SELLING PRIVATELY HELD BUSINESSES


–SINCE 1982–

Articles & News

Timing Your Business Acquisition in 2021

There is an old saying that “timing is everything“. That is especially true in the investment world. Be it the stock market or buying a business, timing can be critical to the rate of return on investment or even the survival of the investment. Although there are many people far more qualified than me to address the timing in the stock market, I will address the timing of business acquisitions in the current market. Business Acquisitions in the Current Market In addition to what my team is experiencing at the FBB Group, conversations that I have with business intermediaries across

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The Current Status of the Business Transfer Market in Colorado

Not all markets are created equal. In Colorado we are fortunate that we reside in a state with a dynamic economy and a high quality of life. Consequently, for better or worse, we have significant in-migration which is helping to fuel strong job and housing markets. To a certain extent, this is a variation of the old “did the chicken or the egg come first” question. Are companies relocating and expanding in Colorado because of a growing workforce or are people relocating to Colorado because of the strong job market? In any event, the labor market is a significant factor

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Proposed Tax Increases That Can Impact the Sale of a Business

Recently the Biden administration has proposed numerous tax increases to pay for its infrastructure plan.  Two of these changes, an increase in the Federal Capital Gains Tax, and changes to the Estate Tax can have significant tax implications to entrepreneurs.  We will address both proposed changes below. Capital Gains Taxes For capital gains taxes to apply, an asset needs to be owned by the taxpayer for a year or longer.  The gain is calculated by taking the sales price, less appropriate expenses of sale, and subtracting the taxpayer’s basis.  (Note: This calculation can be more difficult than it seems, and

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Why 2021 is a Good Time to Sell a Business and Why 2021 is a Good Time to Buy a Business

Although the title to this month’s article may seem contradictory, I believe that the title is accurate.  On the sell side of the equation, we have several factors: It is a Seller’s Market as there are fewer business available to purchase.  Many businesses did not survive the COVID-19 shutdowns, and even more were financially wounded and will not go to market until they are healed.  There are more confident, financially qualified buyers than businesses and the factors of supply and demand come into play. Money is cheap and available, which permits buyers to pay more and acquire larger businesses due

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What a Difference a Year and Several Trillions of Stimulus Dollars Make!

When you are reading this article, on or about March 9th, it will be approximately 51 weeks since most of the country shut down in an effort to control the spread of COVID-19.  At that time, the majority of the population and financial markets were gripped in fear, due to the unknown impacts of the virus.  At the time of the shutdown, my firm had several transactions in process.  Not surprisingly, all of them imploded as buyers did not want to buy a business that was shut down and lenders did not want to loan money to purchase a business

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Buyer Acquisition Incentives For 2021

Buyer Acquisition Incentives Although December 2020 was a strong month for business transaction closings for The FBB Group, I believe that most of us are glad to see 2020 in our rear view mirror and are looking forward to a “Back to Normal 2021”. For the business transfer industry and sellers considering a sale in 2021, Santa delivered a late but significant gift when the President signed the Consolidated Appropriations Act of 2021. This legislation included significant incentives to purchase a business with SBA funding, which can apply to loans up to $5,000,000 for a business acquisition and even larger

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New Year’s Resolutions for Entrepreneurs

  eNewsletter December 2020 Featured Clients this issue: **Details of each client below article   – B2B HVAC Contractor with Real Estate #1620 – “Off The Grid” Holistic Forestry Services #0720 – Top-Rated Fitness Franchise in Great Location #0619 New Year’s Resolutions for Entrepreneurs As we head into the Holiday Season, human psychology kicks in and we start making resolutions for the new year, 2021. On a personal basis, that may include vacations, home projects, or something more life changing like changing jobs, or moving to another city. If you are an entrepreneur, you might be planning to expand your

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Use Good Timing to Improve the Probability of a Faster Sale

Many business owners do not take into account the role that timing plays in completing a transaction when selling a company. There are two components of timing: When the business is exposed to the market and being able to react in a timely manner. When the business is exposed to the market – I have previously indicated, that if I were advising a client relative to the best time to put a business on the market, I would indicate that I would want to put the business on the market at the end of November or the beginning of December.

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Tis the Season: To Visit Your Tax Advisor

In my opinion, September and early October is the best time of year to be in Colorado. The weather is dry (although this year, too dry) and the evenings cool down to provide crisp, clear morning air, unless we are dealing with smoke from wildfires, like this year. The weather is also a reminder that we will be going into the holiday season in November with Thanksgiving, followed by Christmas, Chanukah, and a new year, 2021. Assuming that December 31 is the end of your year for tax purposes, It is also the time, if you have not already done

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Maximizing the Value of Your Business with Concentration

One of the keys to success is to surround yourself with smart people. Although I am not saying that I am successful, our firm has been in existence for over thirty-eight years and I have been blessed to have many great and talented team members. I mention this because one of my current team members, Scott Densmore, authored this month’s feature article and I encourage you to play the accompanying video. Concentration Concentration is not always about mental focus. Here, we are referring to Customer Concentration, Product Concentration, and Supplier Concentration. The higher the concentration, the higher the risk there

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