Someone said that the only permanent thing in the world is change itself. For this reason we do not expect anything to last forever as it is today. What more do we need to be told? With this fact on the table isn’t it true that we need to keep ourselves updated about the changing legislation laws and regulations that govern our lives and our businesses?

Are you a business person who has had to file for bankruptcy before simply because you had more debts than assets and you could not manage to pay your debtors? Do you still recall what the law required of you and what the different chapters of the same required of you? Well then all that might be changing now.

There are new bankruptcy laws that are now in use and you need to familiarize yourself with them just incase you might find yourself in this sticky situation or you might know someone who is going through the same. Just to mention a few of the changing rules in the old law if you filed under chapter 13 it was easy to determine for yourself what you would be paying to your creditors on a monthly basis but that will no longer be possible.

In the new bankruptcy law the IRS will be involved in determining what you are worth per month after deductions of your basic needs of food clothing and rent and the remaining amount will be divided in certain proportions to your creditors. Life will be a lot harder for debtors under this new law but when the going gets tough the tough get going.

About the writer:  Peter Gitundu Researches and Reports on Bankruptcy. For More Information On New Bankruptcy Laws Read More Of His Articles Here NEW BANKRUPTCY LAWS

Related posts:

1. Bankruptcy Rules
2. Some Facts About Bankruptcy
3. What You Must Know Now About Filing Bankruptcy

Filing for bankruptcy is a legal process that involves the insolvency court the law and the attorneys. This is to say that the cases have to be well filed and the records well kept. The records are available in different courts in different countries but in some cases it is possible to get them online with special instructions and procedures.

If you are interested in knowing who has field for bankruptcy you may be required to pay some amount of money to access these database. You will also be provided with more information like the name of the bankrupt person and his address. If this is not sufficient you may be given other details like his date of birth and details of the insolvency records on file.

Insolvency records are a public documents and this is confirmed by the fact that the names of insolvent individuals companies or businesses are published in the newspapers not just for all to see but also as a requirement by the law. These names remain in the records for a period of up to ten years or up to three months after discharge.

Some of the details that you might never be able to get from insolvency records include the names of disqualified directors company insolvency and canceled or withdrawn insolvency orders. In some countries it is possible to conduct a search for these records online by visiting a specified web site. In others there are offices that one can visit which are specifically put up for these purposes.

About the writer:  Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Bankruptcy Records Read More Of His Articles Here BANKRUPTCY RECORDS

Related posts:

1. Some Facts About Bankruptcy
2. Bankruptcy Attorney Charges
3. Is Bankruptcy Right For You?

The first step is to do a little research to find a problem that needs to be solved. Truthfully you could just sit down and brainstorm. You know more then you realize. Through everyday experiences we figure out and learn how to do things. The same problems you have had thousands and others have has as well.

Sit down at your computer crack open MS word and get to typing. Put together a short 1015 page report that solves a problem. Once your done write out a simple sales page and then get it up online. If you don’t have a website of your own you can set one up using a free service such as weebly.

Once you have everything up and running its time to start driving traffic to your new site. You need traffic to make sales. Be aggressive. Write as many articles as you can. Create videos and submit press releases. The more traffic you get the more sales you will make.

Price your short report at just 7 dollars and you should be able to make 1000 pretty quickly. All you would need to sell is about 200 copies. Remember solve a problem and you will make money.

About the writer:  To learn more about short reports and how you can use them to make 10002000 in 24 hours online visit make money online fast.

Related posts:

1. The Easiest Way For Stay At Home Moms To Make
2. Use Online Mortgage Systems To Compare Mortgages
3. Saving Time And Money By Online Car Insurance Quotes

That is why affiliate marketing is so perfect for you. You don’t have to worry about any of those things. Your only job as an affiliate marketer is to drive traffic to the merchants site and they will take over from there. Once you make a sale you will be paid a commission.

Now your probably wondering how exactly do you go about driving traffic to the merchants website. Well Im going to tell you. One of the best ways to generate targeted traffic is via article marketing. Its free the only investment is your time.

