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Current Contents:

--Hear Talk Radio Interview with Kathryne Pusch, Atlanta Business Broker, ConsultKAP (click link)

Watch    SHINE: The Entrepreneur's Journey, A short film by Dan McComb & Ben Medina, produced by Biznik.

-How to find the right business broker for you  READ  THIS ARTICLE

-- Tips on Selling Your Business from the Better Business Bureau-- Read this Article

--Restrictive Covenants Update-- READ  THIS ARTICLE

-- Who Needs a Buy-Sell Agreement?--READ  THIS ARTICLE

-- The High Cost of Inaction!  Understand funding  a Buy-Sell Agreement  READ  THIS ARTICLE

--Selling a small business is tough--Case Study-- READ  THIS   

-Georgia still among fastest growing states (Scroll down) 

-Building an Entrepreneurial Legacy-Actual Case  Read this Article

---You had your business appraised, now what? READ  THIS ARTICLE Contact us for a Business Valuation Today

-- Valuations for SBA 7(a) Loans READ  THIS ARTICLE

-- Business Fraud Alert READ  THIS ARTICLE

-- Do We Always Have to Pay Those Capital Gains Taxes? READ  THIS ARTICLE

-Whom do business leaders really trust? (Scroll down) 

_ SBA Help for Women Business Owners (Scroll Down) 

-Businesses Looking to Cash Out Sometimes Need to Step in With a Loan as Credit Crunch Continues to Stymie DealsREAD THIS ARTICLE

-Fund YOUR Business with YOUR Money --Not Impossible (Scroll down) 

--The Seller Finance Solution READ THIS ARTICLE

-- Small Business Tax Advice from a Former IRS Auditor(Scroll down) 

-- LLC or S-Corporation?READ THIS ARTICLE  

--  The Truth About Powers of Attorney-- Read this Article

--Cash-Out Now or §1031 Exchange READ  THIS ARTICLE


-Surprise. . . this business is Yours. READ THIS ARTICLE

-Training & Business Development: Slippage  (Scroll down) 

-Business Due Diligence Process   - Article and Two Checklists  READ THIS ARTICLE

-ANSWERS from the Experts!!
Question: Can I sell a business NAME as opposed to assets?(Scroll down) 

-Finding the perfect U.S. retirement tax haven READ THIS ARTICLE

Atlanta Business Chronicle -

How to find the right business broker for you .

Tom Barry

Contributing writer

When Trisha and Larry Scheffler decided to sell their small manufacturing company in Jasper, Ga. -- one they had founded 10 years before -- their first instinct was to sell it themselves. Why pay a hefty commission to a business broker? "Things didn't go well," Trisha said. "We didn't know what steps to take or when to take them. When were we supposed to show a prospective buyer our financials? Who was really serious about buying our business, and who was a competitor [trolling for information] to use against us?"  

The Schefflers eventually hired a business broker, (Kathryne Pusch of ConsultKAP, Inc.) selling their 15-employee company to a larger competitor. Trisha said she believed they made more money that way than they would have flying solo.  "Even more than that, selling a business is a very stressful process," she said. "A business is like a member of your family. You want it to grow and thrive. It was good just to have someone to answer our questions."  

Increasingly, business owners are selling their business through a broker, a formal middleman who did not exist in Atlanta until roughly a quarter-century ago. Previously, someone selling a business had only his attorney, accountant or banker to call on for advice, not that this doesn't suffice still for many owners.  READ  THIS ARTICLE

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In the News . . 

Georgia still among fastest growing states

Atlanta Business Chronicle

The state of Georgia continues to rank among the fastest growing in the nation, according to new figures released Monday by the U.S. Census Bureau.

New statistics show Georgia was apparently on the minds of 162,447 people who decided to move to the Peach State between, July 1, 2007 and July 1, 2008, according to the U.S. Census Bureau.

The state added the fourth most of any in the union. Its growth rate of 1.7 percent was ninth nationally. Since 2000, Georgia has added an estimated 1.5 million residents.

Texas added the most people –483,542 – while Utah had the fastest growth rate (2.5 percent).

The only states to lose population were Michigan, which declined 0.5 percent or by 46,000 people, and Rhode Island, which saw its population fall 0.2 percent or by 2,000 residents.

