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Topic .Source: Chapter 13 Planning for the Harvest (Small Business Management 17th ed. Longenecker, Petty, Palich and Hoy) - Essay Example

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When the profit margin of a company falls because the market has consolidated in such a way that the consumers have a stronger bargaining power than was the case before, it becomes prudent for the small business owner to sell the business (Longenecker,2014). In addition to the…
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Topic .Source: Chapter 13 Planning for the Harvest (Small Business Management 17th ed. Longenecker, Petty, Palich and Hoy)
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"Topic .Source: Chapter 13 Planning for the Harvest (Small Business Management 17th ed. Longenecker, Petty, Palich and Hoy)"

Download file to see previous pages The buyer wanted to purchase the business was to set pace for further acquisition of sunglass companies. By retaining Ed as a consultant, the buyer wanted to tap the expertise and experience that Ed has since he was the one managing the family business. This means that the buyer did not want to start from scratch learning how the business was being run. He wanted to learn from Ed himself who had the knowledge. The buyer also wanted Ed around so that he could seek his advice in case the buyer encountered problems after purchasing the business.
The son-in-law was part of a management team that handled the business before the buyer purchased it. Therefore, the son-in-law understands the business completely, and will, therefore, be instrumental in ensuring stability of the business. Retaining some members of the former management team helps in ensuring continuity of the business after it has been sold (Wade, ...Download file to see next pagesRead More
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