Business Brokers Generally Do Not Specialize Hiring the right business broker to sell one’s business can be a serious challenge. The seller of a business has often devoted the majority of their working life to the business, and rightfully expects the broker entrusted with selling their business to be well informed and knowledgeable about the … Read more
What is ‘Flipping A Business’? When the real estate market heats up, many investors attempt to flip properties. This is attempted by buying distressed properties (for cash), fixing them up, and then within a few months flipping the properties by selling them at a significantly higher price. Some investors have had success with such an … Read more
Negotiating Business Sales In the course of selling or buying a business, most parties engage in some level of negotiation over the terms of the deal. Sometimes this negotiation may lead to the deal falling apart and sometimes this may lead to a deal’s amicable resolution. Assuming that both parties want to make a deal, … Read more
Defining Service and Retail Businesses The different characteristics of service and retail-related businesses play a large part in how they are ultimately valued. Retail businesses generally have a retail-oriented location that is open to the public and from which they sell goods or products directly to consumers. Service businesses may be operated from anywhere (including … Read more
Selling An Unprofitable Business Selling an unprofitable business is not an easy task. Normally, most buyers will be quite reluctant to take over a business that is losing money. As a result, they will only be willing to pay the worth (or a discount to the worth) of the company’s tangible assets (physical assets or … Read more
A Quick Business Sale Some business owners may be faced with a situation where they are forced to sell their business as quickly as possible. Typically, family or health issues will be the cause of needing an unusually quick sale. Under these circumstances, a business seller should organize their company’s financials and company records in … Read more
‘Family-Run’ Businesses Very Common Small businesses that are ‘family-run’ are are quite common. Recent statistics show that 77% of new small businesses are operated with the significant involvement of a family unit, and 32% of ‘family-run’ business owners are apprehensive or worried about possible conflict upon the transfer of the business to the next generation. … Read more
What is Free Cash Flow? When it comes to selling a business, free cash flow is a very useful metric when determining the value of the business. Free cash flow is traditionally defined as a measure of profitability that begins with a company’s ordinary net income (or taxable net income) and then excludes non-cash expenses … Read more
What is A Capital Gains Tax? A capital gains tax applies to the sale of capital assets (such as stocks, bonds, real estate, and business assets) whereas an ordinary income tax applies to regular earned income. The capital gains tax rate is significantly lower than the ordinary income tax rate because of the general feeling … Read more
Selling A Check Cashing Business The check cashing industry serves a unique and specialized niche in the South Florida economy by allowing non-banked individuals to cash checks. Most check cashing store customers are small business owners or construction-related workers who do not have a bank account or do not wish to deposit checks using a … Read more