Three of the 10 fastest growing states – Georgia, North Carolina and South Carolina — are from the Southeast. Six Rocky Mountain states – Arizona, Colorado, Idaho, Nevada, Utah and Wyoming – also made the top 10.

In the News . . 

Selling a small business is tough


The Atlanta Journal-Constitution

Sunday, June 14, 2009

Alex Volpe was returning to the corporate world and a demanding new job at Georgia-Pacific.

His wife, Deb, hoped to stay home with their two young children.

For the couple, that meant one thing: they’d have to sell the family business, which required time they no longer had.    READ the Rest of this ARTICLE

In the News . . 

How Do Small Businesses "Fight Back" in this Economy?

Like many, the client company was having a real crisis.  Its  CEO was witnessing many friends and colleagues filing for bankruptcy. Her banker, CPA, and attorney told her to close her doors.  Over 50% of the companies in her industry have gone out of business since 2002, and her company faced a variety of problems across the board:  

Losing key customers.  Facing tight cash flow.    Low employee morale. Inconsistent productivity. Increasing customer demands.  Competition from low labor rate countries.  Rising raw material prices.  

Seemingly attacked from all sides, a determined CEO was seriously considering closing down after 40 years in business—but she decided to fight back! 

How our Strategic Partner, Cycle of Success Institute, stepped in to change the course of the future for this company and several others  in these REAL LIFE CASE STUDIES. READ  the rest of this ARTICLE

In the News . . .

Building an Entrepreneurial Legacy

Steve Marsden of Alpharetta, GA had a dream for his family.  He wanted to build a Marsden Family Portfolio of small businesses and create an entrepreneurial legacy.  He imagined his “boys” working together productively, being their own bosses, sharing their passions for business, and supporting their families, long after he was gone. When Steve first met Kathryne Pusch, of ConsultKAP, Inc. Business Brokers in late 2002,  he was in transition out of his long time corporate career with IBM. Steve heard Kathryne speak on the topic “So, You Think You Want to Buy a Business?” at an entrepreneurial seminar, and he said “Yes, I Do.”

Read the rest of this Article

In the News . . . .

Do We Always Have to Pay Those Capital Gains Taxes? 

"How to eliminate capital gains tax on Real Estate & Goodwill"

 Case Study-- Highlights:
Elimination Tax on the Goodwill allocation of a business sale.
Alternative 1031-Exchange strategies when real estate is a component of the business.
Avoid depreciation recapture


In the News . . . .

Who do business leaders really trust?

Those studied preferred Trustworthy Partners 86% of the time

Cathleen McGrath and Deone Zell,   

Peter MacDiarmid / REUTERS

What creates trust? Research indicates that people look for three essential things: ability, benevolence and integrity. In our research, we examined the relationship between support-seeking behaviour and these traits by studying the support networks of 50 senior executives at a Fortune 50 technology firm and developed eight profiles of executives' contacts. We then looked at how the senior executives looked to these profiled groups in different ways and divided forms of support into four categories: raw information, actionable advice, strategic or political help, and emotional support. We discovered that the leaders rely on different types of trust, depending on the kind of support they want.

To elaborate, the four groups of support entail:

* First, raw information involves facts and figures like budgetary numbers, meeting dates, competitors' activities or inventory levels. It's the most explicit form of assistance and one of the easiest to obtain through technological means.

* Second, actionable advice means recommendations or suggestions aimed at accomplishing something. This type of advice has low emotional demands, but can be intellectually complex. It involves not just data but also draws on a person's experience.

* Third, emotional support involves someone wanting help in working through difficult issues.

* And, finally, strategic or political help is the most complicated, and requires high emotional and intellectual demands.

How do you best enlist support? When do you decide to try to diffuse tension among colleagues? Strategic help gets into questions of this nature.

We broke down the executives' network contact profiles into eight categories. "Harsh Truthtellers" are honest, regardless of whether the truth is painful. "Moral Compasses" have an unwavering sense of right and wrong. "Loyal Supporters" align their values closely with those who are seeking support. They are sympathetic, even if not experts in the relevant material. "Star Players" are experts in their fields, but not necessarily empathic. "Average Joes" have moderate levels of ability, benevolence and integrity. "Dealmakers" get things done. They want to help and can, but sometimes handle issues in ways that clash with the support seeker's values. "Cheerleaders" provide unconditional support, but may not be the most capable colleagues. "Trustworthy Partners" are capable, display high integrity and have the support-seeker's best interests at heart.

