GABB Spring Conference May 15: Taxes and Transitions

Learn about taxes and transitions at the Georgia Association of Business Broker's Spring Conference on May 15. Presenter Monty Walker will do two three-hour seminars. The morning session will cover a Tax Update for Business Brokers and the afternoon session will be Case Studies of Transactions. The GABB is arranging for continuing education … [Read more...]

Checklist for Valuation

1. Start with the business – Value Drivers: Size, growth rate, management, niche, history – Value Detractors: Customer concentration Poor financials Outdated M&E Few assets Lack of agreements with employees, customers, suppliers Poor exit possibilities Small market Potential technology changes Product or service very price sensitive 2. … [Read more...]

Simplifying the Valuation

“There are many reasons for valuing an entity, and those circumstances can lead to different outcomes…For instance, a business's value for sale on a going-concern basis will differ from its value for liquidation purposes. It similarly makes a difference if the valuation is for an orderly liquidation as opposed to a forced one. For example, the … [Read more...]

What Is a Business Worth?

Many courts and the Internal Revenue Service have defined fair market value as: “The amount at which property would exchange between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having a reasonable knowledge of relevant facts.” You may have to read this several times to get the gist and depth of … [Read more...]

Top Four Statistics You Need to Know About Ownership Transition

If you own a business, then ownership transition should definitely be a central topic in your planning. A few years ago, MassMutual Life Insurance Company conducted a very interesting and thought-provoking survey of family-owned businesses. Obviously, family-owned businesses have their own unique needs and challenges. The MassMutual Life Insurance … [Read more...]

Top Ten Must-dos When Selling a Business

By Loren Schmerler of Bottom Line Management, Inc. Are you ready to sell your business? Thinking about starting new adventures? Certain changes you may make now can help you increase your business value. Below are top 10 tips on how to prepare your business for sale from expert, Bottom Line Management, Inc. founder, Loren Marc Schmerler, a … [Read more...]

IRS Regulations for S Corp vs LLC: a CPA Explains

By Greg DeFoor One of the questions I get asked by aspiring or new business owners as a CPA and Business Broker is about S Corporations vs LLCs. Before deciding whether to form an S Corp or an LLC, there are a number of issues to consider. Assuming there is only one owner or a few owners and that all owners are qualified to own their respective … [Read more...]

Business Valuation: Document Shredding Businesses

By Tim Greene, Business Broker and Consultant, DeFoor Business Services Recently I exchanged emails with the owner of a document shredding business. He asked me to explain the logic behind current business valuations for document shredding businesses. I show his questions and my answers below. Why are business valuations stated as a multiple of … [Read more...]

Creating Value in Privately Held Companies

“As shocking as it may sound, I believe that most owners of middle market private companies do not really know the value of their company and what it takes to create greater value in their company … Oh sure, the owner tracks sales and earnings on a regular basis, but there is much more to creating company value than just sales and earnings” … [Read more...]

What Would Your Business Sell For?

There is the old anecdote about the immigrant who opened his own business in the United States. Like many small business owners, he had his own bookkeeping system. He kept his accounts payable in a cigar box on the left side of his cash register, his daily receipts – cash and credit card receipts – in the cash register, and his invoices and paid … [Read more...]