Banks will look at the last federal tax return to validate the profits of the company. This means that, as you approach the time to put your business on the market, preparation is essential. At year-end is not the time to start this process – you have to start as...
For the seller to get all cash at closing, having the business qualify for bank financing is the most common technique. To qualify for a bank loan, you have to assure the bank that there is sufficient profit to repay the loan and pay the buyer a reasonable salary....
Once you have established a fair market value for your business based on your local market, the next step is validating the price to meet SBA Loan Guarantee requirements. This is done in part by calculating what the total package will cost, including the buyer’s...
If you have considered selling your business, determining its fair market value; the knowledge, experience and discretion of Dolan Sales, Inc. will be valuable assets in your endeavor. Please call Bob Dolan, CEO, directly at 888-893-6661. View Bob’s profile on...
Two top items a bank will want to see to consider before granting a business loan to your buyer is that the sales and cash flow trend are steady or growing, and that no one customer represents more than 10% of total sales. If there is a sales decline with a reasonable...
The most important reasons to complete this task before year-end are: 1. Every dollar you can add to your profit is worth a multiple of two to three-and-a-half times that amount when establishing the price of the business. So, pay the earned income tax at whatever...
