Acquiring a business is a big deal, and doing so in the best way possible will take a few considerations. You can either obtain a small business as an asset sale or stock sale, with no in-between options, so depending on your company structure and goals, one acquisition method might be better than the other.Asset sales are best for small business acquisitions from a buyer's point of view due to favorable tax implications, fewer liabilities, and more freedom in structuring the new company. However, buying a small business can sometimes work better with a stock
Suppose you, as an investor, are interested in acquiring a small business. You will undoubtedly face certain challenges and risks; that’s a given. But some businesses present more risk than is necessary to take.The correlation between revenue and customer contribution to revenue and profit is high on the list of possible risks. It would be best if you delved deeper to make an informed decision.It’s risky buying a small business with customer concentration. If 10% of the business’ income comes from 1 client or 25% from 2 or 3 clients, losing these clients could be
Being direct… Who doesn’t want a high cashflow business that is easy to operate? I’ve got both hands up. I’m going to share with you some business models I’ve ran across that are easy to operate’. This is going to come from the perspective of; acquiring a business. I prefer to acquire established businesses rather than start them. About that ‘Easy To Operate’ Of course I must state the obvious, ‘easy to operate’ is subjective. An easy to operate business for myself might be an Ecommerce digital business where I don’t have to entertain clients
If you own a small business, there might be times when cash flow is a problem, or you want to expand your business but need more funds to do so. In cases like these, one option for financing is asset-based lending. But what is asset-based lending, and how does it work? Asset-based lending is a form of credit in which one or more of a company's assets, such as accounts receivable, inventory, equipment, and real estate, are used as collateral. The lender may seize these assets if the business cannot repay the installments anymore and
As an investor, you have lots of choices when it comes to spending your money. After all, there are lots of ways to expand and diversify your portfolio. One way that has gained significant attention in recent years is that of a farmland REIT. But what exactly is a REIT? And why should you consider it as a viable investment opportunity in 2022? Let’s find out. What is a REIT? A REIT is a Real Estate Investment Trust Fund. It’s a vehicle that helps people invest in farmland and is an attractive option. After all,
20%. 40%. 60%. More? Allocation of your portfolio to international stocks and be a tough decision make. Even financial professionals don't have a consensus on what an investors allocation to International stock should be. Big Investors That Like US Only Stocks 2 big name investors make it clear that they don't like international stocks and advise investors to invest only in US equities. The first is Jack Bogle, the founder of Vanguard. He expressed "You have an international portfolio, why do you want a larger one?" referencing the fact that the S&P 500 derives
So you want to beat inflation with investments? You’re not alone has we’re in a period where the Consumer Price Index (CPI) is consistently reaching 40 year highs! And cash is a losing game, along with (currently) bonds, and the S&P 500, both of which are down about 10% as of writing this on March 22nd 2022. Here we’ll look at what asset classes have done well, from some charts and data! I've also done a video on this topic covering much of what is in this blog post if you would rather watch it!
A portfolio that has only drawn down about 13% and still has an annual growth rate of 8.25%... That’s the historical performance of the Permanent Portfolio. Sounds great right?!Here we’ll take a more indepth look at the Permanent Portfolio. I recently did a video on the topic which you can see here. I follow the same flow on the topic but give details a little differently.Origin of The Permanent PortfolioHarry Browne Created the concept of the Permanent Portfolio in the 80s and publicized it in a book he published in 2001 called Fail-Safe Investing. He also created
Margin loans kind of get a bad wrap... But I disagree. Margin loans can be a great financial tool. In this video I explain how I use them and how they can help minimize your tax burden! TBTW; Margin loans provide access to capital at very low interest rates The lowest rates are at Interactive Brokers. M1 Finance Pro also has great rates and is a much more user friendly platform. Using a margin loan to access capital is cheaper than realizing gains and paying taxes. Generally keeping your money in the market is positive
The All Weather Portfolio coined by the hedge fund master is supposed to be resilient in all market conditions. I wanted to take a look at how the All Weather Portfolio is doing in this weird economic climate we fell into in the end of 2021, and has started 2022 of rocky. TLDR; too long didn't read (or watch).... The All Weather Portfolio is comprised of 5 asset classes; long term treasuries (40%), US equities (30%), intermediate treasuries (15), gold (7.5%), commodities (7.55). Ray Dalio sees this allocation has best suited to perform in
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