Working capital is sometimes overlooked in determining the value of a business. But it can have a material effect on value, so it’s important to remember. A business’s working capital equals the difference between its current assets and current liabilities. When the value of a business is determined under either the income or the market approach,…
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Price or Value: Which Is Correct?
When a business is sold, it often sells for more (or less) than the appraised value. This may come as a surprise to laypeople, but valuators understand that there are many valid reasons that “price” and “value” may differ. Businesses that understand this subtlety are better positioned to make informed decisions. Price vs. Value Price is specific to…
10 Tax Elections to Save Money on Your 2019 Return
2020 is a presidential election year. You’ll have an opportunity to cast a vote for your favored presidential candidate in November, but you can make several other key “elections” this year when filing your 2019 tax return. These elections may be influenced by the Tax Cuts and Jobs Act (TCJA), as well as the year-end spending…