Articles work great because they provide the prospect with information. Information builds trust and when a prospect trusts you they will more then gladly spend their money with you.

The more articles you write the more sales you will get. Don’t worry if your not great at writing articles. The more you write the better you will become. I don’t care how crappy your articles are if you write at least a hundred you will see some sales.

Now i’m not saying to write crappy articles. That’s a no no. But I am saying the more you write the more money you will make. So start writing some articles today and you will see a commission check before you know it.

About the writer:  To learn more visit affiliate marketing for stay at home moms

Related posts:

1. Term Life Insurance For Stay At Home Moms
2. Make Money Online By The End Of Tonight
3. Buying A Model Home

Insolvency is a state of being unable to pay your creditors because your liabilities exceed your assets. This situation is not very pleasant because it ruins your image and credibility. However you should not worry over it because millions of people go through it every year and if you may ask them its never easy to get through it but eventually you will. The worst part is that your insolvency remains on the records for up to ten years and in between that time you cannot file for insolvency again even though you may have cleared previous debts.

If someone had cosigned up for a loan with you that person may be forced to pay for your debts. This is why you need to be careful when you pick up on someone to cosign your loan. You can imagine the tension that may arise thereof if this person is your spouse who may at that time not be willing to pay up for your loans.

Bankruptcy laws protect you from losing all of your money and property. This is especially true if you file under chapter 13 because this gives the provision for you to settle your debts on a monthly basis from your regular income meaning that your assets will not be liquidated to settle your bills. After filing for bankruptcy your name will be published in the newspaper and definitely this will make potential creditors and business partners lose faith in you. However you can work on rebuilding your credit.

About the writer:  Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Bankruptcy Facts Read More Of His Articles Here BANKRUPTCY FACTS

Related posts:

1. New Bankruptcy Laws
2. Bankruptcy Records
3. Is Bankruptcy Right For You?

Once you are in a state of insolvency you will realize that you are now in legal proceedings that will require you to hire the services of a good lawyer. You have the choice of filing for bankruptcy on your own or you could wait for your creditors to sue you.

Filing for bankruptcy or facing court charges after your creditors have sued you calls for the engagement of an experienced attorney who will represent you in court and help you through the proceedings. In addition he or she will be the one to handle all correspondence with your creditors.

All this is not done for free. Different attorneys will charge you different fees anything ranging from 10002000. You can negotiate with them till you come to an agreement on how much you can afford to pay. This you will agree with me is a lot of money to part with. Thus you need to do your own research and be clear about what the bankruptcy attorney is supposed to do for you.

He should be your adviser as well as your representative in court. He should be in a position to explain to you all there is that you need to know about insolvency assist you in filling in the required forms and even try to get some of your debts canceled if possible. This way you will not feel as though you are moving from one bad situation to another and you will get value for your money.

About the writer:  Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Bankruptcy Attorney Charges Read More Of His Articles Here BANKRUPTCY ATTORNEY CHARGES

Related posts:

1. Bankruptcy Records
2. Some Facts About Bankruptcy
3. What You Must Know Now About Filing Bankruptcy

Here is what I did to help for my kids savings.Saving money for your kids future can help them out alot.Whether it is to help out with collegeso they can get a good education or just to save money for them.My parents never saved any money for me when growing upso I would like to save money for my kids and there future.Here is a way you can start a savings plan for your child.

If you have a new born baby and want to start a savings account for him or heryou could save a little bit of money weekly or save 20.00 or 40.00 a month and or save there birthday money until they are the age of 18 or when you think your kids are responsible enough to have the money and won’t do unresponsible things with the money.

You could start a savings plan for any kid any agebut the sooner you start to save for your kidsthe more they will have when they are at a responsible agelike 18 years or older.While saving for a couple of years and have enough money to enroll in an investment.

I would start out with a certificate of deposits also known as a CD.Because they are safer and more conservative than any other investment and the money will make more money and the savings will be more.If the money was in a savings account the interest rates are low to none.For info on a basic and easy way to invest in a CD.

About the writer:  Write different articles about how to.

