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Archive for 'Business Valuation' Category

I can’t reduce my price because I will lose money.

By Hoke - Last updated: Sunday, August 1, 2010

A too-high price that doesn’t sell is an illusion that can end poorly if the Business Seller really must sell.

How important are Tax Returns as a means of proving Discretionary Income?

By Hoke - Last updated: Sunday, August 1, 2010

Tax Returns are just one of several means to validate Income. Some Buyers think that Tax Returns are absolute. However, they are not foolproof. There are cases where the Business Seller overstated the Tax Returns. Commercial Banks typically require the recent three years of Seller’s Tax Returns when making a Business Acquisition Loan.

How important is the Initial Ask Price?

By Hoke - Last updated: Sunday, August 1, 2010

Getting the Initial Ask Price right is a key to maximizing sales value. If the initial price is too high, the business stays on the market too long creating doubt with Business Buyers and weakening the Business Seller’s negotiating position. If the Ask Price is too low, the business may sell quicker, leaving some of […]

Are Ask Prices On The Internet An Accurate Means To Gauge The Market?

By Hoke - Last updated: Thursday, July 22, 2010

Most Ask Prices on the Internet are too high. Because they do not sell, overpriced businesses are perpetually displayed. They influence other Business Sellers who look on the Internet to price their business creating an ongoing parade of businesses that rarely sell. Further compounding too-high pricing some Business Brokers look to the Business Seller (who […]

My business makes a great living yet shows little profit.

By Hoke - Last updated: Thursday, July 22, 2010

A skilled Accountant will minimize Income and therefore taxes. A skilled Business Broker will be able to professionally recast the Financial Statements and Tax Returns to maximize Income and therefore business valuation.  As an example, Interest and Depreciation increase Discretionary Income for the purpose of a Financial Statement Recast. An understated Financial Statement Recast can […]