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  • Money Is Actually Important

    Money Is Actually Important

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    “If you think that money is not important, you don’t have any”

    After hearing the panelist make this comment, I immediately looked around the room to see who he just offended. Although I agree with him, I was surprised to hear him make such a strong comment in such a public forum. The truth is, this type of belief makes people without money, and no plans to get it, feel better. I have heard this a thousand times from family and friends when the topic of money comes up.

    I remember growing up and watching the movie “Can’t Buy Me Love” in school. The basic idea of the movie is that an unpopular male high schooler is desperate for approval and pays the lead cheerleader to date him for a month; or to at least make it look as though they are dating. This way he will become popular, which was a guarantee of his happiness. The result was that she starts to fall for him and he does in fact become popular. The popularity however, does not make him happy. In fact, the lesson was that money cannot buy you happiness. He was much happier with his original relationships than he was with the new ones from the “cool crowd”. I was in elementary school when this movie was shown to my class and I still remember it.

    I have always believed that money cannot buy happiness and that I could honestly be fulfilled without it, but I still wanted it and I still pursued it. I focused a huge part of my life to attain it and now, after all the years of hard work and struggle, I am glad I did. I live a very happy and fulfilled life, and money enhances it.

    I relate money to alcohol. Alcohol, when consumed responsibly, can enhance an experience. It can make challenging situations easier and it can bond people together. It can also ruin your life! A difference of course, is that alcohol is much easier to get, but outside of that, there are a lot of similarities. They both are enhancers and they both can be addictive. They both can ease stress, but they both can create stress too. I know rich people that are miserable, and I know rich people that are happy. The money does not create one or the other.

    There was a time as I was trying to create wealth that I lost almost everything financially. I went through an extremely challenging time in my business and my personal financial life. I stopped answering the phone because I knew it was debt collectors on the other end. I learned a great deal with this experience. One thing I know for sure is that I never want to be broke again. Although I believe having money is not a guarantee to happiness, not having money is a guarantee of at least some stress and pain. It is possible to be happy without money, but it is a hell of a lot easier with it. Money is important.

    From my experience, the only sure-fire way to happiness is through solid relationships. These days I spend a lot more energy strengthening relationships with friends and family that make me happy. I also focus on limiting time and energy into relationships that drain me or do not make me happy. This is tough to do, but the results are positive. Over the years in business, my circle of friends has shifted to more supportive and positive people. This happened organically, but now that I am aware of it, I can focus on it. The real estate industry has been good to me in many ways, but the most important is the people that I have met and that I now spend time with. Some of the most generous, supportive, and amazing people in the world are real estate investors. It is helpful to have a little extra cash to have amazing experiences with people I want to be around.

    It is true money alone will not make you happy, but it sure helps. Money is important.

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    Source by Kevin Amolsch

    Views: 1

  • Sex Toys: Good or Evil? (2)

    Sex Toys: Good or Evil? (2)

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    Consequences

    There are dire consequences for using sex toys. First, it will attract legions of sex demons (incumbi and succumbi) spirits to you. Second, it will make you permanently spiritually unfit and cause leakages of spiritual powers, gifts, confidence and abilities. Third, it is immoral and thus, a sin against God. Four, it will attract curses from God and from demonic spirits. Five, the curses may turn generational. Six, it can lead to psychological and mental hang-ups that can make you hate or withdraw from the opposite sex, and thereby not fulfilling the original plans of God to have a healthy sexual relationship and union.

    Incumbus and Succumbus (sex demons)

    You cannot use or keep sex toys, objects, dolls, pornographic materials or masturbate without opening doors for very sex hungry marauding demon spirits. There are satanic spirits that specialize in attacking humans through sex. Like the bible has given us a little window into the dark world, these demons like their fellows go to and fro, day and night searching for victims. In fact, Jesus said they roam about looking for where to enter and occupy. True. And worse, they are in millions and that was why Jesus could cast out thousands of them from just one person! And seven terrible ones from the woman prostitute – Mary Magdalene:

    “Not long afterwards Jesus began a tour of the nearby cities and villages to announce the Good news concerning the kingdom of God. He took his twelve disciples with him, along with some women he had healed and from whom he had cast out evil spirits. Among them were Mary Magdalene, from whom he had cast out seven demons. Joanna, the wife of Chuza, Herod’s business manager, Susanna, and many others.

    – Luke 8:1-3.

