cash flow | Front Range Business, Inc.

Tip #25 – Burying Excessive Personal Expenses in the Business Financials Can Lower the Business Value!

The most popular method of valuing a business uses a multiple of earnings over a period of years.

Business owners should be aware of that while attempting to reduce the bottom line with personal expenses to minimize taxes. Though there are a number of deductions that may be added back to determine true cash flow, not all add-backs are considered legitimate by buyers or lenders.

Being too aggressive in minimizing taxes today may cost a business owner big dollars at closing. Click here for an article […]

Front Range2010-08-03T00:01:00-07:00August 3rd, 2010|Maximizing Business Value|

Tip #19 – Will The Business Numbers Look Good To Anyone Else?

Business owners can operate their company as they wish, but when they are ready to sell, will it appeal to buyers?

If the numbers don’t make sense or show profits, who would want to buy it?

Business owners who want top dollar for their company must be able to reveal all elements of owner cash flow that buyers and lenders will accept. Otherwise, there will be only disappointing offers or no offers at all!

Front Range2010-02-09T00:01:59-07:00February 9th, 2010|Maximizing Business Value|

Tip #4 – Burying Personal Expenses and Assets in the Business Financials.

Minimizing tax liability is a strategy all business owners think about. But when it comes time to obtain financing or sell the business, buried personal expenses and assets can create a problem in determining the true cash flow.

Buyers and bankers won’t always give credit to many of these items. As a result, the cash flow can be suspect. And when you apply a multiplier to determine the value of the business, the results can be disappointing.

It is in the best interest of a business owner to […]

Front Range2008-10-07T00:01:05-07:00October 7th, 2008|Maximizing Business Value|