World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

Mergers & Acquisition FAQ – September 2013

Q: I am exchanging property in a 1031 “like-kind-exchange”. Can I exchange my one property for more than one property?

A: Yes. As long as the property being exchanged is within the same class, you may exchange the property for more than one property.  When dealing with real estate, you can exchange one property for up to 3 properties.

Q: I am thinking about setting up an Individual Retirement Account (IRA). What are the contribution limits for 2013?

A: The 2013 IRA contribution limits are $5500 and allow an additional $1000 “catch up” annual contribution from those turning 50 or more this year.

Q: I would like to value my business so I can sell it. Is there a multiple I could use as a rule of thumb which would be accurate?

A: No. Multiples are not recognized by the IRS as a valid valuation device.  When valuing a business for sale, it is wise to invest in a valuation.  Valuations of businesses are complex and require expertise.  Simply using a multiple ignores too many contingencies and the like to be effective as a valuation device.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors