Part of my personal philosophy is to provide as much information as possible about the entire process of buying and selling a business and other services that are part of a sale.
Hopefully the following information may be of use to you.
Finance be it Seller Finance or finance from a third party lender such as a bank that provides an SBA loan is an important part of almost all transactions. After all, interest payments are tax deductible which provides an incentive plus if a buyer can borrow money they can buy a business that generates more profit or cash flow.LEARN MORE NOW
SBA loan benefits to a seller
Most business owners when selling their business do not want to carry any finance. When they understand the tax benefits, they may be willing to carry as seller finance, a small part of the purchase price.
If seller finance doesn’t appeal, the buyer will need to get a loan. Most buyers will therefore apply for an SBA loan.
Here are the benefits to a seller of an SBA loanLEARN MORE NOW
SBA loan benefits to a buyer
Most buyers of a business do not want to pay all cash for the purchase of their business as they miss out on the ability to lower the amount of tax they pay each year.
Here are the benefits to a buyer of an SBA loanLEARN MORE NOW
If you are looking to buy a business or buy a franchise, the quality of your credit is a critical factor whether you will qualify for a loan.LEARN MORE NOW
Unable to pay an SBA loan?
What happens if you are unable to pay an SBA loan and have to default?
If you have taken out a Small Business Administration or SBA loan and are not able to make your monthly payment it is undoubtedly creating a lot of stress and distraction you from your core task which is to own and operate your business.
If you have to default on your SBA loan is a question there are different options as each situation is unique.GET MORE INFORMATION
Using 401k or IRA to buy a business or franchise
In recent years there has been a strong trend from those working in Corporate America to tap into their retirement plans and buy a business.
For those between the ages of 35 and 50 and have built a 401k or IRA to decide that corporate life has been nice but there is more.
Many executives in Corporate America have built a strong skill set and have an interest to test their entrepreneurial skills and so this is one of the services Monty Walker and Walker Advisory Services can assist.LEARN MORE INFORMATION
Tax and selling or buying a business
How do you know your tax position when selling or buying a business?
Selling or buying a business comes with many moving parts and in addition, many unknown questions. Arriving at a tax position that is fair to both seller and buyer is probably the most important negotiation in the transaction.LEARN MORE NOW
Deferring taxes when selling a business
When you sell your business, you may face a surprising tax bill.
Depending on your local county and state tax implications, you can face anywhere from 23% in Federal Capital Gains and the new Medicare Surtax, all the way up to over half of the purchase price!LEARN MORE NOW
Structured sales benefits for a seller
A Structured Sale allows the seller of a business or practice to have the benefits of a lump sum sale, and yet preserve the tax benefits of deferring constructive receipt of income for a period of time.
This period of time is determined uniquely by the seller in conjunction with their professional tax advisor.LEARN MORE NOW
Escrow and a business sale
When you buy and sell a house in California, the formal part of the transaction after the negotiations are complete is the escrow process.
During escrow, a third party that is independent of the buyer, seller, lender, real estate agent and any other parties in the transaction process the paperwork to ensure the ownership of the house correctly and cleanly moves from the ownership of the seller to the buyer.
The role of the escrow company is to protect all the parties.
In a business transaction, the role of the escrow company is the same.LEARN MORE NOW
ESOP: Employee Stock Ownership Plan
An ESOP or Employee Stock Ownership Plan is an option for a business owner that wishes to sell their business.
The good news is that it is an option for a business owner to consider. The bad news is that it really only works for a very small number of businesses.LEARN MORE NOW