Selling a business is a significant milestone in an entrepreneur’s journey. It can bring financial rewards, opportunities for new ventures, and a chance to realize the fruits of your hard work. However, amidst the complexities of selling a business, one crucial aspect often raises questions: What happens to your cash reserves? Cash reserves create a tricky conundrum in many business sales.  Is cash included?  How much cash is included?  How it calculated?  Is a valuation multiple applied?  In this post, we’ll explore the tricky aspect of cash reserves when selling your business and provide valuable

Selling a business can be an exciting and lucrative endeavor. However, amid the excitement of a successful sale, it’s crucial not to overlook one significant aspect: capital gains tax. Understanding and effectively managing capital gains tax is essential for preserving the proceeds of your business sale. In this comprehensive guide, we’ll demystify capital gains tax and provide you with valuable tips to minimize your tax liability. What is Capital Gains Tax? Before delving into the specifics of capital gains tax in the context of selling a business, let’s start with the basics. Capital gains tax

In the world of business acquisitions, opportunities abound for buyers and sellers alike. But what if you don't have the entire purchase price upfront or want to sweeten the deal to attract more potential buyers? This is where seller financing comes into play. Seller financing, also known as owner financing or seller carryback, is a financing arrangement where the business seller provides a loan to the buyer to cover part or all of the purchase price. It's a powerful tool that can benefit both parties in a business sale. In this comprehensive guide, we'll delve

Small businesses are often like a tight knit ‘clique’.  Everyone knows everyone, and often times every employee has regular interaction with the owner. This means that as as the new business owner you’re the outsider and that can be VERY intimidating.  Particularly for introverts or ‘numbers’ guys that really don’t give off that warm and fuzzy vibe.   As the new business owner, you need to get the employees to buy in to your position as owner of the business (at least) and likely get them to buy in to your vision of the business going

In the search to reduce my tax burden I ran across Puerto Rico.  Puerto Rico has deliberately set itself up as a popular destination for digital business owners and other entrepreneurs by implementing a series of tax benefits. In this article, I’ll examine those benefits, how they work for digital business owners, and give some of own thoughts on why I didn’t ultimately move down there. Qualified businesses can benefit from a 4% tax rate, compared to the U.S. rate of up to 37%.  Along with that stock, bond, and even crypto investors can enjoy

Key Man Risk is the risk that accompanies there being one highly integral member of a business. The absence of this crucial person could cause a company to crash, as this person is critical in business functionality over any number of factors. How does one assess the Key Man Risk when acquiring a small business? To assess Key Man Risk, one must identify the key man and determine dependency, retention, succession, diversification, and revision. Determining Key Man Risk is essential in small business acquisition as small businesses have fewer staff members and a higher likelihood