By C. Brett Cooper, CPA•ABV, ASA•BV/IA, BVAL, CRFAC We hear there’s a common saying in courtroom proceedings that a lawyer should never ask a witness a question unless they already know the answer. We suggest that the same basic concept applies to your business when you place it on the market for sale. The following diagram depicts the typical timeline and … [Read more...] about Selling Your Business? Are Your Earnings “Quality Earnings”?
Working capital is vital to the success of all businesses in order to maintain operations and provide for growth. The term “working capital” is an abbreviated version of the more proper financial and accounting term “Net Working Capital”—the amount of liquid assets available to a business and calculated by subtracting current liabilities from current assets. Some financial … [Read more...] about Working Capital – Issues Beyond Solvency
ESOP is short for an Employee Stock Ownership Plan and is an employee retirement plan as well as a technique of corporate finance. An ESOP can be used to finance the transition of ownership, raise new equity capital, refinance outstanding debt or acquire productive assets. ESOPs can also be used to increase cash flow by making plan contributions in stock instead of cash. … [Read more...] about Should You Consider an ESOP as Your Business Exit Strategy?
Last month, Rene J. Zarate discussed the starting point for a business owner who receives an unsolicited offer from a third party to buy their business. So, here you are with an unsolicited offer in hand. You have determined that you are desirous of selling, the amount you require to meet your future financial needs, and you have a good feel for the business’ value. What’s … [Read more...] about Creating Value in Your Business