Business For Sale Contracts: Understanding the Agreement to Purchase
The Basic Business For Sale AgreementWhether you are buying a business or selling one, a certain number of legal papers are a necessary part of that transaction. One of the most important is the Business For Sale contract. While the exact form of this document may vary from state to state (or from country to country) depending upon various laws that govern the sale of a business, every Business For Sale agreement will have common provisions regardless of the jurisdiction in which it is filed. Much of the language may be considered “boilerplate,” which is a block of text that can be reused from one contract to the next. The purpose of a Business For Sale contract is to explain, in great detail, exactly what is being sold to the buyer, at what price, and under what terms.Standard Contract ProvisionsThe Business For Sale agreement will begin with something called “recitals,” which include the names of the two parties involved in the transaction and explain the purpose of the document. It will go on to list a definition of terms, so that there is no misunderstanding by either side as to the meaning of such words as “stock,” “transfer date,” “warranties,” and so on. There may also be sections that address the following elements:• How much of a deposit the buyer will pay, when the balance is due, how any seller-based financing will be repaid, and under what terms.• Whether or not employees will be retained, and how the change in ownership may affect things like retirement plans and other benefits.• Which assets are included in the transaction, which are not, and how the current market value has been calculated.• How existing company debts and liabilities will be treated.• A listing of any warranties that relate to the equipment on hand.• The contracts and leases that will accrue to the new buyer, plus an explanation of their terms and conditions.• How any buyer / seller disputes will be resolved.Key Terms to KnowEven for people who have bought and sold many businesses in the past, the importance of understanding the unique language of a Business For Sale contract cannot be overstated. Here are a few terms that often crop up in a Business For Sale agreement, along with some basic definition of their meaning within this context:• Letter of intent – This document often precedes the actual Business For Sale contract, but it may contain a number of legally binding provisions that carry over into the primary sales agreement; this may include some non-disclosure language as well as a promise to negotiate in good faith.• Cash flow statement – A declaration of how much cash a company has on hand at any given time (reported quarterly and annually), as well as an accounting of how the money was obtained: from operations, investing, or financing; the purpose of the cash flow statement is to offer information on the company’s fiscal health and its ability to pay bills.• Due diligence – This catch-all phrase refers to the process a prospective buyer goes through in order to investigate the value of a company; material to be reviewed under due diligence may include balance sheets, profit-and-loss statements, patent filings, equipment leases, and so on.• EBITDA – This acronym stands for “earnings before interest, taxes, depreciation, and amortization.” EBITDA proves useful in the ability to compare one company’s value against another’s by eliminating how different financing or accounting methods may skew an accurate comparison; it essentially levels the playing field for firms that are heavily invested in expensive assets that are subject to long-term write-offs.• FF&E – These initials stand for “furniture, fixtures and equipment, referring to hard-asset items that are likely to be included in the sale of a business; even though these items are subject to steep depreciation (just imagine how much a PC bought in 1999 is worth today), understanding the value of FF&E is a vital part of comprehending the value of the company.• Seller’s discretionary cash flow (SDCF) – While knowing a company’s net earnings will help a buyer understand its potential profit, oftentimes owners will pay for things through the company rather than personally due to tax-deductible considerations. By adding back to the bottom line such items as interest paid, the cost of a cell phone, or vehicle lease payments (things the new buyer may not pay), one will arrive at the company’s SCDF; this is a more accurate assessment of how much money a business has earned.
Automotive GPS Price Comparison – Points to Remember While Making a Choice
Automotive GPS are the dashboard mounted electronic devices which tell you your position on an electronic map and guide you to your destination via voice instructions. With a database full of various Points Of Interest (POIs), these ‘must have’ gadgets of modern day world, can take you to hotels, gas stations, hospitals, airports or even an unknown address, with quite an ease.However, as easy it is to use these systems, it is equally cumbersome to choose the perfect one for your vehicle, unless you opt for an Automotive GPS Price Comparison.The reason is simple, these systems come in a wide variety of brands, price ranges ($150 -$1000), features and upgrades. An Automotive GPS Price Comparison, available on numerous sites these days, helps make your decision easier, as it provides you the following information -• It tells you what all brands are available for the device, along with the different models available with each brand. You can also see the pictures of the devices available with brands like – Alpine, Garmin, Goodyear, Magellon Maestro, Navigon, Nextar, TellyNay, TomTom, etc.• The Automotive GPS Price Comparison allows you to go through the various features of each product and then compare them with those of the others. Some of the basic features available in all models are – Multi-segment routing facility, text-to-voice conversion, POI database, etc. Some model specific features are – screen size, onboard map database, traffic navigation systems and the multimedia features.• The reviews and star ratings on the Automotive Price Comparison sites give you a clear idea of the product’s performance on road. • Some of the Automotive GPS Price Comparison sites allow their users to choose from the mapping software, map books and service stations too.Here are a few vital points to be kept in mind while choosing your system-• Automotive GPS are of two major types – Stand-alone Navigation Systems and the PC/PDA based systems. The former further are sub categorized into – Entry level navigation systems, advanced navigation systems, fully loaded navigators, multi-purpose navigators and Europe navigation systems, based on their features.• It is important to know one’s specific requirements and then decide on the model, keeping the budget in mind.• While buying from an Automotive GPS Price Comparison site, ensure your system has all the basic features and its map database should suit your area of movement.• Before buying also consider the latest products in the market, what they offer and the possibility of updation in the system of your choice. Blue tooth integration, multimedia options and live updating of software’s are some of the frills worth considering.• You’ll can get a decent deal on an Automotive GPS Price Comparison site for $200 – $300.