    All prostitutes, immoral sinners including sex toy users and other ‘masturbators’ are possessed with sex demonic spirits. You may not know all they battle with until they open up. They struggle with many seen and unseen things and beings – physically and spiritually; even in their dreams. Mary Magdalene; a prostitute and other women were having these issues until they came to Jesus who cast out those spirits upon their repentance. And they became free. Look at Mary, after that encounter with Jesus her real person, gift, love for God came out. She immediately became one of the most trusted followers of the Lord Jesus. She ministered to Jesus, stood by Him at the Cross, watched His burial, came early to observe his sepulchre and also was privileged to see the risen Lord. Wow!.You real personality, your love for God will only come out when you throw away or burn those instrument of immorality called sex dolls, toys and vibrators. True. Burn those toys now! We will continue next. God bless!

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    Source by Gabriel Agbo

    Views: 0

  • Healthy Living – Should You Try A Technology Detox?

    Healthy Living – Should You Try A Technology Detox?

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    We have all heard about detox plans. Many of you may have tried one in the past, hoping it would help you reach your health and fitness goals. The primary purpose of the detox approach is to detoxify your body from the toxic waste we encounter on a day-to-day basis, which should then enable your body to work better and more efficiently.

    In most cases, a detox approach is strictly revolving around food. You eat a particular type of food, and that gives you the detoxification benefits you want to see.

    But what about other types of detox plans? As it turns out, one detox plan you might consider using is a technology detox. With so many of us becoming so connected every day, these can do us a world of good. So what is behind a technology detox? Here are the main points…

    What A Technology Detox Is. A technology detox is, as the name suggests, a break from all things technology. If you are like most people, you are acutely aware you are spending a lot of time on your SmartPhone. Or, perhaps you are hooked to the TV.

    Whatever the case, a technology detox is a chance…

    • to stop watching TV,
    • to stop looking at your smartphone, and
    • to even stop going on the computer apart from the essential things you need to do for your career.

    A technology detox allows you to take a step back and live life how it was before all these “toys” came along.

    Benefits Of A Technology Detox. So what are the benefits you will receive from doing this?

    • first, you will find you are less stressed out. You would be amazed at how much stress you get from being so “busy” with your technology. When you do not have it to distract you, you have more time to sit and think – and work through anything that may be bothering you.
    • a second significant benefit is time. Without your smartphone or TV to distract you, what will you do with all the open time? You may find you now have hours in the day you can devote to other, more productive things.
    • finally, you may also notice weight loss! That is right. Without TV and your smartphone to take up your time, you may become more active. This could prompt better health as well. Not to mention, most people will find they experience fewer headaches.

    How To Get Started Today. To get started, decide on two days this week you will unplug. Remember you can use a computer for work-related tasks, but for nothing else. You want to follow through on this to reap the full benefits.

    • try that for just two days.
    • then the following week, aim for three days.
    • take a few weeks off, then aim for four days.

    Eventually, you can design for a full week away from all technology once each month. See what a difference this makes in your life!

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    Source by Beverleigh H Piepers

    Views: 0

  • What Your Doctor Knows About Varicose Vein Surgery Cost – And You Should, Too

    What Your Doctor Knows About Varicose Vein Surgery Cost – And You Should, Too

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    If you know someone who deals with frequent doctor's, you're probably taken back by the number of medical procedures you've never heard of before. Particular medical procedures you might not be familiar with are those that pertain to varicose veins, and while that's not necessarily news, what you might want a little light shown on is varicose vein surgery cost.

    The one thing that is no secret is the cost of healthcare in this country. The cost of trying to be a healthy person nowadays is astoundingly high, which can often make people shy away from seeing a doctor. When it comes to varicose veins, the last thing most people will do is see their doctor about getting rid of them because it seems like an expense that's not worth making. After all, getting rid of them is often a cosmetic procedure, and dropping serious money on what essentially feels like a vanity project seems frivolous.

    Herein, however, lies the problem. Too many people are making a medical decision based on its cost-effectiveness. While this is a much bigger problem in terms of healthcare (way too big for the purposes of this article), it comes down to patients not taking the time to consult their physicians, which can be dangerous. It's time to be proactive patients and act as savvy consumers. Cost is often looked at as a taboo subject, but you deserve to know everything you can to make an informed decision. When it comes to your varicose veins, you need your doctor to be upfront about the cost of surgery to treat them.

