Selling A Medical Spa The sale of a medical spa in South Florida should always be handled in a confidential manner so as not to disrupt the practice by alerting any employees, competitors, or customers that the spa is for sale. Prior to selling, a medical spa owner should let an experienced and local business … Read more
Heuristics May Lead to Cognitive Bias For decades, economists assumed that when making decisions people always act rationally – or within a logical and predictable decision making framework that maximizes their own economic self interests. This assumption changed beginning in the 1970s when psychologists Daniel Kahneman and Amos Tversky reshaped our understanding of human nature … Read more
Redevelopment Clauses Impair Leasehold Rights A valuable asset of many businesses – particularly in retail-related industries – is its leasehold right or the right of a commercial tenant to temporarily occupy leased premises. A business with a secure long term lease allows a buyer enough time in which it may obtain an attractive return on … Read more
Business Owners Care About Their Legacy A legacy is the long-lasting impact of a person’s life that may ‘echo in eternity’ (to quote Maximus in ‘Gladiator’). Legacies may come about from a financial legacy, or the passing on of financial assets to one’s designated beneficiaries. Those seeking financial legacy planning should consult with their appropriate … Read more
Depreciation Affects Business Valuations Depreciation is an accounting method used by businesses to spread out the cost of up front capital expenditures (capex) over time in their income statements. Businesses may use depreciation as a taxable deduction when purchasing tangible or physical assets that have a useful life of more than one year. The taxable … Read more
Fast Franchise Resales A franchise is a license granted by a franchisor to a franchisee for the purpose of conducting business under the name of the franchisor for a set period of time within a prescribed territory. Franchise resales occur when an operating franchisee decides to sell their franchised business. A franchise operating agreement stipulates … Read more
Selling Tutoring Businesses Tutoring businesses provide personalized educational instruction to students in their home or in a dedicated learning environment. Most tutoring companies specialize in tutoring K-12 students who struggle in school and need extra one-on-one guidance and assistance to keep up with their classes and homework. Tutoring businesses with leased premises set up to … Read more
Financial Synergy Increases Business Valuations The combination of two businesses from a merger or acquisition often results in financial synergies or the collective benefit from revenue enhancements and cost savings. A merger or acquisition is more likely to result in financial synergies when the two companies have complementary strengths and areas of operations which may … Read more
Inherited Businesses The passing of a business owner is a difficult and tragic event that often comes unexpectedly for their loved ones. Assuming that the business is a part of the decedent’s estate, it is ultimately inherited by an heir (where there is no will) or a named beneficiary in a will or trust. Unless … Read more
Restaurant Sales: Competitive Marketplace Restaurant owners may have many reasons for wanting to lead a less stressful life by way of selling their business. Whether faced with unreliable employees, higher food costs, or unhappy customers, restaurant owners often find themselves burned out and ready to sell. Indeed, there are currently over 100 restaurants for sale … Read more