We gathered data from 50 of a Fortune 50 organization's leaders -- vice presidents, directors, general managers and other executives -- who were part of a senior leadership development program. Those surveyed reported on 661 contacts who they trusted enough to go to for personal support.

Those studied preferred Trustworthy Partners 86% of the time when they were looking for actionable advice and 57% of the time when looking for strategic or political help. They also looked often to the Harsh Truthtellers, despite the fact that people in this category display little benevolence. The executives looked to the Harsh Truthtellers 73% of the time when looking for actionable advice and 45% of the time when looking for strategic or political help. Those involved in the survey next turned to the Loyal Supporters and Moral Compasses for these types of support.

When the executives were looking for emotional support, they sought out those who displayed integrity and benevolence - and were less concerned with seeking out those who were most skilled. This meant that they turned to Loyal Supporters 78% of the time. And when the executives were looking for raw information, they looked to the Average Joes most often -- again, 78% of the time.

Finally, it seems that high integrity is what support-seekers look for in their networks. When executives perceived that someone among their support group had high integrity, they would go to that person for support that had to do with either intellectual or emotional concerns.

Also of note: While executives sought Trustworthy Partners and Harsh Truthtellers most often, and then looked to Loyal Supporters and Moral Compasses, they didn't generally turn to Star Players. Ability, it seems, is not enough. Further, executives almost never turned to Dealmakers or Cheerleaders, probably because they don't display as much integrity.

This article is adapted from "Profiles of Trust: Who to Turn to, and for What," by Cathleen McGrath and Deone Zell, which appeared in the Winter 2009 issue of MIT Sloan Management Review. The complete article is available here.

Copyright Massachusetts Institute of Technology, 2009. All rights reserved.

In the News . . . .

Thursday, October 15, 2009, 10:25am EDT

SBA offers help to women business owners

Atlanta Business Chronicle

Women small businesses owners will be able to use a new online training course to learn how to identify and take advantage of federal contracting opportunities.

The course being offered by the Small Business Administration is part of a government-wide initiative to promote opportunities for women-owned businesses in the area of government contracting.

SBA noted in a news release that it is committed to ensuring that women-owned businesses receive at least 5 percent of federal contracts.

“Federal contracts can provide unique opportunities for women entrepreneurs and small business owners to grow their businesses and create jobs, particularly during these tough economic times,” SBA Administrator Karen Mills said in a news release.

The course, which is designed to help women entrepreneurs learn about the federal procurement process and to prepare them to compete for contracting opportunities can be accessed at


In the News . . . .

Businesses Looking to Cash Out Sometimes Need to Step in With a Loan as Credit Crunch Continues to Stymie Deals


Wall Street Journal

November 13, 2008   

For small companies looking to cash out, this may be an ideal time -- if they are willing to give sellers a financial hand.

The reason is that fewer businesses are on the block these days as owners fret over the ability to live off their proceeds during the economic and market downturn. A smaller supply of sellers means those companies that show stability, profits and steady cash flow can command a premium price.

But there's a catch: Buyers are generally finding greater difficulty getting commercial loans from banks. Loans backed by the Small Business Administration have dropped off precipitously in recent months. Even private equity firms -- long known for taking a chance on scrappy young companies with high growth potential -- are acting more conservative.

Christina and David Sloan, former co-owners of Li'l Guy Foods, at the company's production facility

The upshot is that some businesses are finding they also need to provide some of the financing themselves in order to get a deal done.

Seller financing "is almost a mandatory piece of the deal," says Domenic Rinaldi, owner and managing partner of Chicagoland Sunbelt, a Chicago-based broker that helps people buy and sell businesses. "When we bring deals to the banks, they want to know that the seller will be in for some portion."


In the News . . . 

Fund Your Business or Franchise with Your IRA

(ARA) - Aaaah. Life without a boss or the fear of firings or layoffs. A life in which you are free to think outside the box and direct your own employment destiny. A familiar dream, right? But how many of us, when talking about our dream of self-employment, begin our sentences with, "If only I had the money, I would?"

