Fewer “crazy signs.” More karaoke.
That could be the future for Club Med, the French resort operator,
which said Monday that it had received a $700 million buyout offer led
by its two largest shareholders, an investment unit of the French
insurer AXA and a Chinese conglomerate called Fosun International.
The proposed deal gives a Chinese company an unusually visible role
in the acquisition and development of a prominent Western brand, which
was founded in 1950 by a Belgian water polo player and for years defined
the packaged exoticism of beach vacations for Europeans and North
Americans. Now, though, the ascent of the Chinese tourist is helping
reshape the world’s idea of the ideal getaway.
Club Méditerranée
has long been known for the blend of escapist fun and Frenchness in its
vacation formula — including the staff’s frequent performance of
synchronized, heavily gesticulated dance moves set to pop music.
With Chinese co-ownership, Club Med cannot help becoming a bit less
French. It has been hit hard by the euro crisis, during which its name
has been borrowed by economists as an epithet for the debt-ridden and
austerity-ravaged countries of Southern Europe.
Club Med is looking to emerging markets, especially China, for new customers and new resorts, which it calls villages.
Read More : http://dealbook.nytimes.com/2013/05/27/club-med-targeted-in-700-million-privatization/?ref=business
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Tampilkan postingan dengan label Week. Tampilkan semua postingan
Selasa, 28 Mei 2013
Rabu, 28 Desember 2011
How to Write an Exit Strategy for Your Business
Exit strategy is a predetermined objective which is employed by a businessman who is planning to transfer his business responsibilities to another person, for various reasons. This article will help you to know how to write an exit strategy.
Exit strategy should be planned, keeping in mind the long and short-term objectives of the company owner. It should be considered and developed right from the beginning, once you have finalized with your long-term and short-term goals. Keeping the expectations according to your business, and planning the strategy will be helpful. Before you plan the exit strategy, it is required to concentrate on strategic planning, organizational planning, and financial planning of the company. The three important questions which you must address to yourself about your business before writing the plan are: to whom, by when, and for how much.
Writing the Exit Strategy
Choose the Best Exit Strategy for your Business
Write Down the Questionnaire Document
Choosing the source of capital is very important, as it will directly influence your decision to exit. The objective of choosing your financing is not only about increasing the funds, but it also concerns the cost of both money and relationships, if you are borrowing the money from your family or friends.
Dealing with the Taxing and Other Legal Issues
Discuss the legal and tax related issues with an experienced corporate attorney and other business accounting professionals. Some of the legal and tax issues that you must discuss with your advisors are listed below:
Legal Issues
Begin the planning and the implementations, once you have set the timeline. Implement the following actions before finalizing the agreements and the complete disposal.
From:
http://www.buzzle.com/articles/how-to-write-an-exit-strategy-for-your-business.html
Exit strategy should be planned, keeping in mind the long and short-term objectives of the company owner. It should be considered and developed right from the beginning, once you have finalized with your long-term and short-term goals. Keeping the expectations according to your business, and planning the strategy will be helpful. Before you plan the exit strategy, it is required to concentrate on strategic planning, organizational planning, and financial planning of the company. The three important questions which you must address to yourself about your business before writing the plan are: to whom, by when, and for how much.
Writing the Exit Strategy
Choose the Best Exit Strategy for your Business
- Selling the business to a family member.
- Selling the business to other company, which is usually larger than yours (acquisition and merger).
- Selling the business to Employee Stock Ownership Plan (ESOP), in which the stocks of the company is sold to the employees of the company itself.
- Initial Public offering (IPO) is a risky strategy in which the stocks of the company are sold to the public. The investors need to take a risk because the traders get in (buy stocks) and out (sell stocks) and may cause a financial swing.
Write Down the Questionnaire Document
- How much investable assets should I have in my account?
- What would be the tax impact on the amount that I would receive after I quit?
- What are the legal agreements that I should sign before I complete the disposal?
- Does my business have the required opportunities and value from the view of the buyer?
- How can I clear my debts, successfully?
Choosing the source of capital is very important, as it will directly influence your decision to exit. The objective of choosing your financing is not only about increasing the funds, but it also concerns the cost of both money and relationships, if you are borrowing the money from your family or friends.
Dealing with the Taxing and Other Legal Issues
Discuss the legal and tax related issues with an experienced corporate attorney and other business accounting professionals. Some of the legal and tax issues that you must discuss with your advisors are listed below:
Legal Issues
- Liability of Owners, officers and directors
- State and federal security laws
- Rights of minority owners
- Cost of transfer of ownership
- Buy-sell agreements with shareholders and partners
- Capital gains upon transfer or sale of the business
- Corporate and personal taxes
- Properties owned
- Reasonable compensation limits
- Retirement plans
- Income tax
- Capital Gains Tax (CGT) tax
Begin the planning and the implementations, once you have set the timeline. Implement the following actions before finalizing the agreements and the complete disposal.
- Train the new managers.
- Start your debt reduction program.
- Update your business plan.
- Dispose the loss-making subsidiaries and surplus machinery.
- Approach venture capital backing for MBO (Management Buyouts).
- Discuss the propositions with the concerned bank management.
- Appoint lead adviser.
- Conduct environmental audit.
- Reduce the stock levels of your company.
- Review personal financial positions.
- Undertake mock due diligence.
- Most importantly, plan the activities to get engaged after your exit from the business.
From:
http://www.buzzle.com/articles/how-to-write-an-exit-strategy-for-your-business.html
Jumat, 18 November 2011
Automatic spending cuts a new threat to US economy
WASHINGTON (AP) -- Just as the U.S. economy is making progress despite Europe's turmoil, here come two new threats.
Deep spending cuts are set to kick in if a congressional panel can't agree by Thanksgiving on how to shrink the budget deficit. And Congress may let emergency unemployment aid and a Social Security tax cut expire at year's end. Either outcome could slow growth and spook markets.
Analysts are concerned. Yet most aren't panicking.
Many say the economy and markets can withstand the blows. That's because Congress or the Federal Reserve could take other steps next year to blunt the automatic cuts and lift the economy. And investors expect so little from the congressional panel that they're unlikely to overreact if no deal is reached.
"There's no doomsday scenario in reducing government spending," said David Kelly of JP Morgan Funds.
The 12-member bipartisan panel, or supercommittee, was created in August to defuse a political standoff over raising the federal borrowing limit. It's supposed to find at least $1.2 trillion in deficit cuts by Nov. 23. If it fails, federal spending would automatically be cut by that amount over nine years, starting in 2013.
The law triggers cuts in programs prized by both parties: social services such as Medicare for Democrats, defense spending for Republicans.
The panel appears to be deadlocked.
Economists say a stalemate makes it harder for Congress to extend the Social Security tax cut and unemployment benefits. On the other hand, if the supercommittee does forge a deal, it might include an extension of those benefits. Or it could at least clear the way for an extension later.
The Social Security tax cut gave most Americans an extra $1,000 to $2,000 this year. Unemployment benefits provide about $300 a week. Most of that money quickly and directly boosts consumer spending, which drives the economy.
By contrast, an expiration of those benefits could cut growth by about three-quarters of a percentage point, economists say. Throw in other cuts, like those passed in the August debt deal, and all told, federal budget policies could subtract 1.7 percentage points from growth in 2012, according to JPMorgan Chase and Moody's Analytics.
Given the tepid economy, such a hit could be damaging.
"It would be very difficult for an economy that's doing well to digest, let alone one that's barely growing at potential," said Ryan Sweet, an economist at Moody's. "That could unwind a lot of the improvement we've seen so far."
The economy grew at an annual rate of 2.5 percent in the July-September quarter. Some analysts fear it could fall below 2 percent next year, especially if the emergency unemployment benefits and Social Security tax cuts aren't renewed.
The U.S. economy faces other threats, too — from persistently high unemployment to Europe's spreading debt crisis, which could hasten a recession.
If the automatic spending cuts take effect, the defense budget could be cut by nearly $500 billion over nine years. Some contractors are nervous.
Wes Bush, CEO of Northrop Grumman, has told analysts that the company is bracing for spending cuts.
"It's certainly going to be a more challenging environment" next year, he said.
Another wild card: Some investors fear that the supercommittee's failure would spark fresh downgrades of U.S. debt. Standard & Poor's downgraded the government's long-term debt in August. That contributed to a stock market plunge. It's possible that a deadlocked supercommittee would lead the two other major rating agencies — Fitch and Moody's — to follow suit.
Yet S&P's downgrade did little to tarnish U.S. debt. Treasury prices rose, and yields fell. Bond investors still saw Treasurys as a super-safe investment. Federal borrowing costs actually declined.
"S&P showed that when a rating agency downgrades the best-known security in the world, it has little impact," Kelly said. The market for U.S. Treasurys is so broad, accessible and transparent that ratings downgrades don't pose much threat, he noted.
Kelly said Wall Street is unlikely to panic given that expectations for the supercommittee "are so low as to be subterranean."
Even so, some traders appear to be positioning for a shock. So-called "defensive" sectors of the stock market, like healthcare companies and utilities, which tend to retain their value in a weak economy, have been outpacing the S&P 500 index as a whole.
In the past month, the economy has shown surprising strength. Reports this week showed that manufacturers are producing more goods and consumers are spending more. The number of people seeking unemployment benefits for the first time is at a seven-month low.
Still, more than once since the recession officially ended more than two years ago, the economy has displayed vigor only to stumble again. High gas and food prices and Japan's earthquake sharply slowed growth in the first half of the year. Congress' debt-ceiling fight sent consumer confidence to recession levels.
Sweet thinks there's a good chance Congress will end up extending the Social Security tax cut. Partly on that assumption, Moody's foresees 2.6 percent growth next year. For this year, analysts generally estimate less than 2 percent growth.
Lawmakers could make other policy changes next year to energize the economy. The tax cuts enacted during the Bush administration, and extended in 2010, are set to expire after 2012. Republicans will push to renew them.
Some of the automatic cuts set to kick in in 2013 could be delayed or altered. That's particularly true if the White House or either chamber of Congress changes sides in 2012.
And some economists say the automatic spending cuts could actually boost confidence a bit: They would reassure the world that the U.S. government can make progress in shrinking its deficit.
Even so, the supercommittee seems likely to fall short of its goal to help reduce the federal debt load.
And there's more pressure to come.
Priya Misra, an analyst at Bank of America Merrill Lynch, estimates that Congress will need to find $2 trillion more in cuts by August 2013 to prevent another credit downgrade.
Read More:
http://finance.yahoo.com/news/automatic-spending-cuts-threat-us-080312061.html
Deep spending cuts are set to kick in if a congressional panel can't agree by Thanksgiving on how to shrink the budget deficit. And Congress may let emergency unemployment aid and a Social Security tax cut expire at year's end. Either outcome could slow growth and spook markets.
Analysts are concerned. Yet most aren't panicking.
Many say the economy and markets can withstand the blows. That's because Congress or the Federal Reserve could take other steps next year to blunt the automatic cuts and lift the economy. And investors expect so little from the congressional panel that they're unlikely to overreact if no deal is reached.
"There's no doomsday scenario in reducing government spending," said David Kelly of JP Morgan Funds.
The 12-member bipartisan panel, or supercommittee, was created in August to defuse a political standoff over raising the federal borrowing limit. It's supposed to find at least $1.2 trillion in deficit cuts by Nov. 23. If it fails, federal spending would automatically be cut by that amount over nine years, starting in 2013.
The law triggers cuts in programs prized by both parties: social services such as Medicare for Democrats, defense spending for Republicans.
The panel appears to be deadlocked.
Economists say a stalemate makes it harder for Congress to extend the Social Security tax cut and unemployment benefits. On the other hand, if the supercommittee does forge a deal, it might include an extension of those benefits. Or it could at least clear the way for an extension later.
The Social Security tax cut gave most Americans an extra $1,000 to $2,000 this year. Unemployment benefits provide about $300 a week. Most of that money quickly and directly boosts consumer spending, which drives the economy.
By contrast, an expiration of those benefits could cut growth by about three-quarters of a percentage point, economists say. Throw in other cuts, like those passed in the August debt deal, and all told, federal budget policies could subtract 1.7 percentage points from growth in 2012, according to JPMorgan Chase and Moody's Analytics.
Given the tepid economy, such a hit could be damaging.
"It would be very difficult for an economy that's doing well to digest, let alone one that's barely growing at potential," said Ryan Sweet, an economist at Moody's. "That could unwind a lot of the improvement we've seen so far."
The economy grew at an annual rate of 2.5 percent in the July-September quarter. Some analysts fear it could fall below 2 percent next year, especially if the emergency unemployment benefits and Social Security tax cuts aren't renewed.
The U.S. economy faces other threats, too — from persistently high unemployment to Europe's spreading debt crisis, which could hasten a recession.
If the automatic spending cuts take effect, the defense budget could be cut by nearly $500 billion over nine years. Some contractors are nervous.
Wes Bush, CEO of Northrop Grumman, has told analysts that the company is bracing for spending cuts.
"It's certainly going to be a more challenging environment" next year, he said.
