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How Long Does it Take to Prepare a Business for a Sale?

How to find a good cpa“I’m looking to sell my business in Atlanta. How long will it take?”

It’s the question every business broker dreads, because there’s no answer. Moreover, the question of how long it takes to prepare a business for sale neglects a fundamental issue: preparation is the most time-consuming part of the sale, and also the most important. To take your business from a state of disarray to full preparation for a sale can take anywhere from 1-3 years. The precise amount often varies with the size and complexity of your business, as well as how much work you’re willing to put into the process. Here are some factors you’ll need to consider.

Daily Operations

Now is the time to streamline your operations. That means putting your processes on paper, eliminating inefficiencies and redundancies, and ensuring a new owner is prepared to run your business. That can take as little as a few days if everything is in basic working order. Or it could take months.

There’s another consideration here, and that is the need to continue operating your business as you prepare for a sale. One of the factors that weighs on how long it will take is how demanding daily operations are. In other words, if running your business demands 60-80 hour weeks, it will take longer to prepare for a sale because you’ll have less time to commit to the preparation. 

Willingness to Prepare

Selling your business takes lots of work on your part. The time line will be shorter if you can fully commit your attention to the process. If you’re distracted, unwilling to help with due diligence prep, or otherwise drag out the process, prepare for many delays. 

Looming Issues

Issues such as lawsuits, regulatory compliance, taxation issues, and debt can all slow the timetable for selling your business. Not only must you address these issues in anticipation of due diligence; you may also have to lower your expectations of the business’s value if there are serious issues with liability exposure. An unbiased third party can take a careful look at any looming issues, and tell you what you need to do to correct them as quickly as possible. 

Your Approach to the Sale

One of the key factors in how long it takes to prepare your business for a sale is how aggressive you want to be in the search for a buyer. Are you merely willing to sell your business if the right buyer comes along? Or are you hoping to sell your business as soon as possible? The more aggressively you pursue a buyer, the more quickly you will likely find one. Of course, that also depends on how fully prepared you are for a sale, since buyers want to purchase businesses that are truly ready for a sale.

Negotiating the Sale

Finding a buyer is just the beginning of the process. You’ll also have to agree to terms of the sale, and fulfill your obligations under the sale contract. This can take a few days, a few months, or in some cases, even a few years. Factors such as how many demands the buyer has, how many negotiation sessions you need, and whether you’ll have a hand in operations after the sale can all affect how long it takes to secure and close a transaction.

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Are Business Partnerships a Good Option?

How to find a good cpaWhen you start a new business, deciding its form is one of the most important decisions you will make. There are six types of businesses:

  1. Sole Proprietorship
  2. Partnership
  3. Limited Liability Company
  4. Corporation
  5. S Corporation
  6. Cooperative

Each type has its own advantages and disadvantages. You should consult with an experienced business attorney to discuss who the business owners are or will be and when filling for a business; what kind of things the business will do or sell; how it will be financed; what its liabilities are or will be; and what exit strategy would be preferable. Your attorney can answer those questions and also tell you the tax advantages of each entity type.

Partnership Benefits

Anyone, even another business, can be a partner; i.e., co-owner of a business. The partnership pays no taxes, but must file an annual informational partnership return. Each partner pays income tax by means of a Schedule C attached to their Federal income tax return; the Schedule C reports their income or loss from the partnership.

A partnership has great flexibility in terms of partnership ownership percentages, voting rights, income rights, etc. Different types of shares can be issued and partnership property often can be distributed to a partner in a tax-deferred way.

The IRS allows partnership income, gains, losses, deductions, and credits to be allocated among partners any way they wish, as long as it conforms to the partnership agreement and is not done to reduce any partner’s individual tax liability. Your attorney should draft the partnership agreement, which often is a lengthy document and is legally binding on all partners.

Partnership Disadvantages

In a general partnership, all partners have unlimited liability and are responsible, jointly and separately, for business obligations. In a limited liability partnership (LLP), partners have limited liability and are not liable for each other’s misconduct or negligence.