Crypto Currency Vs Fiat Currency
Crypto currency vs. Fiat currency
Are you aware of the fiat currencies and the crypto currencies? They both are currencies in one form or the other and are open for public use across the world. But they are both different and distinct in their own ways. There is always one group that favors the use of cryptos, while the other has a soft corner for the fiat currencies.
In cashless society- crypto money play a huge role
If you have a look at the market of the 1970s and 1980s, you will find that the cash played the dominant role. But, with the change in the technology, electronic transactions have become the usual norm. Today, more and more people are influenced in becoming the cashless society. With the progress towards the cashless society, cryptocurrencies have a big role to play.
Crypto currency and fiat currency are always at loggerheads
Cryptocurrency and fiat currency are popular types of digital currency, especially when it is about an online transaction. They both are currencies currently in use in the market but have some differences in them. There is a hell lot of hypes that you will hear on a daily basis comparing the crypto money and the fiat money. This article will highlight the difference between the two in a more comprehensive and clear manner.
Differentiating in what the currencies stand for
Before going for the difference between the two, you must understand what do they stand for and how are they are defined.
The fiat currency is a legal tender that has the support of the central government, and it operates in the physical form. For instance, US dollars, British Pounds, Euro etc. On the other hand, the crypto currency is a non-legal tender, and doesn’t have any backup from the central government or bank.
Hence, the difference between crypto currency and fiat currency is noted as follows:
• Crypto-currencies are decentralized and global in nature. There are no one entity or government that controls the currency with their laws and regulations. The Fiat currency is centralized, under the control of the laws and regulations of the banks and government.
• Crypto-currencies have their existence only in the digital domain. On the other hand, you will find that the fiat currencies have a tangible and physical existence.
• There is a limited supply of crypto-currencies with a maximum set of them getting supplied in the market. Whereas, the fiat money has an unlimited supply as the government and bank are entitled to produce coins and paper money whenever the situation is required.
• The Bitcoin and other crypto type currencies are created by the computers, while the fiat currencies are issued by the local government and the banks.
• Cryptocurrencies are presented as the public and private code pieces. On the other hand, the fiat currencies are presented in the form of coins and paper money.
• The value of the crypto currencies is not recognized by the supply and demand of the market. Whereas, the fiat currency value is determined by the market regulations of supply and demand.
The different types of crypto and fiat currencies
In the last one decade, the popularity of crypto type currencies has emerged as a huge success. It was in 2009, when Bitcoin was first introduced, and years after several other types of crypto currencies have emerged. Starting from Litecoin. Dogecoin, Ripple to the Dcash and Zcash, there is a plethora of them. On the other hand, the fiat currency has a rich and ancient roots, with the Great British Pound, that dates back to 775 AD. It is considered as the oldest currency in the world that is still in use.
The differences in the anonymity between the two currencies
When you are using the fiat currencies, you need to undergo a user identification or verification process. You are asked to upload a recent picture of yourself and some of the required documents to be issued as per the public authorities. You don’t need to undergo any of the required processes with the crypto currencies. Though your personal information and confidential details don’t get public, but all your transactions are recorded and tracked in both the fiat and the crypto currencies.
Fiat currency vs crypto currency: transparency level
• The transparency level with the crypto type currencies are considered to be more. This is because the revenue streams are displayed in a public chain. Everyone can witness their own and others’ transactions.
• The fiat or govt. currencies are not transparent, as there are not public chains to see the revenue streams of the people.
A comparative historical roots
If you compare the crypto money with that of its counterpart, fiat or government currency, you will find that their existence and creation brings the difference. The Fiat or government currency, dates back its existence as early as 775 AD with the introduction of the Great British Pound. This is why fiat type currency is easily accepted by the people all over.
On the other hand, the crypto coin was perhaps first introduced only a decade ago, with the introduction of Bitcoin in 2009. The challenge that the Bitcoin and other crypto currencies face is catching up with the immense popularity and increasing fan base of the fiat currency. Crypto currency, is no doubt gaining importance and popularity in the economic market, but it has still not been accepted widely in the society as the fiat currency.
A comparative history of the two currencies:
• It was in the 11th century, when the Chinese Song dynasty was perhaps the first one to issue the paper money. It was not allowed to exchange with valuables like gold and silver or silk.
• There were Tally sticks that were introduced as a fiat or government currency. 1100 Tally sticks were introduced as a combat for the shortages in gold.
