Comments for Elite M&A Blog http://blog.elitemanda.com Perspectives on Mergers & Acquisitions in California Central Valley Fri, 12 Mar 2010 01:20:56 +0000 http://wordpress.org/?v=2.2.1 Comment on Know What You Are Getting With An Earnout by Lake Falconer http://blog.elitemanda.com/archives/31#comment-3368 Lake Falconer Mon, 17 Aug 2009 12:33:40 +0000 http://blog.elitemanda.com/archives/31#comment-3368 Good points on avoiding the "tax bite". A further complication here in the UK is that depending on how it is structured the Vendors may have to take a gamble as how much the earnout will pay out - and pay the tax on that sum up front. Alternatively they can pay the tax when they make the earn out - but this may involve interest payments on overdue sums, and worse still in the current climate the tax regime may have hardened by the time the liability is calculated. So what suits the acquiror may prove to be quite untenable for the vendors from a tax standpoint. http://lake.blogs.com Good points on avoiding the “tax bite”. A further complication here in the UK is that depending on how it is structured the Vendors may have to take a gamble as how much the earnout will pay out - and pay the tax on that sum up front. Alternatively they can pay the tax when they make the earn out - but this may involve interest payments on overdue sums, and worse still in the current climate the tax regime may have hardened by the time the liability is calculated. So what suits the acquiror may prove to be quite untenable for the vendors from a tax standpoint.

http://lake.blogs.com

]]> Comment on Avoiding Value Killers In A Business Sale by Scott http://blog.elitemanda.com/archives/25#comment-543 Scott Thu, 07 Aug 2008 18:16:48 +0000 http://blog.elitemanda.com/archives/25#comment-543 Very good article. Another thing that I've found that can reduce the value of a business during the sale process is time. Time is relevant in a few separate ways. The longer the business is for sale, the greater the chance that information is going to leak out to customers, suppliers, partners, or employees. 9 times out of 10, the few the people that know about the transaction, the better. The second way that time is a factor is that generally speaking, the longer someone waits to sell their business, the less it is going to be worth. If you compare apples to apples, an identical business is going to be worth less in 4 years than it is today. The reason being that there are more sellers coming on the market and less buyers, supply and demand. Very good article. Another thing that I’ve found that can reduce the value of a business during the sale process is time. Time is relevant in a few separate ways. The longer the business is for sale, the greater the chance that information is going to leak out to customers, suppliers, partners, or employees. 9 times out of 10, the few the people that know about the transaction, the better. The second way that time is a factor is that generally speaking, the longer someone waits to sell their business, the less it is going to be worth. If you compare apples to apples, an identical business is going to be worth less in 4 years than it is today. The reason being that there are more sellers coming on the market and less buyers, supply and demand.

]]> Comment on Structuring An Exit by Jeff Kornfeld http://blog.elitemanda.com/archives/10#comment-99 Jeff Kornfeld Thu, 17 Jan 2008 22:15:53 +0000 http://blog.elitemanda.com/archives/10#comment-99 Thanks for this information. Naturally, each strategy has some benefits and disadvantages that are not outlined here. While a 1031 exchange is a powerful tool to assist in wealth preservation, it is not always suitable as people age. According to the experts, 15 - 20 % of all exchanges fail annually and this represents ~ $30 Billion dollars in busted exchanges. I thought you and your readers might like to know there is another way to defer your capital gains taxes (and depreciation recapture tax) without buying replacement property. Please visit http://www.selltaxdeferred.com to learn more. Thanks for this information. Naturally, each strategy has some benefits and disadvantages that are not outlined here.

While a 1031 exchange is a powerful tool to assist in wealth preservation, it is not always suitable as people age. According to the experts, 15 - 20 % of all exchanges fail annually and this represents ~ $30 Billion dollars in busted exchanges.

I thought you and your readers might like to know there is another way to defer your capital gains taxes (and depreciation recapture tax) without buying replacement property.

Please visit http://www.selltaxdeferred.com to learn more.

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