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Hidalgo County Herald
Lordsburg, New Mexico
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August 6, 2010     Hidalgo County Herald
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August 6, 2010
 

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HIDALGO COUNTY HERALD FRIDAY, AUGUST 6, 2010 3 SBDC Report Cash flow is decisive when pricing small business By WAYNE UNZEIDirector of Business Brokerage at Maestas & Ward Commercial Real Estate Pricing a business for sale requires evaluating its cash flow--another name for a business's earnings before inter- est, taxes, depreciation, amortiza- tion and owner's compensation are subtracted. Cash flow is then multiplied by a number that falls within a range appropriate for the industry and market a number that takes into account other vari- ables that affect the business. But unlike multimillion dol- lar enterprises, small businesses often find much of their cash flow goes toward the owner's compen- sation (salary and benefits). To accurately determine a small business's true cash flow, its owner's total compensation pack- age'must be removed from the equation to reveal essential op- erating expenses and thus avoid undervaluing the business• The easiest and most widely accepted way to do this is to add all components of the owner's compensation -- things like health insurance premiums, sal- ary, auto lease and profit sharing to the earnings before interest, taxes, depreciation and amortiza- tion (known as EBITDA). Other additions might include non-re- curring expenses such as one- time moving expenses; however a seller must be able to prove all the cash flow components. This means any expense he maintains is not business-related or is per- sonal compensation must have a , m" ' n:mero:s nieces, nephewls, cous- Angel Q. Lopez ins and friends. Visitation was held Sunday, Angel Q. Lopez, 77. a resi- dent of Lordsburg, NM. entered eternal rest Wednesday, July 28, 2010 at Las Cruces Nursing Cen- ter. He was born February 28, 1933 to Matins Lopez and Elvira Quevedo in Lordsburg, NM• He was an Air Force veteran having served for 21 yrs. He is survived by two sons. Matins Manuel Lopez of Silver City; Angel Tom Lopez and com- panion Vickie of Albuquerque; one brother. Matins Lopez Jr. and wife Rosalina of Lordsburg; two sisters, Sara Gutierrez of Victorville, CA; Jenny Lopez of Los Angeles, .CA: five grandchil- dren, Angel, Eloy, Joshua, Mat- thew and Mikaela; two great- grandkids, Santiago and MakavaHi; special uncle. Pete Quevedo of Bayard; special aunt, Maria Padilla of Phoenix, AZ; August 1 st from 5-6 pm at St. Joseph's Catholic Church with prayer vigil following at 6 pm with Kevin McDonald reciting the vigil service and holy rosary. The funeral liturgy was cel- ebrated Monday, August 2 "d at 10 am at St. Joseph's Catholic Church with Father Mike Will- iams officiating. The interment followed at Shakespeare cem- etery with full military honors. Pallbearers were Matins Manuel, Joshua Manubl, Michael, Jimmy and Lupito Lopez. Oscar Flores Jr•. and Vincent Ruiz Jr. Honorary pall- bearers will be his grandchildren and great-grandchildren. Arrangements were with Terrazas Funeral Chapels "Trusted care for the ones you love" ~ 575-537-0777. To send condolences, visit www.terrazasfuneralchapel.com. Deming Silver City area (575) 546-0070 (575) 537-0777 Local Calls (575) 542-3330 Reasonably Priced Funeral And Cremation Services Excellence in service and care for your family should always be affordable,.. It can and always will be with Us. DECLARATIONS OF CAND DACY DECLARAT ONS OF CAND DACY I, Lloyd V. Payne, hereby announce my candidacy for re-election to the office of Hidalgo County Probate Judge. Lloyd V. Payne I,'David A. Ramos, hereby announce my candidacy to the office of County Commissioner Position 1. Your vote and support in the November 2, 2010 General Election will be appreciated• Thank You and Muchas Gracias. David A. Ramos I, Jody Hatch, hereby announce my Republican candidacy to the office of Hidalgo County Assessor. Your votes of support are appreci- ated. Jody Hatch I, Saturnino "Nino" Madero, would like to announce my Demo- crattc Candidacy for Hidalgo County Sheriff. I have been the Under Sheriff for Hidalgo County for the past eight years. As a secondary career I am a Certified School Bus Safety Inspector for the State of New Mexico since 1996, performing School Bus Safety Inspections throughout the state• I have been a Firearms Instructor since 1994 and New Mexico Press Iiii Association Member Hidalgo County Herald (USPS 020697) is published weekly by Hidalgo County Herald in the City of Lordsburg, County of Hidalgo, 212 E. Motel Drive, Suite B, Lordsburg, New Mexico 88045-1948, 52 issues a year. Subscription rates vary. Subscription rate is $30 per year. Requests for corrections and complaints concerning news and