Related posts:

1. Kids And Asset Protection
2. Seven Money Habits For A Wealthy Future
3. Consolidate Your Super For A Cash-filled Future

Before you sell yourself short talk to a mortgage company. Many lenders are more than happy to lend you money for a lucrative project because it means profitable business for them too. Construction loans are the backbone of many mortgage company portfolios and if you own a vacant lot that has market value lenders will normally lend you money based on the collateral of the vacant lot. You get cash to build a new house and after you sell the completed project you can pay back the loan and pocket the profits.
Other construction loans allow you to borrow money from the builder’s own sources in the same way that you might borrow money from an auto dealer to pay for the car you buy from them. Construction companies with their own mortgage sources may charge you higher interest rates however than conventional lenders.
Shop around for construction loans. More often than not deciding on a builder and the best source of funds will take longer than it actually takes to build the house but it is time well spent. A few interest rate points can make a difference of thousands or hundreds of thousands of dollars. Talk to lots of lenders and buil
For more read at http://www.marylandrealestatesecrets.com

About the writer:  Real Estate Investing Visit the Maryland washington DC Best Site for Learning and Discussing Creative Real Estate Investment. Find home for sale in Maryland Start learning today

Related posts:

1. Buying Maryland Real Estate: Choosing A Realtor
2. Developing Of Construction Bond
3. Secured Or Unsecured Loans Which Is Best For Me

Allow me discuss a few tips with you.

1. Never trust people who tell you that they can make you a lot of money over a very short period of time even if those people are driving very expensive cars live in home worth millions of dollars so on and so forth. The person who is willing to make you rich overnight is one that you should avoid believe me when I say this. In my previous article I noted that I was taken by three conartists who were associated with each other and they tossed me back and forth. Not until I was hit hard in a short time did I realize how good they were. No I am not talking about Nigerians or any other nationals but Americans right here in my hometown. Even as smart as I thought I was and with the resources I had to find information about these guys I still was not aware of their deceptions until I was hit hard and lost a lot. No I am not talking about thousands of dollars; try high five 5 to six zeros. The sad part is that two of these guys did not have any criminal records and they were all living in nice homes with a list of clients that signed up well before me and even believed in these guys long after me. Unfortunately one of those guys is still loose and hiding somewhere. The other two got just a little time because our system of justice only severely prosecutes a person who robs a bank financial institution. If a person robs a bank for 10000.00 dollars or so he will get over a decade of jail time but if a person robs millions from innocent people lets say at minimum 100 people that person gets a slap on the wrist or maximum 5 years. Thats justice for you and I.

The only way you can become rich is either with hard work or to hit the lottery which I call poor mans money. Since the ODDS of you or I winning the lottery is very very remote so lets be normal and try to make money the right way. That is by using your GOD GIFTTED BRIAN. By the way I know two people who won millions in the lottery and just a few short years later they ended up back in the same lifestyle they were before the winningso sad.

2. Never give your Social Security number SSN over the Internet or phone to anyone especially if that person is not a part of any institutions that you have done business with previously. I tell people it is better you lose a thousand dollars than losing your SSN to some stranger. When a deceptive person gets a hold of your SSN you will spend months trying to persuade creditors collection agencies and bureaus that you were not the one who opened the accounts and made so many charges. I received this book called Your Credit = Your Life Fix It Now! which offers a lot of information about fraud collection agencies protection and so much more. Please read this book. Even those creditors who insist on having your entire SSN MUST understand the fact when you tell them I cant give you my SSN over the Internet. If you already have an account with this creditor then they MUST ask you other questions such as list of transactions payment history etc. Believe me they know how what and when to ask the questions to know if you are the account holder. Dissolving fraud usually requires a lengthy fight and much aggravation. Sometimes it may require hiring attorneys and paying exurbanite retainer fees in an attempt to get their lives back on track. IS IT WORTH the headache frustration lack of sleep loss of so much money or even worse? I know a couple of people who did not listen to me and did the exact opposite of what I had been telling them