    Here are some things you may learn from your physician about varicose vein surgery cost:

    Surgery Costs More Money Than Other Treatments – Because of the invasive nature of surgery, it costs more. It can also lead to longer periods of recovery and may not have the outpatient recovery other treatments do.

    There Is More Than One Treatment Possibility – Surgery is one of the last treatments noted in dealing with varicose veins. Be sure to ask your doctor about these possibilities first.

    Insurance May Not Pay – Varicose vein treatments tend to be seen as cosmetic, therefore they're labeled as elective procedures, which most insurance plans don't cover. You need to know this before any treatments.

    Less Invasive Can Be Best – Many of the treatments can be done in the office and have relatively low recovery periods. This is becoming quite the norm for most medical procedures and might be the best course of action for your varicose veins.

    Alternative Medicine – Though a little on the edge, ask you doctor about any alternative medicine options. While most medical professionals may scoff at alternative medicine (herbal and dietary supplements), others may be enlightened enough to note some possibilities, though they'll be quick to note that there isn't much information out there to consider them viable options.

    Varicose vein surgery cost can keep individuals from going through with the procedure just because they don't know how to pay for it. If there are issues with their insurance or simply with income, paying for surgery is almost impossible. Discuss these issues with your doctor and have honest conversations about all facets of your varicose vein treatment. The last thing you want to do is leave your health mired in misinformation & matters of billing.

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    Source by Morris Raymond

    Views: 0

  • Family Medicine And Family Physicians

    Family Medicine And Family Physicians

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    To become a family physician, men and women go through a four-year degree program, they study in an accredited family medical medicine residency program, and an additional three years of training before becoming board certified. A family physician is your one-stop healthcare expert. They treat everyone in the family and they exam, research, and diagnose medical conditions from head to toe. This type of care is called integrated care where a family doctor devises individualized health plans to treat mom, dad, and children of all ages. Family doctors treat a wide range of health conditions and they can be your primary care physicians at any point in your life. Unlike other specialties, family medicine involves coordinating all types of healthcare issues, from a common cold, pregnancies, to treating an acute or chronic illness.

    Family physicians must practice at the highest level of medical care throughout the world. They are required to become re-certified around every six years, through American institutions like The American Board of Family Medicine, The American Academy of Family Physicians or the Accreditation Council for Graduate Medical Education, all of which have reciprocity agreements throughout the globe for family medicine training. A few of the advantages in being seen by a primary care physician, includes the following:

    • family doctors have all of your personal and family medical history because they have been treating you for years.

    • physicians that have seen generations of family members can help in researching various genetic diseases, like cancer, if it appears more than once in a generation.

    • doctors involved in family medicine environments can perform minor surgical procedures without the added cost of seeing a specialist.

    • they improve the lives of the underserved in America and abroad.

    Research and clinical studies have proven that US and worldwide primary care physicians have been responsible for lowering the world mortality rates in diseases, such as in cardiovascular diseases, cancer, diabetes, low birth weight issues, obesity, and many other illnesses and health conditions. The statistical results associated with the care provided by family physicians, have proven that they help to increase life spans and control diseases from spreading. Their participation in healthcare has reduced healthcare expenditures, they help to lower hospital admissions, emergency room admissions, and they help to reduce surgical costs.

    A family doctor focuses on preventive care, community oriented care, global health, plus they diagnose and manage a wide range of health problems to improve the quality of care in local, rural, urban, and large city health. Even if people are generally healthy, patients benefit by keeping a relationship with their primary care physicians. The physicians support individuals to stay healthy through dietary programs, they encourage their patient's to exercise to stay physically and mentally healthy.

    One of the main reasons that family medicine works, is the relationship that patients have with their doctors. This specialized and confidential relationship is great for individuals who feel comfortable in talking about their medical health with their physicians. Physicians around the world, are available to answer their patient's questions in a way that forms a trusting bond. This bond creates a trusting relationship, whereby patients will listen and follow their healthcare provider's advice and directions, thus decreasing chances of spreading contagions .

    Family medicine is all about treating the whole person, not just their symptoms. A family physician has a profound effect on the physical, mental, environmental, emotional, and spiritual health of each of their patient's. Physicians with an intimate knowledge of their patients can help introduce the healing power of hope, love, faith, and trust, as life presents challenges that can evoke depression, fear, grief, and anger. Also, if a physician's patient requires the need to see a specialist, a family doctor will help coordinate your care. Patients can often feel frustrated and confused when they have to manage the healthcare system on their own. With a family healthcare provider on your side, the whole medical care journey is made easier and less frightening of the unknown.