editorial content of the Hidalgo County Herald should be di- rected to the editor, For further information on the Hidalgo County Herald's approved grievance policies, readers may, contact the pub- lisher. Any unsolicited manuscripts become the: property of the Hidalgo County Herald and will not be returned. All information con- tained herein is copyrighted 2010 by the Hidalgo County Herald. All photos/stories, unless stated, are written by our staff. POSTMAS- TER: Send address changes to Hidalgo County Herald, 212 E. Mo- tel Drive, Suite B, Lordsburg, NM 88045-1948. Periodicals Postage Paid at Lordsburg, New Mexico. PUBLIsHER/EDITOR: Brenda Hood ADVERTISING MANAGER: Glenda Greene PHONE: 575-542-8705 FAX: 575-542-8704 E-MAIL hcherald@aznex.net receipt or other validating docu- ment supporting the claim. This revised cash flow sum is multiplied by 2.0 or 3.0 to ar- rive at a range of business value; if the resulting number is less than the current value of the business's assets, the asset value then becomes the company's true value. The cash flow multiple can be increased somewhat if cash flow exceeds $300,000 and even more when it passes $500,000 since more debt can be serviced at that level. Other factors that can influ- ence the value of a business are age and condition of equipment, real estate owned by the company, age of business and history of profits, among other things. Here's a sanity test to employ when trying to decide if a busi- ness is fairly priced: After a typi- cal down payment of 30 to 35 percent, the business's cash flow should be able to retire the bal- ance of the debt while providing the buyer an adequate living wage. To illustrate this equation, let's say ABC Inc. has a net profit of $30,000 on sales of $600.000. For an accurate number of this business's value, consider that the business's operating expenses include the owner's salary ($50,000), his health insurance premium ($5,000), his profit shar- ing ($20,000) and his leased com- pany car ($7,000 per year). Other cash flow components in the op- erating expenses include interest payments of $10,000, deprecia- tion of $25,000 and amortization of $3,000. When these operating expenses are added to the net profit, the cash flow of this busi- ness is a respectable $150,000. Multiply that number by two or three, and ABC Inc. is worth be- tween $300,000 and $450,000. If the buyer put down $150,000 (one-third) on an offer of $450,000, the debt service would be about $4.528 per month on a seven-year payout at 7 per- cent annual interest (standard terms). After servicing the $54,300 annual debt, the buyer would still have about $96,000 remaining as his compensation package and return on his initial investment. The Western New Mexico University Small Business Devel- opment Center (SBDC) offers as- sistance to entrepreneurs who are starting a business or wanting to expand an existing business• These services are available at no cost. Call 538-6320 for an ap- pointment with a business advi- sor, or email sbdc@wnmu.edu. The SBDC office is located on the second floor of the Besse-For- ward Global Resource Center on 12th Street. More information may be found at www.nms bdc.com/silvercity/ index.html. The SBDC is presenting "How to Write a Marketing Plan" on August 5. Call or email the office for more information. Lopez wins charcoal grill Zariah Lopez was the lucky winner of a free Weber charcoal grill given away by Saucedo's Super Market. The winning name was drawn by Mario Nieto. Courtesy photo GCAG to feature Soule this weekend Submitted by GRANT COUNTY day August 8 is Donna Schmidt with local artist Tom Holt. In ad- ART GUILD/Silver City who always wanted to do oil dition she has taken workshops The featured artist at Grant painting, but until she retired in with Jerry Jenkins. Julia McKee County Art Guild Gallery for Fri: 1998, she did not have the time of Tans. New Mexico, David day August 6 and Saturday Au- to do so. Upon retirement she Schwindt. Bill Galten. Crystal gust 7 is local artist Mary Marga- started taking oil painting lessons ret Soule'. with a local Southwest artist. Foreman Brown, Krystyna The featured artist for Sun- Ruby Cox and has also studied Robbins of E1 Paso. Texas; and is Public education contractor scheduled to taken Ken Hosmer 7 workshop this summer. Donna loves the colors of the Southwest awareness program set for Aug 17 and s.ow00 that love in her land- scape, still life and floral paint- Courtesy information lars in repairs and lost products ings. She describes her reason for The Pipeline Group's annual are incurred due to "third party" painting as "It allows me to ex- "'Public Education - Contractor incidents - someone digging into Awareness Program" will be held a pipeline. Thousands of commu- press the beauty that God .has at 6:30 p.m. on Tuesday August nications, some life-threatening, given us to enjoy and it seems 17, 2010. at the Mimbres Valley may be disrupted when expen- like a natural expression of that Special Events Cnter. 