3. Do NOT volunteer checking savings investment account or credit card information to collection agencies. Lets assume you do not know how much I hate this word assume the bestcase scenario. Lets say that the collection agencies truly want to work something out with you for passed due accounts. When you agree to make A one time payment using a credit card guess what happens the following months and without your authorization. Now go ahead try to fight the additional draft. The collection agencies will tell you that we never agreed on a one time payment we agreed on a monthly payment. The credit card company WILL TELL you sorry you made an agreement and that the collection agency provided records. If you want to make a payment to a collection agency send the company Certified Check Cashiers Check or Money Order. Do NOT send your regular check. Some of these companies may even share/sell your personal and financial information to other companies. When you provide the information to one and another company also initiates its aggressive collection addressed in the book mentioned above would you be able to tell where this company received such accurate information? Can you prove it? I bet your answers are both No. I dont know how to do that So STOP giving out your information to people whose intentions are not to help you but to help their own paychecks. Please read Your Credit = Your Life Fix It Now! to learn more.

4. Nobody hands you free money. So when I call you and tell you you won all I need is a checking or saving account number to transfer all this money into your account please dont immediately jump up and down and get excited and give me all the information I need. You can act excited give me some bogus numbers if you want. Keep me on my toes so that you can get my information and pass it on to the FBI. But I bet most these calls come from private unknown or some other dead end numbers or do not allow reply call the number is not in service for incoming calls. If you want free money look around your house and start seeing the money you wasted on useless items that have not been used or stuff that was used only once You need to learn the concept of Saving Your Money. another book out there. Please take advantage of the knowledge base I provided for you.

5. Watch out for the Debt Consolidation Debt Settlement Debt Management or other similar companies. There is a lot to say about these. It is discussed in the credit repair book mentioned above. Here you leave all your accounts at a serious risk or if nothing else you may be defrauded out of money. It is very detailed in that book. However allow me to give you an example.

A couple of weeks ago a Debt Settlement company out of Florida somehow found my number to offer me help to settle my debts for a lot less. Dont ask me how they got my number I am a unique individual who wears several hats and most telemarketers dont know it. So I became interested since I try to protect others in a hope to reduce scam. I was so ready to jump on board and get ALL MY DEBT CONSOLIDATED AND UNSECURED DEBT PAID FOR A LOT LESS that I could not jump high enough for joy. I agreed to everything she said and answered all the questions the way she wanted to hear. She sent me a package from some network company in Boca and an 800DEBT number.

After reading the information included in the package I learned the trick of how people may get deceived. If I knew just a little less than what I know with a Equifax score of over 820 I would have DIVED on board head first without even having my hands or arms over my head. The document I received was suggestive to deception included misrepresentations of facts which can be misleading directing to commit fraud under false pretense by giving suggestive ideas. The funny part about all this was the numbers thrown in there for fees. Of course the deal looks good if I wanted to do this. Settling 35000.00 worth of debt for about 19250.00 of which 8750.00 of it was fees to a Law Center. The contract stated no down payment and monthly payments of 497.33 for 42 months were needed. Now multiplying the number of month 42 times the monthly payment of 497.33 equals to 20887.86 which is a bit higher than the Total Amount with Fees 55: 19250.00 as indicted on the agreement. Of course the deal is still good; because it would have saved me a little over 14000.00 dollars. Thats if the companys intentions were true and they are not in the business of robbing people I do not know. However is it ethical???? What are your thoughts? Please contact me and tell me. I do not know what the FL Attorney General A.G. and the US Department of Justice would say. But as stated in the Credit Repair book introduced above dont look for the government agencies to do their job correctly.

There is so much more.
6. Do NOT cosign a loan for someone else does not matter how close you are to that person unless you have the means and intent to make the monthly payment yourself irregardless of the person you cosigned for pays or not. I heard it all. I would like to hear someones story about a cosigned loan that remained good for the length of the loan. The best relationships break over this exception: childparents. You must either accept the fact that you will make the payment for the other person whether he/she pays you or not or do not sign the loan document. There is no other way about it. If you have good credit and want to help someone lets say your children or immediate family member with the benefits and power of your excellent credit then take the chance of signing the loan with the understanding that you will pay the loan no matter what. You do not have to announce your thoughts or decision but just remember that if the person makes late payments or defaults your excellent score is no more. And based upon how bad it damaged your credit the effect of such negative may not be removed off your credit reportscore for at minimum 2 5 years depending on how good your credit was/is on other accounts.