    Refugees have always fled to foreign countries, including the US for a chance of better opportunities for themselves and their family. The present global news events are following refugees today, who are fleeing from their native countries for various reasons. Before being accepted for resettlement, all refugees must pass medical screening examinations, which is often performed by primary care physicians. The physicians perform a thorough examination of a variety of health problems that involve the mental and social health of the refugees. The family doctor's check for infectious diseases, chronic illnesses, the refugee's overall musculoskeletal system, and parasites, thus providing immunizations. The information that they gather is shared with that country main health agency, which in the US Is the Centers for Disease Control and Prevention.

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    Source by Ryan A Buffington

    Views: 0

  • Different Types of Drug Rehab

    Different Types of Drug Rehab

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    Drug rehab is a broad topic as there are many forms of drug rehab. Which type would suit a person with an addition would depend on the level of dependence, the type of drug addicted to, and their social situation. Some of the drug rehab centers offer medicine that will help to relieve the withdrawal symptoms, methods to address the underlying reason of additions, and intensive counseling. Many drug rehab centers offer out-patient and in-patient treatment.

    Generally, every form of rehab starts in a medical locale. This is so professional health care staff can monitor the patient during chemical detoxification. This is when the drug leaves their system chemically and the patient no longer is dependent physically on the drug. Under the health care professional supervision, the patient's side-effects can be eased with medication, sleep, and proper nutrition. This is an interventionary stage and it is seldom enough to allow them to recover completely from their drug addiction because there is no psychological component.

    In-patient treatment

    This kind of rehab provides supervision on a full time basis in an environment that is tightly controlled. The patient can live in a community outreach center, psychiatric cent, or a facility that is connected with a hospital. The drug rehab center provides support with housing and meal plans. This form of drug rehab will usually involve an interventionary program. This can be as few as thirty days along with the belief that the patient will continue treatment as an out-patient.

    Out-patient treatment

    This type of rehab relies on addicts voluntarily attending treatment as an out-patient. This means that the patients will work and live independently, attend meeting, classes, or counseling sessions that are designed to give them new coping mechanisms to manage stress so they do not return to drugs. It includes a 12-step program like what is used with Alcoholics Anonymous and has a strong spiritual center. This form of drug rehab can be casual or during group therapy with a counselor trained in drug addictions in a out-patient setting.

    Underlying causes

    Some drug rehab centers try to address the underlying causes of repeated relapse and addition.

    • Estrangement from friends and family
    • Not having a support system
    • Little to no employment skills
    • Living in an area that is united entirely by those that use drugs
    • Mental illness

    Holistic approach to drug rehab

    With this approach there are community centers and half-way houses where they can receive practical advice, acquire job skills, and sufficient time to remove themselves completely from old acquaintances that are still into drugs. Many times, they will allow them to stay six to twelve months. When they leave they are confident they can manage on their own without going back to drugs.

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    Source by Lora Davis

    Views: 1

  • Importance of Evidence-Based Complementary Medicine

    Importance of Evidence-Based Complementary Medicine

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    The modern-day world has many challenges and thus good health is one of the greatest blessings in today’s era. For example, a rich man with a bad health will always be unsatisfied and unhappy! “Health is Wealth”. Improving your health is an opportunity that shouldn’t be missed. It is a fact that your health affects all the aspects of your life, be it professional, or personal. Probably that is the reason why evidence-based complementary and alternative medicine came into existence!

    With increasing number of health-related apps and journals on the internet, you can now easily move towards a healthier lifestyle. Even the experts of medicine have admitted that the advice and products of work best when supplemented with a doctor’s standard care and supervision.

