Seven Powerful Business Ratios to Start Tracking Now

 Doctors in the developing world measure their progress not by the aggregate number of children who die in childbirth but by the infant mortality rate, a ratio of the number of births to deaths.  Similarly, baseball’s leadoff batters measure their “on-base percentage” – the number of times they get on base as a percentage of […]

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On February 12, 2012, posted in: Featured Articles by

Keeping Up With Technology

Not all businesses need to have cutting edge technology, but a company can’t fall too far behind.  Buyers will be concerned if they must make a large investment in the latest technology to get the company to a competitive level.  A business owner should do the necessary research and purchase the technology to keep the company on par […]

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On January 22, 2012, posted in: Featured Articles by

MAXIMIZING BUSINESS VALUE

Business Owners Who Do It All! Some businesses can’t survive without the owners trying to do everything themselves.  And there are no key employees in place to help manage the operations.  Buyers for businesses like these may be concerned if they themselves can’t replace the skills and experience of the owner.  As a result, these […]

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Selling in an Economic Downturn

Though the recent economic slowdown has produced a notable decline in acquisition activity, activity continues to remain well above historical norms, indicating that there are still many buyers looking for viable targets.

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Recast Financial Statements

Financial statements and tax returns are prepared for tax purposes, not for business sale purposes. The objective of most business owners and their financial advisors is to use all available accepted accounting methods to minimize a company’s taxable net income. This strategy is effective for minimizing taxes, but is entirely inappropriate for business sale purposes. […]

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Importance of Clean Records

Many times a business owner lives out of his business, and his books and records are not kept as well as they should be. Even with a solid, well-run business

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Capital Gain Rate Increase

Due to a time lapse built into the regulations associated with the 2003 gain reductions, known as a Sunset Provision, the current capital gain rates are scheduled to expire on December 31, 2010.

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Prepare to Sell Later

Most people incurring a capital gain from selling a business are in, at least, the 25% tax bracket. In 2003, the top tax rate on most capital gains was reduced from 20% to 15% for people in the 25% or higher tax bracket.

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Business Key Value Drivers

To maximize the fundamental value of a business, key value drivers must be identified through each step of the selling process. These drivers should be measured on how they contribute or detract from the value of the business

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