https://completemarkets.com/Article/article-post/2245/A-JOINT-VENTURE-IN-A-SMALL-TOWN/
... beginning of 1984, the principals entered into an agreement with our firm, ARI Services, Ltd., under which we now manage the agency and share in its ownership. The bank holding company principals retain ownership of the business that was on the books at the time the agreement went into effect. All new business is owned jointly by them and our firm. In this article, I'll explain how we sell insurance through this arrangement and share the proceeds from this business with our partners. Although this relationship is still in its infancy, I think it's safe to say that it has tremendous potential for our firm; and I have yet to see any serious drawbacks. ARI Services, Ltd., came into existence in 1981 in a merger of four firms. It has divisions dealing with auctioneering services, real estate, and insurance. We have premium volume of about $1.75 million. I am one of five owners of ARI Services and am in charge of its insurance operations. The bank agency that ARI Services now manages was operated for years as a profit center by the principals of a local bank holding company. The owners realized they lacked the time and expertise to develop the agency as fully as possible. They believed the agency had potential, however, and wanted to maintain an incidence of ownership in it. That left them with two options: Hire professional people to operate the agency or contract with a management service, which is essentially what they did by entering into an agreement with ARI Services. We were on good terms with the bank and its owners even before ...
https://completemarkets.com/Article/article-post/2423/Internal-Perpetuation-Key-Considerations/
... tense. This often is because assumptions were not communicated well at the beginning. As the process unfolds, both sellers and buyers will become more educated on matters such as the tax consequences of different deal structures that can change the outlook for both parties. Buyers might expect a "free ride," rather than taking to heart the term "sweat equity." In most buyouts, the first few years are supposed to be tough. You own the business as much as you own a house after a modest down payment and earn equity as you make the mortgage payments. If you don't deliver on your business plan, then the seller or bank can step in. CONCLUSION Buyers, keep in mind that if a seller wants to, they can call a few large buyers, hold an auction, and get top dollar. Sellers, keep your goals in mind as well as buyer's expectations. In private transactions, the deal needs to be fair to everyone — or there's no deal. As the transaction date approaches, interactions should feel more like discussions and brainstorming sessions than negotiations. There's no panacea for perpetuation. Plan 10 years ahead. Get help, and bring in the right resources. Most of all, hold open and frank discussions between the sellers and buyers to be certain that all parties understand the process every step of the way. Internal deals can deliver the best of all worlds if they're done right. Alfonso Ventoso is a vice president with Business Management Group (BMG), a management consulting firm that specializes in the insurance industry. To learn how BMG can ...
https://completemarkets.com/Article/article-post/2808/How-the-Bridging-Finance-Industry-Continues-to-Grow/
... at around £10.9 billion in outstanding lending, with forecasts expecting further growth over the coming years. Some analysts predict the market could exceed £12 billion as demand for flexible funding continues to rise. Growth has been supported by changing property markets, higher levels of investment activity, and borrowers seeking faster alternatives to traditional mortgage providers. Lending volumes can also be affected by broader economic and political factors, including general elections that influence the property market . Industry surveys also indicate continued confidence. One recent survey found that 62% of lenders expected origination volumes to increase, highlighting ongoing optimism across the sector. Common Uses for Bridging Finance Bridging loans are designed to provide short-term funding, usually until a property is sold or longer-term financing is arranged. One of the most common uses is purchasing property at auction, where completion deadlines are often just 28 days. Bridging finance is also widely used for property renovations, refurbishment projects, broken property chains, land purchases, commercial investments, and buying a new home before an existing property has been sold. Property developers frequently use bridging loans to secure opportunities quickly before arranging development finance or refinancing once construction or renovations have been completed. For homeowners, regulated bridging finance can provide the funds needed to purchase a new home before selling an existing one, helping prevent missed opportunities in competitive property markets. Similarly, with UK inheritance tax reaching 40%, beneficiaries may use a bridging loan to pay inheritance tax before probate is granted or before estate assets have been sold. As the market has matured, bridging finance has evolved from being viewed as a lender ...