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Knowledge Base

How to Avoid Taxes When Selling Your Business

Three ways to avoid paying taxes when selling your business.  1031 Exchange  In a 1031 exchange the seller of a business is required to buy another similar business after the sale of their current business. To meet the exchange rules the seller has to identify three potential new businesses within...
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Five Ways to Increase the Value of Your Business

Want to grow your business revenues and increase your business’s exit value? Here are five of the most important ways to building business value: 1. Differentiation from the Pack—Develop Your Unique Selling Proposition If low prices are your chief competitive advantage in a marketplace where prices are on the decline...
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What information should I share with a Buyer?

If you are meeting with a Buyer to discuss the sale of your business be sure he has signed an NDA (non-disclosure agreement) to protect your interest. When you meet with the Buyer only give them the information necessary for them to make a decision on a purchase. Customer names...
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What is SDCF (Seller’s Discretionary Cash Flow)?

Definition The pre-tax earnings of the business before non-cash expenses, one owner’s compensation, interest expense or income, as well as one-time and non-business related income and expense items. If there are additional owners working in the business, their compensation needs to be adjusted to market rates. What It Means Seller’s...
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Stock or Asset Sale – Whats the Difference?

One of the key questions Buyers and sellers face in every business sale is the related tax implications. Tax implications are based on how the transaction is structured. Without proper consideration, there can be unintended consequences and unexpected costs.  Corporations can be sold as either stock or asset transactions. This...
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Factors Affecting the Salability Of A Business

We have done extensive research on the sales of private companies and compiled a list of 21 factors that affect the salability of your business. It should be no surprise to anyone that the financial results of the business ranks as the number one factor that affects the salability of...
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Private Company Valuation Trends

Over the last several years, the M&A markets in the U.S. have been fueled by an increased access to capital and improving economic conditions. In general deal multiples for small and mid-market companies have increased since the collapse of the financial markets in 2008. The wild swings seen in public...
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Buyer Feasibility Test

It is very common for a business owner to overestimate the value of his or her business. This is quite natural since we all want our businesses to be worth as much as possible—especially when it comes time to sell. Because of a Buyer’s need to capitalize the acquisition, typically...
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Reduce bounce rate on your website to improve sales

If you’ve been struggling to increase search traffic to your site, improve email signups, get more leads, and acquire more clients, it’s possible that your bounce rate is too high. In other words, visitors and customers who visit your landing page bounce off before they even give you a chance...
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Selling a Business with Unreported Income

A question that occasionally comes up in our Business ProSell program is whether a seller can and should reveal to prospective buyers that the business produces extra income not reported on tax returns. The purpose, of course is to let the buyer know there is more income to be made...
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Customer Loyalty Trumps Satisfaction

In this environment, it’s all about satisfying the customer. Do what you say you’ll do, meet client expectations, and your business will thrive, right? Not quite. According to Eric Gregg, managing partner of Inavero, a Portland, Ore.–based research firm specializing in satisfaction surveys for professional services firms, many companies get...
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