To Build Your Business

bu13Two ways to build your business faster

Hi guys, how do you feel about your business today? That is a question you should ask regularly, because if you are not in love with your business how can you possibly interest others.

We all have off days, but they should be the exception rather than the rule, so to cheer you up here are two corking ideas to revitalise your business.

GO PROSPECTING WITH OLD CUSTOMERS

It never ceases to amaze me that so many people spend fortunes on trying to get new customers and never bother to keep in touch with previous happy clients.

Get your old receipt book out and just check how many potential customers that know you, are lurking there.

Dependent on what business you are in, create something that you can offer to these old clients that not only gives them some value but also says HELLO I would love to do business with you again.

You will be surprised at how many will react to your reaching out to them and once they respond, you will have opened a conversation that could well end in more business.

Don’t keep trying to load up the front of the truck, if potential clients are falling off the back.

BE CREATIVE NOT COMPETITIVE

So many people get too involved at being competitive. My suggestion is that you find your point of difference and enhance that. People are looking for solutions to their problems and are time strapped, so if you can point out a problem and offer a solution you are in a field of one and not in competition.

A mistake many people make in business, is to constantly monitor other businesses prices and although this should be loosely monitored it is not so important if you are offering something different.

Once you find out exactly what problems your clients have and offer them a solution, it is amazing how far down the line price becomes a deciding factor.

Have faith in what you are doing and tell your customers with confidence how your goods or services will benefit them.

Business is changing and the more effort you put in to communicating with your customers correctly, the easier your sales will be.

Once you have belief in your business it is so easy to convince others.

Do these things properly and you will notice that you feel different and your business will grow without too much extra effort.