One Business-Two Prices?

Written By Della Kirkman, CPA

It's all about taxes and depreciation.

A subscriber reached out to me on LinkedIn recently. (Feel free to do the same😊) I blocked out a few personal items, and his exact identity, but this is what I love!

Steve summarizes the deal:

  • landscaping business

  • asset heavy

  • avg EBITDA $570K

  • avg profit $425K

(Again, this is over simplified but great for the basic concept)

It's all about taxes and depreciation, two key components of buying and selling businesses. When structuring an acquisition, or a sale for that matter, you must consider the type of deal, the price, and the allocation of that price if it's an asset sale, UPFRONT. Otherwise, you may get a "wildly" unexpected outcome.

Della Kirkman, CPA

Della Kirkman, CPA - In less than 10 years, she went from single mom serving tables at Cracker Barrel, to buying her first business, growing it, and selling it to achieve a level of wealth and independence she had only dreamed about. Della is the publisher of the Shift-N-Gears.com bi-weekly newsletter, designed to help people buy, grow, and sell small businesses. The free newsletter is part of a larger, developing educational platform encouraging women to pursue their dreams of entrepreneurship through acquisition, buying a profitable business that can support their lifestyle, rather than the hard, risky path of the startup.

https://www.shift-n-gears.com/meetdella
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