• 1971, was the year, when the fiat currency received a worldwide recognition. President Nixon introduced it in order to eliminate the dollar pegging system to gold.
• It was in 1998, when the idea of an anonymous electronic cash system emerged by Wei Dai. Bitgold-the very first crypto currency was created by Nick Szabo, but it didn’t receive as much attention as Bitcoin.
• In 2009, Bitcoin was introduced in the market, that became the first crypto currency that was accepted across the globe. In 2011 and after, a series of several other crypto currencies were introduced. Some of the popular ones include, Litecoin, Dogecoin, Ethereum, Ripple, Zcash, Dash and so on.
The traits of both the currencies
The potential of the crypto type currencies and fiat currencies, accessing their traits is important. You will find that in some of the criteria, Bitcoin and other crypto currency is superior than the fiat or government currency, and in some cases, the latter surpasses. It is absolutely your call to choose the type of currency (crypto type currency or fiat type currency) based on your personal needs and requirements.
Let us compare their traits with respect to certain factors.
• Both the crypto coins and fiat type currencies are interchangeable in nature.
• As per the portability is concerned both the currencies secure more or less the same position.
• With respect to the non consumable criteria, crypto currency and fiat type currency have the equal status.
• Crypto type currencies have high durability as compared to the fiat-currencies that have moderate level of durability.
• Both the crypto or virtual currencies and the fiat or government currencies ensure secure and safeguarded transactions and exchange.
• Crypto or digital currencies are highly divisible in nature. On the other hand, the fiat type currencies are moderately divisible.
• In terms of the transaction process, the crypto currencies are easy and hassle free. Whereas, on the other hand, the traction process associated with the fiat currencies are easy, but not like the cryptos.
• The crypto based currencies are decentralized and global in nature, unlike the fiat currencies that are centralized and functions under the laws and regulations of the government.
• The crypto based currencies have high scarcity, where as, the fiat currencies are unlimited as the government can issue coins and paper money whenever there is a need.
• The crypto based currencies are based on mathematical algorithms, and are programmable. The fiat currencies are not at all programmable.
• The fiat currencies are sovereign in nature, while the crypto currencies are not.
The process of the functioning of the currencies
You can find the significant differences between the crypto or digital currencies and the fiat currencies with the way they both operate and the transaction process that take place. They are contrasting in nature. The transfer of money using the Bitcoin is very quick, and you absolutely don’t need any third party association.
On the other hand, if you are involved with the money exchange using Fiat type currency, a mobile wallet is in use. You can exchange an amount of e-money that gets transferred into the equal e-value amount. Both the fiat and the crypto currencies enable you to purchase everything that you desire. But the processes involved are absolutely distinct from each other.
Depending on the things you purchase, you will find that one currency form is better than the other. This is absolutely your choice.
Is Bitcoin, a crypto currency better than the fiat-currency?
The long term benefits and the capability of the Bitcoins is still not established. But it has been predicted by the crypto currency gurus and experts, that they will go a long way, especially revolutionizing the way the online transactions are done. In the current market, the Bitcoin is mainly included in the online casinos and the gambling, but it is not limited to it.
Furthermore, when you compare the fiat currencies, the Bitcoin allows you to seize the power and authority from the banks and the government since it is not controlled. The cryptography based currency has the capability to create or come up with the free market capitals. Fiat currencies are affected by the inflation and the changes in the market, unlike the crypto based currencies. Such aspects make individuals believe that cryptograph based currencies will soon take over the mainstream currencies and bring a transformation in the way the money is used.
Why is Bitcoins considered to be a better aspect than the fiat type currencies?
• Bitcoin gives you the opportunity to re-create a free market capitalism.
• The power of controlling the money is absolutely with the individuals, and not with the banks like the fiat type currencies.
• When there is an inflation, the Bitcoin is not affected. But the Fiat type currency will be easier to lose and get affected by it.
• The Bitcoin currency is easy easier to exchange and transfer as compared to the fiat or government currencies.
• The transaction fees involved with the Bitcoin are way cheaper and easily affordable.
Crypto currencies seem to be a favorable option among the people
The fiat type currencies are the centralized and legal way of exchanging money. But, the crypto currencies have acquired immense popularity in the past few years. There will never be anyone who would act as a middle man, like the case with the banks. Moreover, the cryptos are way cheaper and less expensive that the conventional fiat currencies.
Send money anywhere directly without waiting for the bank’s approval
You can send money to anyone in the world directly, and it is super fast. The money gets cleared within a few minutes time. You don’t have to wait for the traditional clearing and verification processes of the banking systems, which might take up to several days to get a clearance. Since it is decentralized and doesn’t come under the law and regulations of the government, nobody has any power to do anything with your account.
The blockchain technology has a very big role to play
Thanks to the crypto currencies, that gives us the power and the authority to become our very own bank, and take control over our finances. It is because of the blockchain technology that offers a higher level of sophistication while dealing with the finances. In fact, there are some mainstream financial industries that have started incorporating the idea of the technology.