Certified business appraisals have traditionally been required by lenders as a pre-condition for final loan approval on larger deals. In today’s skittish and skeptical financial environment, certified appraisals of both the business as a whole, as well as of its…
Introduction As the country has been in a recession for the past year, many companies have endured economic hardships. These hardships include loss of revenue, lay off of qualified employees, debtor defaults, bad cash flow, delayed cash flow and vanishing…
The Tax Court ruled that payments made by a corporation to a married couple were repayments of a loan made by the wife. In this case, the wife loaned money to a corporation, in which her husband was the sole…
Q: I am a businessperson with accounts receivable owed to my business. If my clients do not pay their obligations, can I “write off” the amounts clients do not pay? A: This depends on whether you are a cash basis…
It seems that more and more business owners are asking me that question these days. Given the recent “perfect storm” of collapsing financial markets, tighter credit, growing unemployment and a worsening economic recession, it’s a very fair question. My answer…
Introduction Many people want to enrich their children and grandchildren with their wealth, possessions, and business interests which they own. The problems in the past have been inability to control the assets once they were given and the potential of…
The Tax Court has partially upheld the discounts applied in the valuation of two closely held companies for estate tax purposes. In the case, when the decedent died she held a 43% interest and 23% interest in two closely held…
Q: Does a down economy affect business succession planning? A: For the most part, it can be advantageous to start a succession plan during a down economy or even sell a business interest to a succeeding generation. During recessions, business…
Selling a business is something that most business owners will only attempt once in their career. With an estimated 70% – 90% of their total net worth tied up in their business, they can’t afford to make a costly mistake,…
Introduction If you’ve paid any attention at all to the news recently, you are well aware of the country’s current credit crises. The gross liquidity that was available just a few short years ago, to nearly any borrower is now…