Tip #70 – “Mystery Profits” May Not Be Recognized By Buyers For The Business – And Certainly Not By Lenders!

Cash In The TrunkIn order to avoid taxes, some business owners have found ways to hide what should have been shown as profits.

Sometimes it’s pocketing cash, sometimes it’s moving revenues into another year, and other creative ways.  But when it comes time to claim how profitable the company really is, buyers aren’t buying it, lenders turn their heads and laugh, and due diligence can destroy a deal.

In order to get that top dollar price, businesses must show all profits over a period of years.

Michael MarksMichael Marks, creator of Toons ‘n Tips, is a Certified Business Intermediary (CBI) and has over thirty-six years of business experience and ownership. He is a licensed real estate broker in the state of Colorado and has been selling businesses for over eighteen years. Michael has taken up cartooning as a hobby in recent years and has found that by using those skills, along with his extensive business experience, he has been able to create the Toons ‘n Tips drip marketing service for clients all over the country. Find out more about Michael at www.toonsntips.com.
2014-10-21T10:23:37+00:00 October 21st, 2014|Maximizing Business Value|