7. I advertised for something over the Internet specially Criglist and received so many emails from people who claimed to be from England or Australia. They all had the same thing in common. Bad or poor English yet claim to be educated and some even doctors or professors. So I decided to play their game. As I would receive their first email ALL were screaming SCAM. I prepared a Frequently asked questions list Q amp; A answered all questions anyone could have had about my item. I would cut and paste my FAQ to all inquires whether scam or not. In my FAQ I clearly presented that I do not accept money order personal or company check. The only way I accept funds is if it is Certified or Cashier Check from a reputable bank. I do NOT accept any funds over the amount to secure the item you wish to have. It seems that the deceivers do not even take the time to read and after a couple of emails they were ready to send me more than what was needed to secure the item. And they ALL asked me to Western Union the remaining/overage amount to them or their associate in another state or country so that they would be able to make travel arrangement to meet me. Yeah. Right!! In fact two of them went to the extend of sending me some homemade check or a copy of a printed check with copy signature. The moral of the story. First of all do NOT accept any funds coming from other countries IF you do not know the source. Do not send money elsewhere when the source is not verifiable through a federally know agencies. If and when you receive a check do NOT rush to the law enforcement because they cannot help you and will brush you off with some excuses. The only agency that MAY be interested to know is FBI in the U.S. or the national enforcement agency in your country. However if you receive cash/BILLS contact the U.S. Secret Service or the Department of Treasury or the security department of the Federal Bank in your country to verify of the currency is good. Even if the checks look very very legitimate you MUST contact the bank and see if the account is open good standing has funds the payees name is the actual account holder and much more. Tell the bank security department what you have. I would be careful with the check even if the bank says everything checks out and funds are there. Lets say that all is good and you want to deposit the check; do not send any money to anyone until at minimum 10 days after the check clears your account. I would still be careful because. If I give you a check and you cash it I may be able to dispute the check with my bank a month later.

8. Similar to No. 7 above do not accept employment of collecting funds for a large company in another country. How about having a parttime employment and collecting funds for me in your country. I will ask my associates or the companies in which my company is doing business in your country send you the payment you take your fee of 25 or 500.00 whatever we agree to and send us the rest through Western Union DHL or some expedited method. Please make certain you ship cash to me. It is a great deal. All you do is just wait for our payments from our clients to reach you rush to your bank deposit and take the portion over you fees out and send it to me quickly. Dont you love it?

These are only some of the simpler methods. I am certain that there are much complicated methods of scams out there. So it does not matter how much money you may have that losing a few hundred of thousand dollars may not matter to you or that how broke and desperate you may be and any opportunity and hope for making money may motivate you there are some things you do not want to do. It is like knowing a food is filled with poison and you intentionally eat it.

With love care and best wishes.
Mike Samadi

You can go to my website and post your Questions amp; Comments. Your personal information will remain confidential and is NOT sold or shared with anyone else.

Here is something to make you smile. A joke: I hope you dont find it insulting but funny. NOT FOR KIDS. Adult discretion is advised.

A man walked into a supermarket with his zipper down. A lady cashier walked
up to him and said “Your barracks door is open.”

Not a phrase that men normally use he went on his way looking a bit
puzzled.

When he was about done shopping a man came up and said “Your fly is open.”

He zipped up and finished his shopping. At the checkout he intentionally
got in the line where the lady was that told him about his “barracks door”.

He was planning to have a little fun with her so when he reached the
counter he said “When you saw my barracks door open did you see a Marine
standing in there at attention?”

The lady naturally smarter than the man thought for a moment and said “No
no I didn’t. All I saw was a disabled veteran sitting on a couple of old
duffel bags.

