What’s Your Small Business Worth?

How to value business interests It is often difficult to put a price tag on a company that is not publicly traded. For instance, the value of a family-owned business will typically exceed the total value of the hard assets such as equipment and inventory. In addition, assigning a value to intangible assets such as
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Beer & Taxes

The rise of craft breweries in the United States has brought into question the current taxation of breweries.  Presently, there are two proposed amendments to IRS Tax Code to adjust the excise tax on beer:  the Small BREW Act and the Fair BEER Act.   Barrels Existing Law Small BREW Act Fair BEER Act 0-7,143
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When Do I Need a Forensic Accountant?

In my November 7, 2014 blog, I wrote broadly about the role of a forensic accountant in analyzing, clarifying, and summarizing complex financial situations.  As a reminder, forensic accountants are frequently contracted as experts in litigation or as financial consultants in contentious circumstances, namely spousal divorces or business transactions. In many instances, personal and small
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Is EBITDA The Same As Cash Flow?

EBITDA is often used and confused as a proxy for operating cash flow but there are two reasons EBITDA does not equal cash flow. But first understand that EBITDA is used throughout the business community from valuation multiples to covenants in credit agreements.  It is the standard metric in the business world when discussing the
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Business Valuation – A Blueprint for Growth

Tis the season for reviewing last year’s financial results and budgeting for this year.  What is a main goal for closely-held business owners in analyzing historical results and predicting future outcomes: assessing progress and growth. What can you focus on to increase the value of your business?  A business valuation can be a blueprint for
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Why Do I Need a Forensic Accountant?

Disentangling finances is frequently difficult, whether it is between: spouses (in divorce) or business partners (in disputes) Forensic accountants are in the business of identifying the problem, digging through the details, and clarifying the issues, thereby reducing the stress for all parties.  If need be, a forensic accountant can succinctly present evidence in court to
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Introduction to Business Valuation: What is Business Valuation?

If you own a business, it is frequently among your most valuable assets. However, do you really know what that business is worth? Over the next few posts, we’re going to review the basics of business valuation, including the various methods of establishing value and how to choose the method that best applies.

Questions to consider when reviewing your buy-sell agreement

Buy-sell agreements are often one of the most critical documents for owners of a closely-held business. Buy-sell agreements are meant to accomplish the following: Define the value of the owners’ equity interests; Spell out the nature of the transaction, including price and terms, when an owner leaves or dies; and Identify or assure financing is
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