Ready to sell? How to price your business
Your true net profit is the number that potential buyers will want to know.
Susie Pemberton, Centralia, Mo.
I live in a small town and own a child care facility. My gross income in 2008 was $126,134. Someone’s interested in buying it, and they’re waiting for me to give them a price. I understand that I need to “adjust” my expense report for 2008, but I’m not sure what to use for a multiplier. I’ve been in business for six years, and can see room for expansion in the future. How do I name my price?
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DiggBreaking up the family business
If the problem of too many owners is killing the business, it’s time to restructure.
Kelli, Bishop, Calif.
How hard is it to split a family business? A mother and three siblings each own 20% of the business but the siblings don’t get along at all.
Tech upgrades: What pays off, what doesn’t
Looking to sell your business? Some technology investments are worth the cost.
DC Kirstein, Softcare Computer Consulting Co., Pittsburgh
Do you have any articles that link updating your company’s technology and selling your business? I believe that simply improving a company’s technology can help increase its resale value. Is this true?
Handing over my business to an employee
Daphne, Matthews, NC
I was planning on closing my business when an employee comes out of the wood work and asked to take it over. Can it be handed over for pennies on the dollar since it was going to be closed out in the first place? The employee promised to help me move out unwanted inventory, give me the cash to cover my current loans on the books, and then take it over. Can that be done without a cash hand out?
How much can I get for my biz?
Dave, Gulf Shores, Ala.
I have a full-service plumbing company on the coast. We have 400 active customers and approximately $90,000 worth of assets. Last year’s sales were $225,000. I am planning on selling for $210,000. Is that figure reasonable?
Selling your business and keeping the gains
A business owner looking to get out checks with Ask FSB on minimizing the tax bill.
Emile Dauphinais, Charlotte, N.C.
I’m looking to sell my business. What portion of the sale price is counted as capital gains? How long does one have from the sale of a business to use the profits before capital-gains taxation come into play? Will purchasing another business with the profits offset the gains? And does the new business have to be of the same type? I am now in retail, but might want to consider real estate.
Read more…
Taxes after selling a business
Colleen Stewart, Venice, Calif.
I recently sold my business. Do I have to pay taxes on the money I made from the sale?
My company needs funding
Craig Hampton, Verdugo City, Calif.
I developed an award-winning product that has buyers lined up. Due to a lack of funding, I have to put our company and patent up for sale. It took 12 years and all my savings to bring this to market. I do not want to sell. Do you have any advice? Read more…
Buying out your partner
William, Denver, Colo.
This question is a follow-up to “Who gets the name in a business custody battle?”
What happens when the majority shareholder wants to franchise the business, but the minority partner is against it? The minority partner is not willing to expand with her current partner. Instead, she’d like to go it alone. Does this trigger a buyout? Is that the best and only solution? Read more…
Purchasing an established corporation
DH, Wauna, Wash.
Instead of going through all the hassles of starting a new corporation (S-Corp, LLC, etc.) what is the recommendation for pursuing a dormant corporation? If I were able to verify that the current status of said company is in good standing, then what would be the recommendation? Read more…
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