    As the famous proverb suggests, “Prevention is better than cure” and evidence-based complementary and alternative medicine helps you achieve this goal. So, here are a few benefits that you might get if you follow an integrative healthcare protocol:

    • It helps you in receiving specific treatment plans as per your physical requirements. As each individual has a unique body, it is not advisable to subscribe to a generalized treatment protocol. An effective biotyping assessment studies your inherited traits such as body frame, personality type, digestive capacity, metabolic activity, nutrigenomics, as well as environmental factors. In this way, it provides you with a personalized holistic Integrative healthcare medicine advice.
    • It aims at examining and treating all the aspects of physical as well as emotional components. It is proven that daily stress negatively affects your emotions, biology and genetics. All this further results in greater risks of several chronic diseases such as cancer and heart disease!
    • It offers a wide range of Natural Cure and Remedies so that you are not completely dependent on pharmaceuticals, many of which have side-effects. The food that you eat is one of the biggest reasons behind your healthy (or unhealthy) life! Following unhealthy food habits can result in an increase in the risk of heart conditions, high blood sugar, obesity, etc. So, what could be better than utilizing food as a medicine?
    • It focuses on the prevention of diseases before it even occurs. While conventional medicines are prescribed for a lifetime for chronic disease, alternative medicine examines the root causes of the disease. It also encourages the patients to focus on preventing a disease by eating healthy foods, exercise, meditation, etc.

    So, if you also wish to treat or prevent any disease with Natural Cure and Remedies, evidence-based complementary medicine is the key! After all, it’s never too late for improving your health.

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    Source by Luke Harper

    Views: 0

  • Am I Ordained To Marry?

    Am I Ordained To Marry?

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    One common question people ask us during counseling is whether they are ordained to marry or not. Few weeks ago, a sister walked up to me to ask if she was ordained to marry or not. I asked why she thought so. She said, her pastor taught them that it is written in Matthew 19:12 that some people were made to be eunuchs and therefore, not everyone is expected to marry. And now she was worried because of the series of disappointments she had experienced in her relationships. When I asked her whether they were equally taught how to differentiate between both groups she said that was why she came to ask me. I said she should have gone to her pastor to ask but she said she would not because they were more interested in how many souls they had won to Christ than their marital plans.

    Her vehement refusal to go to her pastor for counsel was a clear indication that she had gone through some elements of frustration. I don’t know how many people are in the same situation today. All I know is that someone will be free from this bondage today.

    Before I address the core issue, let me tell you that Christianity is a balanced relationship. The same God that says he that wins a soul is wise also says marriage should be honored by all, and the marriage bed kept pure, for God will judge the adulterer and all the sexually immoral, (Hebrew 13:4 NIV). The practice of holding back mature adults in church from marriage because you don’t want to lose them to other churches or distract them from actively engaging in church growth is unbalanced and unhealthy for the growth you desire. Marriage is an honor before God. It brings glory to God. Anyone that desires to marry should be encouraged before they begin to defy themselves right under your pulpit.

    My counsel is that while encouraging them to continue winning souls they should also be counseled on the right way to find the right kind of spouse and the right way to marry. Teach them to let their marriage become a plus to the church instead of minus. If you alone could chase one thousand souls, let you and your spouse join in marriage to chase after ten thousand souls.

    Matthew 19:12 says: ” For there are some eunuchs, who were so born from their mother’s womb: and there are some eunuchs, who were made eunuchs of men; and there are eunuchs, who have made themselves eunuchs for the kingdom of heaven’s sake. He that is able to receive it let him receive it.”

    The above scripture clearly defines the three categories of eunuchs. Our point of emphasis here shall be on those born eunuchs from their mothers’ womb. The other two are those forced into it and those that became so by their choice.

    When God created man in His image and likeness, He decreed that he should go into the world and multiply. That declaration is for you and me. The only approved way to achieve this multiplication is to marry legally and keep the matrimonial bed holy. You don’t need an angel to whisper into your ears that it is time to marry. The rules are there in the bible. That is not our focus for today anyway.

    Take example from Abraham, the father of faith. He didn’t need any prophecy to discern whether his son Isaac, needed a wife or not. All he needed was simple wisdom drawn from the Word of God. God told him during his call that through him the earth shall be populated with His new generation of children. He settled it in his mind to get a wife for Isaac to make that calling and purpose come to fruition. At the appointed time, he sent his servant, Eleazar to go to his kindred to get a wife for Isaac. You know the rest of the story in Genesis chapter twenty-four.

    God designed man with all the features required to perform all that He wants him to do on earth in the same way a manufacturer will not put his products in the market place without the inbuilt features to function. Signs of puberty, sexual emotions and strong attraction towards the opposite sex are some indicators that you are ordained to marry. When His due season is near, He begins to impress His desires in your spirit for onward transmission to these dormant sexual potentials in you and suddenly you will awaken to certain pressure in that direction. The bible says, ” it is God who works in us both to will and to do of his good pleasure”, Philippians 2:13. Marriage is one of the good things that bring pleasure to God. When you start feeling the urge or willingness to get married just know God has begun this good work in you. Anybody that has this urge or desire to marry is one of those God has ordained to marry. Period!

