Resist Burying Personal Expenses and Assets in Your Company's Financials

Minimizing tax liability is a strategy all business owners think about. But when it comes time to obtain financing or sell the business, buried personal expenses and assets can create a problem in determining the true cash flow.

Buyers and bankers won't always give credit to many of these items. As a result, the cash flow can be suspect. And when you apply a multiplier to determine the value of the business, the results can be disappointing.

It is in the best interest of a business owner to show a healthy bottom line in the years preceding the sale of their business to get the highest price possible.

© 2009. Richmark Associates, Inc.

Some businesses can’t survive without the owners trying to do everything themselves. And there are no key employees in place to help manage the operations.

Buyers for businesses like these may be concerned if they themselves can’t replace the skills and experience of the owner. As a result, these businesses may have very little value to anyone else.

Business owners who don’t delegate need to make a strong effort to have experienced key people in place before they ever try to sell their companies.

© 2009. Richmark Associates, Inc.