About the writer:  Mike Samadi is an author of several books and over 30 extensive consumer financial articles. He is widely known as a credit repair expert. Read Mike’s book “Bad Things happen to Good People. Your Credit = Your Life Fix It Now!” or “Saving Your Money” to gain knowledge and experiences needed to overcome your financial problems. Please visit the website at http://www.MasterCreditRepair.net to learn more and fix/maintain your credit and save money in all sorts of ways. The site is not just about credit repair. It will teach you about money management stopping scam so that you would not lose time nor money and so much more. Join his upcomming Membership site and team.

Related posts:

1. Using Paypal To Transfer Money Overseas
2. Protecting You The Consumer
3. What Is The Federal Debt Relief System

What a nice restaurant how much is it worth?

We are all able to judge if a restaurant is cool; or not based on its location its atmosphere the people the courtesy of the waiters the wine list and of course what we eat and what we pay for it. This article deals with a different type of judgement: what is the value of the restaurant itself? If You believe that Real Estate values depend on bricks and revenues just pass on. For those interested in valuing intangible properties instead just have a look. The location is Rome in Italy but Names and Values have been changed.

Introduction and approach

EqS Equity Studio was recently challenged to place a value on one of Rome’s most famous restaurant Marcello’s. It is located in the centre of Rome exactly where you would expect it to be. Believe me its one of the best places You may want to spend an evening dining out or if you can’t afford it just to have a cappuccino in its Coffee Lounge.

The first aspect when starting the job is defining what the value is. We came to the conclusion that Marcello’s value is the sum of the three different values:

a There is a value because in order to run its business Marcello’s holds an administrative license. That is naked and with no goodwill a first bit of value.

b Then Marcello’s has a value because it developed a Goodwill both as a Coffee Bar and as a Restaurant.

c Finally Marcello’s has a value because of its well known Trademark which captures people from all over the world.

We will not give Real Estate or Fixed assets appraisals: you do not need to read here to understand how to calculate these.

The Value of the administrative licenses

Marcello’s operates in the centre of Rome in Italy. To run its activity as Coffee Bar and Restaurant it needs an administrative license issued by the Rome Council. Marcello owns two licenses for the sale of food and beverages both acquired from the previous tenant and then authorised by the local authorities. The first license permits the sale of food and beverages while the second license permits the sale of alcoholics liqueurs.

The value of licenses varies every year based on the market conditions. We have asked a local firm in Rome specialised in the sale of Coffee bar licenses to sell us a full license for the same district in Rome and we have been asked the price of euro; 120.000 which is one of the highest price in town. With this amount we can therefore acquire today a full license similar to those of Marcello’ and use it in similar premises: we then value Marcello’s naked licenses with no label or goodwill a total of euro; 120.000.

The Value of the Goodwill

When transferring a commercial license the seller and the buyer transfer the goodwill of the restaurant. There are various aspects that determine the value of goodwill: some are related to the location other are related to the activity other to the people.

The location. The centre of Rome was celebrated in the movie La dolce vita; by Federico Fellini in year 1960. The movie introduced the usage of the word paparazzo; and although the film talks about the loss of values in a helpless moral atmosphere it gave a tremendous appeal to all the places of the set. Rome’ centre lost some of its appeal as a commercial district in the years 1990 ndash; 2000 but has returned to be a place full of coffee bars and fashion shops in the last few years. Difficult finding a better location in Rome.

The activity. Marcello’s is a glamour place sophisticated all new high target nice place to go. The Coffee Bar is full all day long especially for breakfast but never too crowded. No doubt that it is one of Rome’s more successful coffee bars. The restaurant is not as well positioned. During our visit at lunch time we counted the people in the outside and inside: a terrible low occupancy rate at lunch time better in the evening. The restaurant seems clearly not successful as it might be in such a famous district.

The people. Mr Franco Rossi the current owner and manager acquired Marcello’s only five years ago and did a great job both in terms of place and revenues. There are 40 people working at Marcello’s and the impression attending the site is that they are quite a lot. The service level according to Rome’s standard is good but the location of this restaurant might require a higher class: it’s a bit noisy and waiters sometimes talk to clients as they were friends and that might not be what we would expect from a 5stars and expensive place.