Well, now there's a way you can get your hands on the money that will allow you to live out your dream of business ownership. And the amazing thing is -- you probably already have that money in your own possession.

Do you have an IRA, 401(k), Keogh or other retirement plan? If so, you're sitting on a potential goldmine, because those funds can be used right now before retirement age to either buy a business outright or to leverage a loan that will let you secure the enterprise of your dreams. And you can tap into those funds without incurring additional taxes or early withdrawal penalties.

By using a structure similar to that of a self-directed IRA, your purchase of a business or franchise is considered by the IRS and Department of Labor (DOL) as an investment into your business made on behalf of your retirement account. Under this structure, your business profits are realized tax-deferred inside your retirement account or are reinvested back into your business. It's an ideal way to launch your business with lower overhead while building up your retirement account.

Don't have enough money in your retirement account to purchase the whole kit and caboodle? Then use what you do have to secure a good loan and reduce your overall debt.

The more you can put into a down payment for an SBA or other loan, the more favorably the lending institution will look on your request.  As a general rule, borrowers will need 20 percent or more down, regardless of whether they're buying a new business or an existing one.

The same account structure that allows for IRA monies to be used as loan leverage also allows for multiparty purchases. So you're free to combine your IRA money with the retirement funds of a spouse or partner.

Low- and no-debt financing strategies require careful structuring of various accounts and entities, so they're not for the do-it-yourselfer. Fortunately, specialized financial services companies set up these types of accounts, so you don't have to.  By combining your retirement account money or your home's appreciated value with your entrepreneurial zeal, you may discover the perfect recipe for business success!  

Fund Your Business with YOUR Money

Article Courtesy our Affiliate

In the News . . . .

The Seller Finance Solution

Seller financing can be a great way to get a business sold without slashing the price.   Some sellers are hesitant because they need a large lump sum of cash VS installment payments. . . read on to learn more about how to accommodate this common need.

By recognizing the millions of people who can't get traditional financing as potential buyers, resourceful sellers (and their agents) can minimize their time investment in getting a property sold. Even better, sellers who offer financing can usually get a higher asking price for their property, even in the slowest markets. Clearly this is a win-win situation.

Most sellers never consider financing the buyer directly because they are not aware of the benefits or don't fully understand how creating a note works, and what can be done if the installments will just not work for them.   Let's take a closer look at the advantages of owner/seller financing, as well as the option to sell that note.   READ  THE REST OF THIS ARTICLE

Article courtesy our Strategic Partner, Pierre Stokes

In the News . . . .

Tax Advice from a Former IRS Auditor

Small businesses face a relatively higher risk of audits than individuals. Here are some pitfalls to avoid to make sure your returns are accurate

Everyone wants to maximize their tax deductions and reduce what they owe the government. But remember: If you report income as a small business owner, you face a higher risk of getting audited than individuals with just payroll or investment income. That's because it's much easier for small business owners to understate their income or overstate their write-offs than it is for individual employees, who have their wages reported by their employer. Indeed, the IRS devotes the greatest share of its enforcement budget—41 percent in 2006—toward small businesses. The agency in recent years has tried to increase compliance through education and enforcement. The Schedule C, which sole proprietors use to report income, is the single most audited business form, says Jeff Collins, a tax attorney and former IRS auditor in Schaumburg, Ill.

Small business owners can save themselves grief by avoiding common tax slip-ups. One big trap some fall into: failing to pay payroll taxes. These contributions, which include the employer's half of Social Security and Medicare taxes, are due monthly, but business owners with cash-flow problems sometimes fail to pay them because they need to cover other fixed costs like wages and rent first, says Collins. Companies can avoid that temptation by hiring a payroll service to make the tax contributions along with each payday.

Independent Contractors

Some small business owners try to avoid payroll taxes entirely by classifying workers as independent contractors. That's legitimate if workers truly are independent—the distinction has less to do with the hours they work than it does with the degree of control the business owner has over them. Misclassifying workers can come back to bite businesses if the IRS determines the company should have been withholding taxes and contributing the employer's share of payroll taxes. "If you have a payroll of $100,000 and you did that, well now you've got a $15,000 bill," Collins says.

