October 4, 2011
by Bob Meyer, Editor of BarterNews
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From the desk of Bob Meyer...
Bartering New Again, Reports Craigslist
The use of Craigslist�s for possible barter deals is
reportedly soaring, as it�s the latest trend due to the
prolonged economic downturn. BarterQuest says it has seen a
150-percent increase in users since the recession.
NATE Eyes 2012 Convention Venue
The NATE (National Association of Trade Exchanges) board of
directors is looking for a location to stage next year�s
annual convention. To stay abreast of what the association
for independent trade exchanges is doing
Zuckerman Concerned About America�s Future
Mort Zuckerman, Editor of U.S. News & World Report,
says last month was the first time in 66-years the U.S. had
no jobs created. That situation, along with a real
unemployment of 19%, is unprecedented and cannot be allowed
to continue, he contends. According to Zuckerman the way out
of the malaise is for the U.S. educational system to undergo
a massive, concentrated effort to educate our young in math
It�s That Time Of The Year Again
Trade exchanges everywhere are gearing up for the coming
holiday season with their holiday barter expo�s. Experienced
traders know the value of attending these events to view
hundreds of products and services on display for purchase on
a full trade basis.
Major Story In
York Times On Greeks Turning To
The Sunday (October 2, 2011) issue of the New York Times
reported in their �International Section� about the growing
interest in barter networks in Greece. The title of the
article: �Battered by Economic Crisis, Greeks Turn To Barter
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IRTA�s Convention A Hit
IRTA�s 2011 International Convention at the Aventura Spa Palace
Resort in Riviera Maya, Mexico, surpassed everyone's expectations.
The first-class all-inclusive resort, according to IRTA president
Michael Mercier, was the finest property ever to host an
International Reciprocal Trade Association convention.
Over 50 barter exchanges and 115 people attended the two-day
convention, which included of engaging speakers and informative
seminars. �We hit it out of the park with this convention,� enthused
IRTA Executive Director Ron Whitney, �the challenge going forward
will be to maintain the new standard set at the Aventura Resort.
Some of the finest barter companies in the world came together with
the unified goal of improving their trade exchanges, while also
elevating the barter industry as a whole.�
the convention, the IRTA membership adopted a modernized Ethics
Code. This new Code contains important guidelines for barter
exchange conduct on the relevant issues facing the barter industry
today. It was the result of the hard work of the Ethics Code
Revision Committee which consisted of IRTA President Mike Mercier
(Metro Trading), IRTA Treasurer Mary Ellen Rosinski (Tradesource),
IRTA Secretary Annette Riggs (Community Connect Trade), Harold Rice
(American Exchange Network), and IRTA Executive Director Ron
�The new IRTA Ethics Code is a huge step forward in setting
meaningful standards in the barter industry. The Code is a clear
indicator that membership in IRTA represents the highest level of
professional conduct and ethical standards available in the
industry,� said Mary Ellen Rosinski, IRTA Treasurer and Global Board
more info on IRTA and to view their Ethics Code
Is Your Trade Exchange Missing Out On
Valuable New Business?
your barter company�s listing on BarterNews.com isn�t current, you
are definitely missing out on new business. The web site
BarterNews.com receives heavy traffic � with over 150,000 page-views
every month. Entrepreneurs and corporate executives check the
thousands of articles, the weekly �Tuesday
Report,� and the �Contacts
Section� of our site. They use the latter to find barter
companies with which to do business.
your barter company�s listing up-to-date?
keep your listing current is very easy. See the links below to (A)
update any changes to your company�s listing, such as new location,
phone number, web site or other information, and (B) if your company
has not been listed.
Here�s how to get on board:
make changes to your listing
In Today�s Economy What
Better � Cash Or Non-Cash?
we slog through an economic atmosphere that feels more recessionary
than recovery in nature, the debate over the economic impact of
non-cash has a new context.
According to the most recent Performance Perspective executive
briefing released by Madison Performance Group (MPG), non-cash
rewards, in the right circumstances and in the right combinations,
can actually be more effective and therefore more efficient than
is the worldwide leader in developing employee engagement and
incentive marketing programs for Fortune 1000 corporations that
include Citigroup, Kawasaki and Siemens. The company implements
customized strategies to motivate workers, applying proprietary
sales and marketing techniques to maximize employees� success.
highlighted in the perspective, non-cash awards � merchandise,
travel, gift certificates and gift cards, a simple thank you
(anything that�s processed/delivered outside of the payroll
practice) � are better investments and thus more affordable
solutions for companies looking to �do more with less.�
�cash is king� bias, long held by many business leaders and the
reason some organizations still have closed minds when it comes to
the potential impact non-cash cash awards, could be playing within
their organizations. MPG senior vice president Mike Ryan, says,
�Cash should always be front and center in the compensation mix. But
is the promise of money really what motivates us to do our best when
we do our work? And, perhaps more importantly, does cash alone
represent what we really want to get out of the job?�
Non-cash motivators, including praise from immediate managers, can
be more effective than the three highest-rated financial incentives:
cash bonuses, increased base pay, and stock options. Additionally,
non-monetary compensation can maximize effectiveness in aligning the
goals of the organization with the emotional priorities of its
can be argued that people are indeed a source of unique advantage �
one that is hard to replicate, and companies need to take care of
today�s skilled workers by aligning reward strategies with what
people really want: rewarding work, meaningful relationships,
acknowledgment, freedom, and flexibility.