Another wild card: Some investors fear that the supercommittee's failure would spark fresh downgrades of U.S. debt. Standard & Poor's downgraded the government's long-term debt in August. That contributed to a stock market plunge. It's possible that a deadlocked supercommittee would lead the two other major rating agencies — Fitch and Moody's — to follow suit.
Yet S&P's downgrade did little to tarnish U.S. debt. Treasury prices rose, and yields fell. Bond investors still saw Treasurys as a super-safe investment. Federal borrowing costs actually declined.
"S&P showed that when a rating agency downgrades the best-known security in the world, it has little impact," Kelly said. The market for U.S. Treasurys is so broad, accessible and transparent that ratings downgrades don't pose much threat, he noted.
Kelly said Wall Street is unlikely to panic given that expectations for the supercommittee "are so low as to be subterranean."
Even so, some traders appear to be positioning for a shock. So-called "defensive" sectors of the stock market, like healthcare companies and utilities, which tend to retain their value in a weak economy, have been outpacing the S&P 500 index as a whole.
In the past month, the economy has shown surprising strength. Reports this week showed that manufacturers are producing more goods and consumers are spending more. The number of people seeking unemployment benefits for the first time is at a seven-month low.
Still, more than once since the recession officially ended more than two years ago, the economy has displayed vigor only to stumble again. High gas and food prices and Japan's earthquake sharply slowed growth in the first half of the year. Congress' debt-ceiling fight sent consumer confidence to recession levels.
Sweet thinks there's a good chance Congress will end up extending the Social Security tax cut. Partly on that assumption, Moody's foresees 2.6 percent growth next year. For this year, analysts generally estimate less than 2 percent growth.
Lawmakers could make other policy changes next year to energize the economy. The tax cuts enacted during the Bush administration, and extended in 2010, are set to expire after 2012. Republicans will push to renew them.
Some of the automatic cuts set to kick in in 2013 could be delayed or altered. That's particularly true if the White House or either chamber of Congress changes sides in 2012.
And some economists say the automatic spending cuts could actually boost confidence a bit: They would reassure the world that the U.S. government can make progress in shrinking its deficit.
Even so, the supercommittee seems likely to fall short of its goal to help reduce the federal debt load.
And there's more pressure to come.
Priya Misra, an analyst at Bank of America Merrill Lynch, estimates that Congress will need to find $2 trillion more in cuts by August 2013 to prevent another credit downgrade.
Read More:
http://finance.yahoo.com/news/automatic-spending-cuts-threat-us-080312061.html
Rabu, 16 November 2011
Convert your Arts and Crafts Hobby into a Business
Hobbies like arts and crafts offer a good business opportunity for those who really like spending their time creating artwork or unique craft items. With a little investment and some information on how to start an arts and crafts business, you will soon be ready to start selling your products successfully...
Each of us has a hobby, engaging in which gives us a feeling of satisfaction. Arts and crafts are a favorite hobby of many people, which also offers a lot to explore. This hobby can be and is often converted into a business that has low risk, low investment and can give a good amount of profit. Many experts recommend this idea to beginners and those looking for small business opportunities to increase their total monthly income. So, if you are starting an arts and crafts business, then here are some things to consider before you start it, and ways to work it out well.
Things to Consider Before Start-Up
If you have never been part of a business, the points given below will tell you how to start an arts and crafts business successfully.
* You need to plan the business well to avoid any situations where the investment cost is more than the profit earned, the order is delayed, or the customer is not satisfied.
* Start reading about the basics of small business management, to convert your arts and crafts hobby into a successful business.
* From the wide range of arts and crafts, you need to decide which type of products you will be selling.
* Make a list of easy crafts to make and sell and find out which items have the maximum demand among your target customers.
* In order to make your business score more among your competitors, try to have a set of products not sold by others.
* When you start planning when and how to start an arts and crafts business, you need to have a certain amount of money for the initial expenses, which mainly includes the cost of raw material.
* Open a separate bank account for your business. This will separate the entire cost and profit details from your personal account and let you know the exact numbers.
Starting Your Arts and Crafts Business
You can have the business setup right in your house or backyard. This is one of the advantages of turning your arts and crafts hobby into a business. When you start your business, the first step is letting people know about the same. Start with your friends and neighbors. Moreover, you can look for simple and low-cost ideas to advertise your business. This includes paper posters and small pamphlets. Photographs of ready artwork and craft items work best in this case. You can e-mail these to your friends, add them to your social networking profiles and post them on free classified advertisement websites.
