By Russ Anderson, SSA, P.C., Certified Public Accountants & Advisors Generally, most small business can elect either the cash or accrual method for income tax reporting purposes. There are exceptions related to size of business, type of entity that might be a partner, and whether inventory is a material factor in producing income. The decision […]
At the end of March, I attended the ACG Capital Growth Conference, which celebrated its 13th year. The conference enjoyed record attendance of approximately 750 attendees, including many regional attorneys, accountants, and lenders. The conference was also attended by many Private Equity Groups from around the country. My takeaways from the conference are, first, that there is
Improving the Probability of Selling Your Company Read More »
If you are thinking of selling your business, I cannot over emphasize the importance of addressing the need for accurate and timely financial information. Most sellers want to maximize the price that they get for their business and keep the maximum amount of cash received at the closing table. In order to achieve these objectives, one
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I am in the middle of a transaction in which a fairly sophisticated buyer submitted a Term Sheet for a service business having a value of approximately $3 million. During the process of analyzing the offer with my client, the Seller (who is also a fairly sophisticated business man), a number of questions came up
Term Sheet vs. Letter of Intent vs. Purchase Agreement Read More »
Although this year has been the exception, buyer activity typically slows down during the summer, and picks up with intensity after Labor Day, as the vacation season ends and buyers realize that there is still time to complete a transaction before the end of the year. In anticipation of this increased buyer activity, our firm
Some of the most frequent questions we receive from sellers relate to employees. One common item we often discuss is a potential sale to an employee. While some transactions like this get completed, there are several issues that should be thoroughly thought through before making the decision to pursue selling to an employee. Confidentiality Owners
Most entrepreneurs considering the sale of their company have a legitimate concern about keeping a potential sale confidential from employees, competitors, and customers, until the transition process can be appropriately managed. Owners would not want the employees to be concerned and leave for another job, they wouldn’t want their competitors to use the potential sale
Over the years, we have be contacted by numerous business owners that are in a panic because they have been contacted “out of the blue” by a potential buyer for their business and don’t know what to do. Usually the potential buyer is a competitor, or if the business is large enough, it might be
What to do if You Receive an Unsolicited Offer for Your Business Read More »
New Year’s Resolutions to Improve Your Business The start of a new year is often a time when people think about creating new habits to improve their position in life. For owners of privately held businesses, these New Year’s Resolutions often include working on the business to improve its profitability, and value. Below are some
As 2018 heads to a close, many businesses that have calendar year ends are, or should be, in discussions with their tax advisors about year-end tax planning. Usually, the goal for most small business owners is to pay as little tax as possible. However, this may not always be the best route to the end
