New commercial landscaping technological processes and restructured Ess

New commercial landscaping technological processes and restructured as a Limited Liability Corporation. Joe's is being considered as a potential business investment, "Business Venture Capital". Buying an existing business can be an excellent way to become a business owner or to expand your present business. You can save time and effort of building a customer and supplier base. You may also avoid the trouble of locating equipment and hiring and training employees. However, you should abide by the Latin slogan which translates "Let the buyer beware." If you are not careful, acquiring an existing business can lead to disaster. (Poznak, 1998) Joe's Landscaping and Tree Trimming (Joe's) began as a small sole proprietorship. In efforts to expand and become a company that investors would be interested in, the company has ventured into new commercial landscaping technological processes and restructured as a Limited Liability Corporation. Joe's is being considered as a potential business investment, however, after reviewing the requirements of the legal due diligence process, it is my recommendation that an investment is not made into Joe's. In the third quarter of 2002, investors pumped $4.5 billion into 647 entrepreneurial companies, a decrease of 26% from the prior quarter, which saw $6 billion of funding to 838 startups. While IT startups consistently gain venture capitalists' attention, software companies continue to gather the largest amounts of cash despite a 10% drop in funding from the prior quarter. Representing 22% of total investment dollars, 180 software companies got funding, totaling $993 million. "Software is once again leading VC back to its roots, being the largest category in all of 2 but the last 10 years," says Tracy Lefteroff, global managing partner of the venture-capital practice at PricewaterhouseCoopers. He says that software companies are a safer bet for investors, as they have lower initial capital requirements and early milestones for achievements. (www.informationweek.com) While startups at all stages are struggling in this down market, the stakes are highest for new companies who want to gain first-time funding. Only 159 entrepreneurs received first-time funding in the third quarter, compared with 214 in the second quarter. Software startups took 30% of that money. Overall, the tightened i... ...ele. Since more revenue dollars are used for labor expenses, it is imperative that management maximizes the productivity they get out of their employees. (www.asbdc.com) It is imperative to mitigate major risks when considering investment opportunities. Potential liabilities are often over looked in the excitement of the investment opportunity. Liability claims from hazardous working conditions and potential environmental concerns makes Joe's a risky investment. More research needs to be done to ensure the company is utilizing environmentally safe products, tools, and is creating opportunities to produce safer materials and processes. References Arkansas Small Business Development Center. (2003, April). Retrieved June 23, 2004, from http://www.asbdc.ualr.edu/bizfacts/8002.asp Cuneo, E. C. (2002, October). More Venture Capitalists Keep Their Wallets Closed. Retrieved June 23, 2004, from http://www.informationweek.com/story/IWK20021028S0010?ls=TW_012803_fea&fb=20030128_software Poznak, J. L. (1998, August). Buying a business: Let the buyer beware. Retrieved June 23, 2004, from http://www.keepmedia.com/ShowItemDetails.do?itemID=203222&extID=10032&oliID=213 New commercial landscaping technological processes and restructured Ess New commercial landscaping technological processes and restructured as a Limited Liability Corporation. Joe's is being considered as a potential business investment, "Business Venture Capital". Buying an existing business can be an excellent way to become a business owner or to expand your present business. You can save time and effort of building a customer and supplier base. You may also avoid the trouble of locating equipment and hiring and training employees. However, you should abide by the Latin slogan which translates "Let the buyer beware." If you are not careful, acquiring an existing business can lead to disaster. (Poznak, 1998) Joe's Landscaping and Tree Trimming (Joe's) began as a small sole proprietorship. In efforts to expand and become a company that investors would be interested in, the company has ventured into new commercial landscaping technological processes and restructured as a Limited Liability Corporation. Joe's is being considered as a potential business investment, however, after reviewing the requirements of the legal due diligence process, it is my recommendation that an investment is not made into Joe's. In the third quarter of 2002, investors pumped $4.5 billion into 647 entrepreneurial companies, a decrease of 26% from the prior quarter, which saw $6 billion of funding to 838 startups. While IT startups consistently gain venture capitalists' attention, software companies continue to gather the largest amounts of cash despite a 10% drop in funding from the prior quarter. Representing 22% of total investment dollars, 180 software companies got funding, totaling $993 million. "Software is once again leading VC back to its roots, being the largest category in all of 2 but the last 10 years," says Tracy Lefteroff, global managing partner of the venture-capital practice at PricewaterhouseCoopers. He says that software companies are a safer bet for investors, as they have lower initial capital requirements and early milestones for achievements. (www.informationweek.com) While startups at all stages are struggling in this down market, the stakes are highest for new companies who want to gain first-time funding. Only 159 entrepreneurs received first-time funding in the third quarter, compared with 214 in the second quarter. Software startups took 30% of that money. Overall, the tightened i... ...ele. Since more revenue dollars are used for labor expenses, it is imperative that management maximizes the productivity they get out of their employees. (www.asbdc.com) It is imperative to mitigate major risks when considering investment opportunities. Potential liabilities are often over looked in the excitement of the investment opportunity. Liability claims from hazardous working conditions and potential environmental concerns makes Joe's a risky investment. More research needs to be done to ensure the company is utilizing environmentally safe products, tools, and is creating opportunities to produce safer materials and processes. References Arkansas Small Business Development Center. (2003, April). Retrieved June 23, 2004, from http://www.asbdc.ualr.edu/bizfacts/8002.asp Cuneo, E. C. (2002, October). More Venture Capitalists Keep Their Wallets Closed. Retrieved June 23, 2004, from http://www.informationweek.com/story/IWK20021028S0010?ls=TW_012803_fea&fb=20030128_software Poznak, J. L. (1998, August). Buying a business: Let the buyer beware. Retrieved June 23, 2004, from http://www.keepmedia.com/ShowItemDetails.do?itemID=203222&extID=10032&oliID=213