The Business Makes $400,000… So Why Does the Tax Return Show Only $50,000? One of the biggest surprises for first-time buyers is discovering that the profit shown on a company’s tax return is often very different from the earnings a business broker advertises. This difference is usually explained by a concept called Seller’s Discretionary Earnings,…
As a business broker in Ocala, I occasionally have difficult conversations with Old Time business owners. Not because their business isn’t valuable. Quite the opposite. Sometimes owners have spent so many years building their company that they have trouble separating their personal worth from the value of the business itself. I remember one particular business…
Clean Books Increase Value If you are thinking about selling your business, one of the smartest things you can do is get your financials in order before you go to market. Clean, accurate, and easy-to-read financial statements build buyer confidence. They can also help increase the perceived value of your business. In our experience, many…
One of the most common mistakes we see business owners make is misjudging the value of their company. Sometimes they believe the business is worth more than the market will support. Other times, they assume it is worth less than it really is, or that it is not sellable at all. A recent specialty contractor…