If a business consistently reports losses on its tax returns year after year, this could trigger an audit. See #2 above…..you have a multi million dollar house on the water yet your business shows a loss. True story of a childhood friend I knew and their business….never made money but had nice houses.
transworldma
How does work in progress get calculated in a business sale?
Calculating work in progress (WIP) involves determining the value of partially completed goods or services that are still in the production process. The calculation of WIP is important for determining the current value of inventory and for monitoring the efficiency of production processes.
RECAPITALIZATION: THE SECOND BITE OF THE APPLE
A recapitalization, also known as a “recap,” is a financial transaction that involves changing the capital structure of a company. In a recapitalization, a company typically restructures its debt and equity to improve its financial position, increase its liquidity, or achieve other strategic objectives.
Key Questions A Buyer Will Ask About Your Business
Another post from our Mergers and Aquisitions Team in Clearwater Florida. For information on Mergers & Acquisitions and or Business Sales Contact Michael Shea with Transworld Business Advisors KEY QUESTIONS A PROSPECTIVE BUYER WILL ASK ABOUT YOUR BUSINESS Regardless of the sweat equity you may have invested in building your business, when you […]
The Benefits of Recasting
Mike Ertle of our M&A practice had a great article on Recasting and why it is so important for small business owners. BENEFITS OF ANALYZING AND RECASTING/RESTRUCTURING YOUR FINANCIAL STATEMENTS Working with another client recently I was struck once again by the importance of analyzing and recasting – and possibly even restructuring – your […]