Businesses that pay workers and vendors in cash are also at risk in an audit. If a company doesn't have a paper trail to back up those costs, the deductions will be lost. Collins says this is often an issue among first-generation immigrant business owners or those who pay undocumented workers with cash. Such practices can put employees at risk as well. "If those expenses are deducted and you can't show documentation, you also jeopardize the employees. Then they become subject to the willful failure to file taxes," Collins says. Those who don't have records might be tempted to tell an auditor that they were lost in a flood or fire. But Collins says in that case, they should be prepared to produce an insurance claim—otherwise the auditor has no evidence to show that there was any damage to records.

But even though small businesses face a relatively higher risk of tax audits, Collins says business owners shouldn't worry—as long as their tax returns accurately reflect their business records, and their deductions are reasonable. And businesses shouldn't be afraid to take a legitimate deduction for fear of explaining it to an auditor. "Who cares if it's a red flag?" says Collins. "Bring the audit on."

Tozzi covers small business for

In the News . . . 

One of the questions I get most is should a buyer form an LLC or an S-Corporation?

Most of the time people form an LLC without getting adequate legal and tax advice because
 someone told them “ that is the best way to do it.

There is no standard answer to this question. Each individual situation should be analyzed for the best choice of entity. A buyer should always seek legal counsel regarding liability and business reasons for the choice of entity.

Here are a few of the main differences between the two in layman

Article courtesy our Strategic Partner, Greg DeFoor
In the News . . . 

Cash-Out Now or §1031 Exchange:

A Look at the Potential Effects of Higher Capital Gain Rates on the Effectiveness of a §1031 Exchange 

By: John Harman– Our strategic partner with The Blue Oak Group, LLC

 With the Change Administration set to take the Executive Stage this month, the eyes of investors and their trusted advisors have focused on what effects the incoming president will have on the tax codes that so many have benefited from in the past and the rates of which determine the impact of those codes. 

 As a core business market, Blue Oak has heard many investors and tax professionals say that since it is clear that the Obama administration intends on increasing the capital gains rates, now is the time to sell investment real estate, elect not to do a §1031 tax-deferred exchange and “cash-out” while rates are low. But is that the right choice?   . . . . . .   READ THE REST OF THIS ARTICLE

In the News . . . .


contributed by Jim West, Vice President of Dynasty Capital Advisors (Article Courtesy our Affiliate)

The stock market is crashing. Government bailouts are rampant. The political climate
is uncertain. Credit has all but disappeared for ready buyers if you can even find
one. Yet, your dreams of retirement remain. What can you do? There is an answer
that you may have overlooked. By understanding the power of an ESOP you could be
 well on your way to your retirement in the next 90 days. READ THE REST OF THIS ARTICLE

For more information about how an ESOP could be the solution to your exit strategy,
e-mail us today. We will facilitate initial information collection and put you in touch with our ESOP specialists. 

e-mail us

In the News . . .

Friday, October 5, 2007  Surprise. . . this business is Yours. (An ESOP Case Story)

Atlanta Business Chronicle - by Justin Rubner, Staff Writer

Nearing retirement, 68-year-old entrepreneur John Farra had a decision to make about
his Norcross-based printing supply company. Sell the quiet, but lucrative, small
 business empire he had created -- or hatch a surprise twist for what might have
 been an unassuming legacy.

On Aug. 22, Farra, CEO of Laser Supply & Service Inc., treated his 13 employees
to dinner and delivered the big news -- he was retiring. Furthermore, he said, the
company no longer belonged to him. Visions of layoffs filled the room.

Instead, he explained, the company had been sold and now belonged to new owners.

It belongs to you, he told his workers.



In the News . . .

Training & Business Development: Slippage & Real Estate

By Kathryne Anne Pusch, ASR  

RISMEDIA, July 18, 2007 —I read a lot of Stephen King.  Many of his stories involve people crossing some invisible boundary lines into the realm of evil.  King uses a term “slippage” to describe the events, behavior, and conditions surrounding a gradual, sometimes nearly imperceptible (except in retrospect) decline or crossing over to the “dark side.”  As you read the story, you start to get “the creeps,” the feeling that something wicked this way comes.  I think slippage also applies to our integrity in our business dealings as well.   