Valuation methodology benchmarks and result

We value Marcello’s goodwill with the market method. We have therefore investigated current market prices for coffee Bars and Restaurants in Rome in order to derive a benchmark to apply to Marcello’s taking into account all the peculiarities of the target.

We analysed a wide number of sale offers relating to Bar; and Restaurants; in Rome both issued on newspapers and offered by local agents with whom we discussed we consulted the official price list issued by trade agents and we also derived some price multiples from transactions recently completed.

The price range varies depending on the location. Taking into account only top tier locations we derived current market parameters based on: price per available seat price per square meter price to annual turnover vat excluded price to annual turnover vat excluded in top location price to Sales Price to Ebitda.

We then applied our sample multiples to Marcello’s data thus obtaining a valuation of Marcello’s goodwill of euro; 65 million.

In our valuation the ratio Price to available seats and the Price/Ebitda multiple result to be very high but we consider this as the additional value of being in a place known all over the world.

Our valuation is on a stand alone basis and considers the input data as they were given to us by the client. In a sale auction including the higher potential value that a buyer might place on this location the final price could clearly be different.

Nominal Price and PV

When discussing about the Value of a Coffee Bar or Restaurant we must keep in mind that the nominal Price of a transaction differs from the Actual Price because of the long terms of payments. It is common practise in this industry to pay cash a percentage of some 20 of the agreed Price and pay the 80 difference in monthly instalments up to 5 years. At a 750 WACC the current value is therefore 8654 of the nominal price. Applying this rate to Marcello’s we obtain: euro; 6.500.000 x 8654 = euro; 5.625.100

Mr. Rossi and the value of the People

We do not know if Mr. Franco Rossi and his staff would continue running Marcello’s should the place chance owner. Although he is an entrepreneur and a manager and he is not a celebrated chef we still consider that part of Marcello’s success relies upon the people that is running it today. We would therefore apply a rebate of 20 to our valuation should the people walk away.

The Value of the Marcello’s Trademark

Object of the Appraisal

We now come to the most challenging part of the job: what’s the value if any of a celebrated label such as Marcello’s? The object of the valuation is the economic content that a buyer may derive from the usage of the Marcello’s Trademark in the economic environment in which it operates and under the jurisdiction on the Italian patent law.

Testing the Value OUTSIDE the context in which the Marcello’s Trademark is currently used

There are three basic questions for an initial assessment of the value of the Marcello’s trademark:

1 The first question is: does the Marcello’s trademark or brand name differentiate the product or service with which it is associated? Is it unique enough to differentiate the product/service? When applying this question to Marcello’s we might want to discuss whether the Marcello’s trademark has a premium appeal on Rome’s clients compared to other coffee bar and restaurants. We would believe that Marcello’s has indeed a upper class positioning among coffee bar and restaurants in Rome but we cannot be sure that this is due to the Marcello’s trademark itself and not to its unique location to its sophisticated look and top class service.

2 The second question is: would others be interested in acquiring and using the Marcello’s trademark in a different context? Would the Marcello’s label allow the success to a second or third Marcello’s coffee shop located elsewhere in Rome or elsewhere outside Rome? We doubt this: we do not envisage the opening of a Marcello’s coffee shops chain simply based on the Marcello’s label. Besides this there may be coffee bars and restaurants with the same name elsewhere with no links to the Marcello’s restaurant located in Rome.

3 The third question is: would a third party pay Marcello’s in Rome to license or use the Marcello’s name either to duplicate its product or to extend its trademark into other products? We doubt this: Marcello’s is not a concept there are no particular values associated to the name and the trademark legal protection is weak: we do not see potential usage of this brand name in other products paying royalties to the Marcello’s company in Rome.

In conclusion there is no evidence of value of the Marcello’s Trademark outside the context in which the Marcello’s Trademark is currently used in Rome. So let’s focus on the business as it is.

Testing the Value INSIDE the context in which the Trademark is currently used

The valuation of a Trademark is most effected by the context in which it is valued and the value placed on a trademark derives from the additional benefit that it may bring to the buyer based on the potential synergies. Marcello’s has filed the trademark Marcello’s; to Rome’s Chamber of Commerce. This registration protects the company against the improper use of the Trademark relating to the coffee bar and restaurant activity in Rome. The filing allows a safer brand usage by the company but has no value outside Rome and in other product’s usage.

