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,…

There are three approaches to valuing a business: the cost, market and income approaches. In this article, we focus on the market approach, which the International Glossary of Business Valuation Terms defines as: A general way of determining a value indication of a business, business ownership interest, security, or intangible asset by using one or more methods that…

The following table provides some important federal tax information for 2022, as compared with 2021. Some of the dollar amounts are unchanged and some changed only slightly due to inflation. Social Security/ Medicare 2022 2021 Social Security Tax Wage Base $147,000 $142,800 Medicare Tax Wage Base No limit No limit Employee portion of Social Security 6.2%…