If you are selling a business, the buyer may want to pay part of the price through an earnout provision. This is a contractual arrangement in which the seller receives additional payment in the future if certain financial goals are met. In other words, part of the price is contingent on the performance of the…
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Long-Term Growth: Why It’s So Important to Get It Right
When appraisers select from the menu of appraisal techniques, the income approach is a popular choice. This technique derives value by converting anticipated economic benefits into their net present value. Long-term sustainable growth is a key ingredient. Capitalization of Earnings Method Here’s the “recipe” for valuing a business under the income approach, when the subject company’s earnings…
7 Year-End Tax Planning Moves for Small Businesses
Business owners still have time to significantly reduce their tax bills for 2018. Here are seven year-end moves to consider, taking into account changes included in the Tax Cuts and Jobs Act (TCJA). 1. Claim 100% Bonus Depreciation for Asset Additions Thanks to the TCJA, 100% first-year bonus depreciation is available for qualified new and…