The time has come to begin transitioning out of the business you’ve spent your life building, but where do you begin? Whether you are selling to family, current employees, or an outside party, there are several deal structures to evaluate. We’ll discuss things to consider with various structures but always encourage you to establish [...]
Have you ever wondered, “What is my business worth?” You’ve worked hard and are committed to the success of your business, but you might be considering retirement or pursuing a different career path. You may want to sell to an outsider or your children that are actively involved in the business. Regardless of the [...]
For full disclosure, I want to start off this article by leveling the playing field on perspective by saying I am an accredited business appraiser and have no experience as a business broker. The purpose of this article is to provide insight into key differences between costs associated with the services of a business [...]
Let me begin by answering that question. No! Now it is my responsibility to explain why. While “Rules of Thumb” typically derive from industry trends and comparable company research, they miss out on vital factors that must be considered when determining a reasonable value for a business or ownership share. First, let’s start with an [...]
A captain doesn’t decide on a whim that he or she is going to sail around the world tomorrow. The voyage will take proper planning, appropriate resources, and a skilled co-captain. The same can be said for succession planning. Business owners, like captains, must plan and consider many variables before selling or transitioning their business [...]
Unlike “C” Corporations, who are taxed on their earned income at the entity level and then taxed again at the individual level on dividend distributions (distributed earnings), pass-through entities, such as “S” Corporations, Limited Liability Companies (LLC’s), and Partnerships, are taxed only at the individual owners or partners rate. However, with the implementation of the [...]
value price concept on balance scale Whether it be a business or an individual, we are taxed on the income earned. One main way the value of a business is determined is by understanding the amount of income the business will generate. To do this properly, the valuation analyst must consider the taxes [...]
Due to recent changes in federal tax law (The Tax Cuts and Jobs Act of 2017), alimony payments will no longer be tax deductible by the payor for income tax purposes through the year of 2025 for divorce decrees entered after December 31, 2018. Although alimony is not popular among those making the payments, there has [...]
On a hot summer day when I was a child, I opened a lemonade stand in front of my parent’s house. Before I knew it, I had sold my entire inventory of lemonade. My sales mixture consisted of a small portion of cash paying customers driving by, however, a large portion was “credit” sales to [...]
Do you recall a time when you were traveling between different states and noticed the interstate speed limits were different, sometimes 65 MPH and other times 70 MPH depending on what state you were in? It is safe to say that different states (jurisdictions) have different laws regarding the speed limits. It is the responsibility [...]