Even in these recessionary times, employees think more frequently
about material awards than they do their cash equivalents. Employees
think more frequently about tangible awards � even when they are on
an equal value to cash � and that the increased interest may lead to
higher performance and greater returns on the aggregate compensation
investment. Non-cash enticements can be used to close performance
gaps across a wide variety of enterprise-level metrics, or they can
be used to encourage improved outcomes at the local level.
an uncertain economic forecast continues to place cost demands on
companies, it�s time to reexamine the old paradigm that cash is the
most reliable motivator,� Ryan concludes. �With new studies showing
that non-cash, in the right circumstances and in the right
combinations, can be �more effective and efficient� than money
alone, companies looking to maximize the impact of their
compensation costs would be wise to blend non-cash elements into the
How To Position Your
Company for Maximum Exit Value
What color of car would you rather buy? Based on your personal
preference, the answer to this question will affect how much you are
willing to pay for a vehicle that is identical in all aspects other
than color. What has this got to do with the market value of your
business you might ask? Well, simply put, traditional valuation
techniques generally ignore one important factor in their
calculation, the buyer.
example, assuming a dealer has two used cars that are the same make,
model, year, etc., but one is blue and the other is silver. They
will almost certainly be priced exactly the same. However, if your
preference is for a blue car, you would no doubt buy the blue car.
In fact, the dealer would have to discount the silver car for you to
consider that as an option. Therefore, your preference has
effectively determined a higher value for the blue car over the
silver one, despite market-value suggesting that they are both worth
how do you apply this logic to the value of your business? If you�re
thinking about selling your business sometime in the future, you
probably have no idea who will buy it and what their preferences
are, so what can you do now to position your company to maximize
value from an exit, and where do you start?
terms of business acquisitions, there are generally two main buyer
groups, each with very different views of what is important to them.
These groups consist of either financial buyers and strategic
buyers. Financial buyers generally are individuals or groups of
individuals looking to invest in a business, whereas a strategic
buyer is usually a company looking to add to its existing
an example, let�s assume that after some initial research you
determine that the most logical and likely buyer type is a strategic
one. You then determine, based on other acquisitions in your
industry, that the primary focus of most buyers is the quality of
the customer base being acquired, rather than say the management
team, who will most likely be surplus to requirements after the
Therefore, if the last five years have been channeled into
increasing and maintaining quality customers over the same time
frame, the buyer would most likely pay a higher price for the
business. This example highlights the impact of focusing attention
on the right aspects, which we call value drivers, of the business
to make it the most attractive to likely buyers when it comes time
to sell in the future.
Value drivers can include, among other things:
While you can control and manage most of the value drivers of your
business, other aspects specific to a buyer will also determine the
potential value that they can justify paying, including:
impact of these factors is not possible to plan for, but is buyer
specific and will result in different values being placed on exactly
the same business by different buyers. They should be considered
when negotiating an actual sale with actual buyers. In order to
position your business to maximize value when the time is right, go
through the following exercises:
a market analysis of who is buying similar businesses to determine
the most likely buyer-type for your business.
recent transactions to determine what values are being achieved.
possible, contact typical buyers anonymously to understand the value
drivers they�re primarily looking for in an acquisition target.
the level and source of debt that could reasonably be secured to
finance an acquisition of your business, so you can estimate the
likely ratio of debt and equity.
strategic planning session for your business, ensuring the long term
goals of the company are focused on growing the right value drivers
based on your analysis above.
performance indicators in order to track specific value drivers on a
monthly basis � include this as part of your monthly financial
package to ensure efforts are maintained over time.
process on an annual basis to ensure any changes in buyer types and
value drivers are known and addressed in a timely manner.
Gaining a better understanding of how different buyers might view
the value of your business can benefit you, if you�re looking to
sell and help you build a more valuable company.
Chris Blees is the
President and CEO of BiggsKofford Certified Public Accountants and
BiggsKofford Capital Investment Bank. He sits on the Board of
Advisors for the Alliance of Merger & Acquisition Advisors, chairing
the Certification Committee. He is co-author of
Middle Market M&A:
Handbook for Investment Banking and Business Consulting,
scheduled to be released February 2012.
Money-Making Reports Available From BarterNews
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Our street-smart restaurant
marketing report shows proven ways to rapidly boost your
restaurant�s sales & profits.
The Growth and Use of Secondary
Capital (New Money) Creates Unprecedented Wealth In Today�s New Age
There are many forms of secondary
capital�which can be defined as any financial instrument that
measures and communicates value in a common language. Would you like
to see and learn more about the many forms of secondary capital?
We have 70 free, informative and
inspiring, articles for you in our �Secondary Capital Section.�
Check it out...
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