    To become a eunuch or to marry is your choice. God has given you the free will to decide it. He will not choose or impose any one on you. Apostle Paul chose not to marry because he wanted to use his life to serve God and not because God said he should not. His case should not become a doctrine to dissuade people from fulfilling God’s purpose for their lives. He even admonished anyone that is unable to bear it to marry instead of burning in lust. If you choose to live a life of celibacy or choose to marry as you have desired, God is pleased with you. Do not allow previous disappointments dissuade you or make you start thinking that it might be that you are among the chosen eunuchs. You are ordained! If things are not working well, find out what you have not been doing right, keep correcting and working on yourself so God can connect you with the right kind of spouse.

    However, it does not mean you should rush into anyone because God has willed it so for you. There is period to find the right kind of spouse and there is time for preparation. My stake here is to let you know that these signs put you in the category God has ordained to marry. You do belong to the group of those made eunuchs from their mother’s womb.

    Parents should watch out for these signs in their children and wards. When these signs begin to show up, it is a signal to parents to start preparing their children or wards for the next phase of their lives. Unfortunately, many parents and guardians around these children do not always prepare them on time, and sometimes they misdirect them through wrong information. We owe the upcoming generation this responsibility as guardians. Those who fail at this level of parenting always regret it because late stitches steal real good time.

    Those made eunuchs from their mother’s womb do not have and will never have the urge to get married because they do not have the features in them. I do not mean those incapacitated by sickness, diseases and infirmities like down syndromes, depression or paralysis. These are healthy and virile folks who are repugnant to the site of the opposite sex. They never have any amorous feelings towards the opposite sex even when they are both nude in a secret room.

    Whether we choose to marry, remain single or born incapacitated, it does not make us sinners or better before God. He loves all of us equally, but it will please Him to see us fulfill His desires for us. I have cleared the obstacles before you. The onus is now on you to decide what you want. Apostle Paul chose not to marry because it was his choice. Apostle Peter did not divorce his wife because of God’s work, yet God accepted them all. Decide your case by yourself.

    Remain Blessed!

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    Source by Christopher UI Ogholoh

    Views: 0

  • Why Customer Concentration Impacts a Business Sale Transaction

    Why Customer Concentration Impacts a Business Sale Transaction

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    Few owners recognize the major impact that customer concentration has on the sale of their business. Customer concentration represents a significant obstacle and will affect the salability, valuation, and deal structure of a business-for-sale transaction. Not only will it create problems in qualifying buyers but it will impact the ability for any prospective purchaser to obtain third party financing to complete the acquisition. Determining if customer concentration is present in an enterprise is a critical element of the succession planning process.

    Customer concentration is a situation when one customer represents a significant portion of revenues or when the business has a very small customer base. Based upon the expert one consults, the exact percentage for a concentration to exist varies. In most cases it is recognized when one customer represents more than 10% of sales or when the top five customers comprise greater than 25% of a company’s revenue. In either situation, a huge risk is created from the lack of diversification and steps to mitigate it should be taken years in advance of a planned business exit.

    When evaluating a business sale it is important for an owner to recognize that their client base has a significant impact on the enterprise value of the company. A broad and diverse base of customers where there are a large number of clients contributing to the business’ revenue will achieve a higher transaction value as it reduces the risk that a sizable decrease in earnings will occur if any one customer is lost or a particular industry segment that the business serves encounters economic distress.

    In addition to a lower sales price, businesses with customer concentration issues are more difficult to market for sale. For main street business transactions (those with adjusted earnings of less than $2mm) third party financing is used in the majority of cases. Businesses with high levels of customer concentration are very difficult to get financed. Lenders may provide only partial financing, offer sub-optimal terms, or decline the loan altogether. In situations where third party financing is not available, the pool of available buyers is significantly restricted and the terms of a deal could be heavily weighted on a contingent earn-out based on retaining the revenues derived by the largest customers. “Typically we want no customer concentration over a 10% level when considering financing an acquisition. Higher levels are possible with much more explanation and supporting documentation but remain a major concern” states Steve Mariani, President of Diamond Financial Services.