We have certainly seen a great deal of slippage in our world in recent years.  The business world is tough and extremely competitive these days. Some people might be feeling that it would be easy to lower their own standards of honesty and ethics, and rationalize that they are still “better” than a lot of other people we have read about and seen on the daily TV news.  Allowing yourself to be weak in your own values may allow others to misguide you into behavior that will later strike you as very poor judgment.  One poor decision has a way of leading to more bad decisions, often to cover up the first one.  This creeping decline in values is slippage, and is accompanied by denial which allows people to convince themselves it is OK to behave this way.  

In fact, it is not possible to keep your positive self image and integrity while lowering your own standards to the level of mediocrity or even worse.  The late Dr. Norman Vincent Peale was a prolific writer and a wise man. He had a “test” for integrity.  When evaluating any given situation and choices for behavior, he suggests that we ask ourselves:

  1. Is it legal and in line with the organization’s policies?
  2. Is it fair to all concerned—both short & long term?
  3. How will I feel about myself in the end?

 Being dishonest saps energy, adds to the “bad stress” in our lives, and damages personal and professional relationships. In our business, you could be at risk for loss of license, fines, or legal sanctions.  Who needs that? If you or someone close to you seems to be succumbing to slippage, take action (before you wind up in a Stephen King story.) 

   q      Get in the habit of constant evaluation using the three-question test 

q      Practice encouraging and supporting the best behavior in others

q      Live up to your commitments, taking responsibility for your own actions and expecting others to do the same

q      Communicate truthfully and clearly, without casting aspersions or shifting blame

 NAR surveys confirm that your prospective clients are looking for Brokers and Agents that demonstrate honesty and integrity, so you will see your business blossom and referrals increase.   As a bonus, you will feel good about yourself and be healthier, happier, and more confident!  You deserve it.

About the Author:
Kathryne Anne Pusch is president & broker of ConsultKAP, Inc. She is a Licensed RE Instructor in Georgia You can contact Kathryne at

RISMedia welcomes your questions and comments. Send your e-mail to:

 In the News . . .


      Business Due Diligence Process               

by Kathryne A. Pusch, ConsultKAP, Inc.

 Published on           March, 2007  

Due Diligence Considerations, Process & Timing 

Buyer Due Diligence (DD) on a business (going concern) acquisition is the process of verifying that a prospective buyer is purchasing what he THINKS he is purchasing, and that the information he has been provided thus far by brokers and sellers is accurate within a reasonable degree of tolerance to the buyer. Due to serious concerns about confidentiality, disruption of current and future business, and time and expense, in depth DD is generally conducted after a binding agreement is in place and earnest money has been provided. Earnest money is refunded only if specific contingencies cited in the agreement are not met, (such as financing) or if due diligence uncovers material facts in dispute with the prior representations on which an Offer, or at least an LOI (letter of intent) was based.

Some degree of exploration and analysis of the business, its viability, its fit with the buyer prospect’s experience, skills, and financial resources should begin the minute a buyer starts considering the opportunity. No one in the process wants to waste time, money and energy on a deal that cannot or will not happen. Many times the exploration process will not get past the first look at the offering prospectus or first meeting, as one side or the other recognizes this deal is not mutually beneficial. If there are brokers or alternative advisors representing the buyer and seller, he or she will understand the buyer’s need for information to make a decision, and also the need to respect the seller’s confidentiality. So, the process will go step by step with additional information provided as a buyer is apparently more qualified and serious. This article focuses on the DD that will occur when a buyer gets past the initial stages and has come to some terms with the seller.  

Once there is an agreement in place, DD is a mandatory step in purchasing any business. Put simply, a buyer must do his homework, and know precisely what he is buying. This may be relatively painless with an honest seller and well organized business, presented by a professional broker. But, it can be a trying process, especially if a business is not well organized, the seller has something to hide, and/or a buyer is not both reasonable and prepared for the investigation. Buyers are encouraged to engage the assistance of a CPA with some small business experience to make the process far more efficient and productive. In depth due diligence is not a ‘free look period’ in which a buyer can decide if he likes or does not like “anything at all” about the business. Extensive DD simply cannot occur with every prospect on a business. The seller cannot be asked to commit the kind of time and energy, and expense for advisors, potential exposure to employees, vendors and customers required for due diligence of his ongoing business unless a buyer is committed to the purchase. Measurable contingencies and due diligence requests should be precisely listed at the outset of the process, often in the LOI or Offer document, or through the provision of a DD list.
READ THIS ARTICLE & See Checklists


Fund Your Business with YOUR Money     

In the News . . .