Finding a market to buy the raw material is a very important part of this business. You need to browse through online websites, nearby stores and wholesale dealers to find good shops selling the basic material required for making arts and crafts at the cheapest rates.
Remember that you might not achieve sales that will level your investment cost, for a few months at least. Hence, you must expect 'no profit' for the first few months, until your business is set-up well, marketed properly, and gains popularity.
Dedicating enough time for your business is very essential, at least in the initial stage. Even if you are a working individual, make a time-table to distribute your tasks properly through the day, week and month, hence, avoiding any problems and meeting deadlines.
Taking Your Business to The Next Level
Once people are aware of your business and you have started getting enough orders to meet the production cost, it is time to take your business to the next level. Well, that is not as difficult as you might think! Promoting your products and increasing the variety of products you sell, is a good way to attract more consumers. You can contact shops which sell artwork and craft items and sell your products to them instead of finding direct customers.
You can also have an exhibition-cum-sale of your products, say once in 3 or 6 months. Put up your items for sale on online shopping websites to attract more customers with minimum efforts. Taking good photographs of your work is very essential for this step.
Well, there are no really any strict rules to be followed while turning your hobby into a business. All you need is planning, dedication towards your work, good communication skills, and ideas to grow your consumer base. Explore areas that are not common and give importance to each part and step while you set-up your arts and crafts business.
By Mamta Mule
Published: 11/16/2011
Read More:
http://www.buzzle.com/
Each of us has a hobby, engaging in which gives us a feeling of satisfaction. Arts and crafts are a favorite hobby of many people, which also offers a lot to explore. This hobby can be and is often converted into a business that has low risk, low investment and can give a good amount of profit. Many experts recommend this idea to beginners and those looking for small business opportunities to increase their total monthly income. So, if you are starting an arts and crafts business, then here are some things to consider before you start it, and ways to work it out well.
Things to Consider Before Start-Up
If you have never been part of a business, the points given below will tell you how to start an arts and crafts business successfully.
* You need to plan the business well to avoid any situations where the investment cost is more than the profit earned, the order is delayed, or the customer is not satisfied.
* Start reading about the basics of small business management, to convert your arts and crafts hobby into a successful business.
* From the wide range of arts and crafts, you need to decide which type of products you will be selling.
* Make a list of easy crafts to make and sell and find out which items have the maximum demand among your target customers.
* In order to make your business score more among your competitors, try to have a set of products not sold by others.
* When you start planning when and how to start an arts and crafts business, you need to have a certain amount of money for the initial expenses, which mainly includes the cost of raw material.
* Open a separate bank account for your business. This will separate the entire cost and profit details from your personal account and let you know the exact numbers.
Starting Your Arts and Crafts Business
You can have the business setup right in your house or backyard. This is one of the advantages of turning your arts and crafts hobby into a business. When you start your business, the first step is letting people know about the same. Start with your friends and neighbors. Moreover, you can look for simple and low-cost ideas to advertise your business. This includes paper posters and small pamphlets. Photographs of ready artwork and craft items work best in this case. You can e-mail these to your friends, add them to your social networking profiles and post them on free classified advertisement websites.
Finding a market to buy the raw material is a very important part of this business. You need to browse through online websites, nearby stores and wholesale dealers to find good shops selling the basic material required for making arts and crafts at the cheapest rates.
Remember that you might not achieve sales that will level your investment cost, for a few months at least. Hence, you must expect 'no profit' for the first few months, until your business is set-up well, marketed properly, and gains popularity.
Dedicating enough time for your business is very essential, at least in the initial stage. Even if you are a working individual, make a time-table to distribute your tasks properly through the day, week and month, hence, avoiding any problems and meeting deadlines.
Taking Your Business to The Next Level
Once people are aware of your business and you have started getting enough orders to meet the production cost, it is time to take your business to the next level. Well, that is not as difficult as you might think! Promoting your products and increasing the variety of products you sell, is a good way to attract more consumers. You can contact shops which sell artwork and craft items and sell your products to them instead of finding direct customers.
You can also have an exhibition-cum-sale of your products, say once in 3 or 6 months. Put up your items for sale on online shopping websites to attract more customers with minimum efforts. Taking good photographs of your work is very essential for this step.
Well, there are no really any strict rules to be followed while turning your hobby into a business. All you need is planning, dedication towards your work, good communication skills, and ideas to grow your consumer base. Explore areas that are not common and give importance to each part and step while you set-up your arts and crafts business.
By Mamta Mule
Published: 11/16/2011
Read More:
http://www.buzzle.com/
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