    Lastly, customer concentration will have a direct impact on the deal structure for the business sale transaction. Buyers will strive to bridge the customer concentration risk through a variety of delayed ‘performance based’ financing methods. For example: Assume both parties agree on a transaction price of $900,000 based upon $300,000 of adjusted earnings (a 3x multiple). If the key account in question represents $75,000 of the $300,000 this would represent $225,000 of the transaction price. A buyer will strive to isolate the $225,000 component to ensure that revenue is maintained post sale. After a period of 12 months, if the customer and income are still in place the seller would receive the funds. If the identified client and corresponding revenue was lost during this period, a pricing adjustment would be made.

    In situations where the buyer is unable to obtain transaction financing due to customer concentration issues, the seller might have to accept a “contingent earn-out” for the revenues derived from the largest customers, or worse, they may also have to finance a major portion of the “non-contingent purchase price” negotiated with buyers.

    Contingent payouts could be structured in a variety of methods:

    Earn-Out:

    Earmark part of the purchase price with payments made over a period of time contingent upon the retention of specific customers or achieving specific revenue targets.

    Escrow:

    A percentage of the acquisition price will be held in an escrow account for a specified time.

    Seller-Financing:

    The seller would be responsible for financing a major portion of the purchase price through a seller note. The seller note could be structured with contingencies for revenues derived from the largest customers.

    With any of these deal structuring techniques, the seller cannot be expected to guarantee the revenue in perpetuity and if the transaction price is based upon retaining one or more key customers, the seller may require more active involvement in maintaining the client relationship during the term of the agreement. Obviously, this brings an additional complexity to the transaction.

    In most cases, buyers will look to discount the amount they are willing to pay for a business (with high customer concentration) unless they receive assurances that the risk is low. While the obvious strategy to reduce customer concentration risk is to diversify and increase the business customer base, there are a number of situations where customer concentration either does not pose a significant risk or could be mitigated.

    Customer Contracts:

    Having a contract in place will not eliminate all of the risk of losing a key customer, but it will provide the buyer with security that the revenue and profits will continue after a change in ownership takes place. When customer contracts are involved, the ability to assign or transfer will be important to understand. In many cases, a stock sale vs. asset sale is elected to preserve these contracts.

    Barriers to Entry or Exit:

    Businesses could have intellectual property, product expertise, or patents that create competitive advantages barring competition. Others are located in geographically remote areas where the supply benefits discourage customers from changing the relationship. Lastly, there could be significant capital requirements for manufacturing and tooling or agency approvals (pharmaceutical or government contracting industry) that creates a barrier to entry from potential competitors.

    Providing a Variety of Products and/or Services:

    Having a broad relationship with a key customer where the relationship is not based solely on one product, one location, and one individual decreases the risk that a singular change will fundamentally impact the future revenue stream and continuity of the account.

    Economies of Scale or Synergies:

    The acquisition may be pursued by a strategic buyer where they are bringing new products/services to the enterprise, a broader geographic distribution footprint, or economies of scale in production. Any of these elements would assist in reducing the concentration of revenue risk that an identified key client would represent to the future organization.

    Summary

    Businesses which have high levels of customer concentration are inherently risky and it is important for the owner to appreciate this concern from the perspective of a potential acquirer. Ultimately, the buyer seeks only to retain the customers which have contributed to the success of the business and are factored in the valuation and transaction price. From the position of a buyer a few logical questions and concerns would be:

    1. How does the value of the company change if a customer representing 10% or more of revenue and/or profits is lost in the first year?
    2. How easy would it be for the client representing the customer concentration concern to leave the business?
    3. What unique situations exist within the business to preserve the customer relationship in the years ahead?
    4. What are the logical steps and corresponding costs to mitigate the customer concentration risk?
    5. How do I achieve a win-win transaction? Protecting me, the buyer, against the risk of a near term revenue loss while providing the seller with the proper remuneration for the fair market value of their business?

    While the risk may not be able to be totally eliminated, there are a number of situations where customer concentration is more palatable and a proper explanation should be provided to the buyer at the earliest opportunity. Getting out in front of this potential challenge is critical to achieve a win-win deal. When good communication exists, and two fair and reasonable parties are at the table, there are a number of structuring options available, when necessary, to mitigate the risk and negotiate a fair and reasonable transaction price. Obviously, the best approach for a prospective business seller would be to develop and implement plans to reduce any customer concentration elements years in advance of a business exit. Eliminating this type of risk is just sound advice for any small business owner regardless of whether a sale is contemplated.

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    Source by Michael Fekkes

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