Basic considerations when applying the usual trademark valuation methods to the Marcello’s Trademark are:

1 The cost approach: the Marcello’s Trademark was clearly not created by the company and no apparent costs were incurred in adopting this label. The competitive advantages of the Marcello’s coffee bar are strongly related to its excellent location and we doubt that these would be maintained should Marcello’s move to a less interesting location in Rome. We therefore consider the replacement value of the label not relevant.

2 The income approach: Marcello’s price list is expensive but not more costly than other upper segment coffee bar and restaurant in Rome. Apparently the label is not premium price. We also doubt that the company may earn a significant stream of royalties when selling the usage of the Marcello’s label to other coffee bar or restaurant in Rome.

3 The market approach: we believe that in restaurants the value of the label is strongly dependent on the chef and the people running the restaurant rather than on the Marcello’s label. Should the chef and the people move elsewhere the additional value of the label may disappear leaving the only value of the location. We therefore see no relevant market value in the Marcello’s label without taking into consideration its people and its location.

4 The relationship approach: the issue is if the Marcello’s trademark allows a higher customer retention rate and a higher attraction rate compared to a new label. This aspect would need an indepth customer analysis. During our visit we derived the impression that Marcello’s customers are attracted by the location rather than by the label itself.

A final key issue related to the valuation of the Marcello’s trademark is the fact that Marcello’s is a pure label and not a brand asset concept. We may explain this aspect with two extreme comparisons: MacDonald and Harry’s Bar.

Mac Donald’s is not a naked trademark it is a corporate concept represented by a label. The concept includes precise procedures consistency of experience in quality and service worldwide strong Trademark legal protection location selection marketing approach. Mac Donald is not a label it is a concept. On the other end of the market we might mention Harry’s Bar by Arrigo Cipriani. Founded in Venice Harry’s Bar is not only known because of Hemingway or the Bellini’s cocktail which may be similar to hundreds of similar coffee shops and restaurants but because it developed a top class concept. The same customers attend Harry’s Bar in Venice in New York and elsewhere with an extremely strong customer’s loyalty and retention. It is a club that everybody would love to be part of.

Marcello’s is a great place as a coffee bar and a great location for a restaurant. However when applying best practise methodologies to assess the value of its label we end to the conclusion that the value of the coffee bar and restaurant mainly relies upon its location and its people and no relevant additional value is directly dependent on the naked Marcello’s trademark.

Conclusions

Marcello’s is a glamour place sophisticated all new high target very cool. We derived a standalone market value based on the value of its Naked administrative license and a Value of the Coffee Bar and Restaurant Goodwill while we doubt that Marcello’s Trademark may have an additional Value in a different context.

As restaurant business is a people business it is crucial to the valuation that the current manager and his staff should continue the activity or not and we have considered that a portion of Marcello’s goodwill will simply walk away together with the manager but this aspect should be further investigated in a real transaction.

nbsp;

Cesare Carbonchi President EqS Equity Studio in Milan Italy

nbsp;

About the author: Mr. Cesare Carbonchi is an international investment banker with large European and US experience in top tier institutions and with CEO experience in leading corporations. Cesare Carbonchi runs EqS Equity Studio in Milano Italy.

About EqS Equity Studio: EqS Equity Studio is an independent corporate finance boutique that provides financial advisory and transaction services to corporate clients relating to their business in Milano Italy. See website at www.eqsstudio.com

About the writer:  Mr. Cesare Carbonchi is an international investment banker with large European and US experience in top tier institutions and with CEO experience in leading corporations. Cesare Carbonchi runs EqS Equity Studio in Milano Italy. EqS Equity Studio is an independent corporate finance boutique that provides financial advisory and transaction services to corporate clients relating to their business in Milano Italy. See website at www.eqsstudio.com

Related posts:

1. Hard Money Commercial Loan
2. Have A Great Time With The Best Personal Shopper In
3. Learn About The Different The Italian Real Estate Source Features