Kathryne Pusch, Author
Buyer’s Due Diligence Checklist #1(asset sale)

READ THE ARTICLE & See Checklists

This is just a basic list with those items most commonly done. Buyer is responsible for assuring their own due diligence is done to their satisfaction, and at their expense. Broker is not able to give legal or accounting advice.

Due Diligence Checklist # 2 (More Depth)

Following is a common list of the information needed for a more thorough Due Diligence. Some of the information may not be applicable to a specific business. Some of the information will be obtained through examination of the data on-site, through the business accountant, or it could be provided directly by the seller via interview or written response. Buyers should always take into consideration the capabilities and systems of the business and its owners when requesting information.

READ THE ARTICLE & See Checklists

This is just a basic list with those items most commonly done. Buyer is responsible for assuring their own due diligence is done to their satisfaction, and at their expense. Broker is not able to give legal or accounting advice.

In the News . . .


Learn about everything going on in the world of business through the BizRead Newsletter. Have a question that only the best in the business can answer? Send it to our members We've got the best sponsors in the world. Learn who they are. Articles from some of the leading experts in business. Didn't find what you were looking for in our current article list? Then look at the good old stuff!

  ANSWERS from the Experts!!

Question: Can I sell a business NAME as opposed to assets? Hi, I own a tour company. The customer comes to me via Internet ads, print ads, brochure racks. We will do about 380,000.00 gross and $150,000 net this year, and have for several years. My situation is unique. I run tours on a piece of property, it's privately owned and we are losing the lease. Don't want to stay in business, but we know the phone will continue ringing, so were wondering: If someone wanted to get in the same tour business we're in, and had some property on which to do the tours, would selling my company, which is really just a name and good will, referral and repeat business and new business , be of interest to him, and how to arrive at a price/value?

Answer #1: The business NAME is, in fact, one of the many intangible assets that someone buys when they buy a business.  A large part of the business goodwill is vested in the name, as this is how customers identify the company providing them with goods and services that the business provides.  Many businesses have little, or virtually no, tangible assets, so the greatest portion of the business value is attributable to the goodwill, a large portion of which IS the business name, along with the customer and vendor lists.

You could sell just the business name, but most buyers would also want the customer and vendor lists, unless you are planning to license your name or set up franchises.  It sounds to me like the specific location is not relevant, so long as it is close enough to be the your market area.. The value will be dependent upon what the name can bring to a buyer in terms of revenue and profits.  I am unsure if you are saying that the PIECE of property is, in fact, the ATTRACTION site.  If so, it will really not be the same business if you lose the attraction, so this will heavily impact the perceived value to any buyer.

Kathryne Pusch
BBN Atlanta, ConsultKAP, Inc.


In the News . . 

Finding the perfect U.S.  retirement tax haven By  •

It seems like it would be easy to find a tax-friendly place to while away your golden years. Nine states don't have an income tax. Five don't levy any sales tax. By this measure, a perfect state to retire to is Alaska , since it falls into both groups. There's just that minor issue of the weather.

Think a little snow -- OK, maybe a lot -- is a fair trade to avoid state taxation? Don't pack your parka just yet. Alaska isn't totally tax-free.

Some Alaskan municipalities do charge local sales taxes. Some cities and boroughs (roughly equivalent to counties) also collect property taxes, although the first $150,000 of assessed value is exempt if it's owned by residents 65 or older. And for the time being, the state still has an estate tax, something to think about if you're worried about what you'll leave the grandkids.

The Land of the Midnight Sun is a prime example of the complexities you could face when looking for a domestic retirement spot on the basis of tax considerations. You've got to sort through 50 states and the District of Columbia , each with its own set of tax rules, not to mention the assortment of local taxing jurisdictions they contain.

Even then, if you simply use tax rates as the overriding factor in deciding where in the United States to retire, you could make a big mistake.




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