In any type of partnership, accounting can become quite complex. In addition, each partner must pay their own self-employment tax (Social Security and Medicare tax).

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How Can a Contract Lawyer Help You?

If you run a business of any size, you’ll be dealing with contracts as a daily occurrence. You’ll be hiring and firing, perhaps taking on specialist consultants to deal with specific projects, not mention renting premises and storage facilities, and buying in raw materials or products to sell.

This can be a heavy burden to bear with other aspects of your business to run, and the consequences if you fail to review a contract and miss an unexpected clause could be costly.

With that that in mind, let’s look at how a contract lawyer can help you and add value to your business.

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What Does Obtaining An EIN Allow You To Do For Your Business?

If you want to start a new company, then one of the first and most important steps you have to take is to figure out how you will be paying taxes. Because the IRS is quite fickle about such things, it’s imperative that you take care of applying for a federal tax ID as soon as possible. This will allow you to start generating income right away. In this article, we’ll be talking about what kinds of IDs companies need, as well as how to check your EIN status once you’ve applied.

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Tim Grittani Net Worth And What We Can Learn From It

Tim Grittani Net Worth And What We Can Learn From ItTim Grittani net worth is estimated at $2.7 million dollars and likely to increase as time goes on. But, who is he, how did he make all of his money? And how can this help you?

Who Is Tim Grittani?

Tim Gritanni became popular after becoming a student of Timothy Sykes, a guru in penny stocks. He quickly took what he learned and put it to work starting with an investment of just $1,500 and slowly growing to $2.7 million.



How Did Tim Grittani Net Worth Grow?

Now though he did this in a pretty quick time, it wasn’t over night. He didn’t invest his money and the next day make $2.7 million. Instead it took some time, in fact he lost his initial investment completely not fully understanding how to trade and make money.

After losing the initial investment he saved up money from his summer job to reinvest. Not only that he started to learn all he could taking Timothy Sykes courses and putting the material to use.

After six months he was finally back to where he started, and now knew what it would really take to make a living trading penny stocks.

He then moved back home with his parents in January of 2012, under the condition that he make $10,000 by end of March that year. Through hard work, and determination he met that quarter goal.

He then decided to make a higher goal which he met, and then again and again until Tim Grittani net worth was $2.7 million dollars.

What Are Penny Stocks?

Penny stocks are stocks that trade for $5.00 or less and are “considered highly speculative and high risk because of their lack of liquidity, large bid-ask spread, small capitalization and limited flowing disclosure”, according to Investopedia.

As Timothy Sykes, Grittani’s teacher, says “This is a game, and you have to think of it like a game”. So trading penny stocks is something that can make you series money, but with it also has series risk.

Though it’s possible to make a lot of money with penny stocks the likelihood is low. Though that doesn’t mean there is nothing to learn from such a person.

Can We All Learn From A Penny Stock Trader?

Learning Tim Grittani net worth, and more importantly how he grew it to such a level, gives us three main things to take away.

First, Tim Grittani didn’t get to where he is over night. He learned, but rather then just learning and never doing anything he took action, setting goals for himself. Once each goal was set he set another, and another until a bad week was more profitable then 3 months would have been.

Second, don’t be afraid to lose it all. Tim Grittani lost his initial investment, but he didn’t let that stop him from growing his net worth to $2.7 million. Instead he learned from that mistake changed how he did things and made progress. Likewise we may lose everything, we may be working on a project and it falls out, or doesn’t work. We will lose time and money, but don’t let it cripple us, instead learn from it. Let your failure be the fire that helps you attain your ultimate goals.

Third, find something you’re semi good at, natural at, or just enjoy and become an expert. Tim Grittani wasn’t an expert at trading penny stocks when he started he had to become and expert. You can too, you may not be an expert at retail arbitrage, writing, or making money while you sleep. But you can become and expert, you can spend the time learning, practicing, failing and become that expert.

Tim Grittani net worth is much higher then most peoples, but we can reach the same or even higher. If we do all we can and become the expert in our chosen field.