2300 E. sive fiber-optic cables are dam- love". Pine, in Deming, '4ew Mexico. aged or severed. These types qf Grant County Art Guild gal- The program will be sponsored excavation can be financially lery is located in the historic by a group of companies with a devastating to the responsible Hearst Church on Golden Avenue common goal of preventing ac- party. This safety program is an in Pinos Altos and is open Friday cidents and damages to under- attempt to help those who do ex- through Sunday from 10 A.M. to ground pipelines and utilities. A cavation work to avoid such situ- S P.M and exhibits a variety of free Dinner will be catered by La ations. Sponsors for the program Fonda Restaurant for all persons include: Kinder Morgan Texas arts as well as crafts. Visitors are involved in excavation related Pipeline. invited to visit the gallery and activities in Grant, Hidalgo, and For more information call meet the artists. Go to Luna counties. Following the (800) 982-8752 or visit www.gcag.org for more informa- Dinner, a brief safety program will www.pipelinegroup.com tion be presented which stresses the importance of accident preven- Senior Citizens Lunch Menu tion by identifying pipeline and utility rights of way, use of one- Monday, August 9 Mexicorn call systems, and the importance Chicken Fried Steak Saltine Crackers of working with pipeline and util- Mashed Potatoes/Gravy Mixed Fruit ity companies to safely excavate Mixed Vegetables Thursday, August 12 in the vicinity of underground WW Roll/Margarine Macaroni & Cheese facilities. The Texas law requir- Strawberries/Vanilla Wafers Brussels Sprouts ing notification to a one-call sys- Tuesday, Augusl 10 WW Roll/Margarine - tern before excavating will be dis- Chicken & Noodles Chocolate Pudding cussed. Sponsors will provide Peas Friday, August 13 promotional materials; including Carrots BBQ Beef Sandwich notification information for their WW Biscuit/Margarine Pickle & Onion Slices companies, safety related bro- Pears in Grape Juice Pasta Salad chures and other Safety remind- Wednesday, August 11 Green Beans ers. Taco Salad Peanut Butter Cookm Each year many lives are in- *t jured or lost, plus millions of dol- Inventory of Quail y m the Area! at present I also instruct Survival Spanish to the cadets at Western New Mexico University. Prior to that I hive worked for the Motor Transportation Department, the Lordsburg Police Department and started my career with the Hidalgo County Sheriff's Department as a Detention Officer 22 years ago. I have been a big part in appropriat- ing grants and programs that have boosted equipment and vehicles that the Sheriff's Department has today. Your vote on November 2, 2010 will be greatly appreciated. Saturnino "Nino" Madero I, Mark Thomas, hereby announce my candidacy to the office of Magistrate Judge. Your support in the November 2, 2010 Geiaeral Election will be appreciated. Mark Thomas I, Warren D. Walter, Republican, announce my candidacy to the office of Hidalgo County Sheriff. Your votes of support in the Novem- ber 2, 2010 General Election will be appreciated. Warren D. Walter I, Larry P. Martinez, hereby declare my candidacy to the office of Hidalgo County Commissioner, Position 2. The future of Hidalgo County is based on: • Our Children • Economic Growth - Education • Government transparency with spending • Opportunity for jobs with work ethics Your support in the upcoming November 2nd 2010 General Election will be greatly-appreciated Larry P. Martinez I, Darr Reynolds Shannon, a Republican hereby declare my can- didacy to the office of Hidalgo County Commissioner, Position 2. Your vote of support during the November 2, 2010 General Election will be very much appreciated• Darr Reynolds Shannon Check Out these great on used '[tucks! 1999 Kia Sp0rtage 2000 Ford Expedition 1995 Ford F-250 2007 Ford Expedition 2008 Ford F-350 Diesel 2002 Ford F-150 NICE! 2009 Ford F-150 G01d 2003 Chrysler Town & Country Van 2008 Ford Taurus 2001 Lincoln Continental 2003 Ford Crown Victoria 2010 Ford Fusion; Very Low Miles 2007 Mercury Milan 2009 Ford Focus (Blue) O 41:2 E. Motel Drive, Lordsburg, NM I, Ed Kerr, ask for your vote for Hidalgo County Commissioner Position 1 in the November general election this fall. Ed Kerr I. Nyla Dawn Walter, Republican, declare my candidacy for Mag- istrate Judge of Hidalgo County. I respectfully 'request your vote in the General Election, November 2, 2010. I will honor your support with honesty and fairness. Nyla Dawn Walter I, Theodoro V. "Chopo" Castillo, hereby announce my candi- dacy to the office of Hidalgo County Assessor. Your support in the November General Electionwill be very much appreciated. paidbycandidates Theodoro V Castillo 7,IrTI-IIltlMH IlN'] [7ll][I]llHfIl$11111lt]ll]l IIIIIIIIII Ilil II!1111i[11111111  I ' I '  t