The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
February 15, 2000
In this week's report. . .
NATE Convention Slated For March 2 - 4 At The Monte Carlo In Las Vegas
The National Association of Trade Exchanges is expecting an overflow attendance at this year's annual convention in Las Vegas. Over the years that city has proven to be the biggest draw for their attendees.
This year the organization is providing companies attending with a FREE video of the various business sessions. The offer is the first-ever within the commercial barter industry.
Other noteworthy events will include the "roasting" of outgoing NATE Executive Director Tom McDowell (one of the founders) and the introduction of his replacement, Alan Zimmelman.
The beautiful Monte Carlo hotel and casino will be the site of the convention. For further details contact Alan Zimmelman at (760) 944-7399, or fax (760) 944-7998.
New Tax Law Guarantees More Barter (Stock Transactions)
Contrary to what's reported in the business press, most corporate mergers (numerically speaking) in the U.S. are quite small...involving deals valued between $500,000 and $2 million.
Under a new tax law, as of December 17, some business owners will be paying taxes on money they may not have received. In short, the new law requires that taxes on the proceeds from the sale of a business must be paid all at once, even if the funds are to be received in installments over several years.
It's estimated 260,000 businesses a year will be affected, as most firms with less than $50 million in annual revenues rely on an installment arrangement.
The obvious way to avoid the new law is to arrange a stock sale, rather than making an asset sale. The trading of one's stock for another company's equity is now used in 59 percent of the mergers and acquisitions taking place annually in the U.S.
Although many believe that Congress didn't realize the tax rule would so broadly affect small business, it is expected to be a good revenue generator, bringing in approximately $1.9 billion over five years.
A coalition of 42 groups, including the National Federation of Independent Business and the U.S. Chamber of Commerce, recently wrote Treasury Secretary Lawrence Summers urging him to support efforts to repeal the "onerous" provision. Similar letters were sent to the Senate Finance Committee and House Ways and Means Committee.
If lobbyists don't succeed in reversing the rule, Wall Street may create an alternative, a securitized note, enabling the seller to receive all cash up-front to cover taxes, while the buyer would pay some of the purchase price in cash installments. These payments would be received by the buyers of the securitized paper.
Beverly Hills Talent Agency Makes Barter Deal With Broadband
Top talent firm Endeavor Agency, home of "Titanic" director James Cameron and "Ally McBeal" creator David E. Kelley, announced an exclusive agreement to create internet-only programming with the Orange County (CA) new-media company Broadband Interactive Group.
Broadband Interactive Group, BIG for short, is backed by Henry Samueli and Henry T. Nicholas III, founders of computer chip maker Broadcom Corp. BIG already merges television with the internet, creating programs and webcasts on extreme sports that target young viewers.
The two companies will form an editorial board to oversee the venture, seeking help from some of Hollywood's creative heavyweights for a medium that could transform traditional filmmaking.
In exchange for access to its talent base, Endeavor will get an undisclosed amount of equity in the technology company.
Four Simple Steps Toward Developing Successful Reciprocal Purchases
When vendors call on your company intent on making a sale...bringing you in as a new client/customer...you have the perfect opportunity to form a trading relationship, wherein you will use yor products or services as a form of payment.
To maximize your efforts toward this end here are the suggested steps to follow:
But remember, don't give up after one or a few attempts...realize that success is assured by persevering. As hockey sensation and hall-of-famer Wayne Gretzky said, "You miss 100% of the shots you never take!"
So take your shots, ask every vendor to participate with you in the barter arena. For hundreds of techniques and barter strategies like this, you will want to look into acquiring the only barter course of its kind, the BarterNews FastStart Program...see our "Home Page" for further details.
Here & There. . .
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