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Impact of the New Tax Law When Selling Your Business February 8, 2018  by  Michael Shea PA Starting in 2018, the New Tax Law will have a enormous impact on middle market businesses. This is true whether you are at the point in life where it’s time to sell or if you want to grow your business by acquiring other companies. Sell-Side Let’s talk first about those who want to sell their company. If this is you and you want to stop reading, all you need to know is that selling now will cost you substantially less in income taxes. You get to take more home after tax. Deductions (depreciation) that have sheltered income for you in the past at 35% to 39.5% tax rates will now be taxable (recaptured) at rates as low as 21% to 29%. Most transactions are structured as a sale of assets which places the seller and buyer in the frustrating process of making an allocation of purchase price among the depreciable assets, working capital and intangible assets such as goodwill. This ...

Profitable Industries for Small Business December 18, 2017  by  Michael Shea PA Any good endeavor starts with a good idea – and the same is true for small businesses. While profit isn’t the only factor for a small business owner to consider, it’s an important place to start. Other factors to consider include whether the business matches your interests and skills, and what sort of barriers to entry are required such as licensing or training. If this sounds like a lot to navigate, do not fret –  Transworld  is here to help. We can help you go through an idea validation process – including market research and financial feasibility – before you’re too far in.  Transworld  can help you to do your research to make sure the concept will succeed. Owning a profitable small business is a great way to build wealth and take charge of your own destiny. The professionals at Transworld can help you get there. A recent study from Sageworks identified some of th...

ABOUT BUYING A BUSINESS SELL A BUSINESS FRANCHISE CONTACT Breakfast & Lunch Restaurant 2301-86892 ← Back Request More Information Send Via Email Description Profitable Breakfast and Lunch restaurant established 17 years. Absentee owned. Great records in quickbooks, tight processes and staff. Loyal customers and a simple menu make this a solid deal for the established operator or first timer. Ideal E2 or sole proprietor business for owner looking to work and further drive the profits. E2 visa doable Listing Details Price:  $185,000 USD Down Payment:  $145,000 USD Gross Revenue:  $286,414 USD Sellers Discretionary Earnings: $63,701 USD Category:  Restaurants, Breakfast Lunch Location:  Volusia, Florida Employees:  10 Years Owned:  17 Inventory:  $3,500 USD FF&E:  $10,000 USD Reason for Selling:  Discuss with Seller Transworld Business Advisors is t...

Rules of Thumb are for the birds October 11, 2015  by  Michael Shea PA   (Edit) In the world of small business sales and mergers and acquisitions every buyer thinks every business is overpriced and every seller thinks its worth more than what you tell them. Over the years “industry experts” of which I am apparently one, bandy about “rules of thumb”. In other words….business X sells at 2 x cash flow or 70% of sales etc etc etc. I recently had a broker call me up and tell me that a business was overpriced (not her job) and that the proper valuation method was a $ value per customer. Oddly enough a month prior she had a different position entirely (#notethesarcasm). Valuation is an art and there is data to support proper pricing. But in simplest terms there is not one method that is correct; however sellers need to be particularly cognizant of market dynamics like supply and demand and inventory levels. Yes even in small business sale and mergers when inventory...

What Add Backs are Legitimate in an M&A deal? March 11, 2016  by  Michael Shea PA An add back, for the uninitiated in M&A numbers, is an expense that is added back to the profits (most often earnings before interest, taxes, depreciation, and amortization, or EBITDA) of the business for the express purpose of improving the profit situation of the company. It’s a bit of alchemy; when you toss in enough add backs to the profits of a company, you turn EBITDA into the mythical “adjusted EBITDA.” The theory behind these add backs is that these expenses are purported to be extraneous, one-time, and/or “owner’s” expenses. In plain English, these add back expenses will either go away once the company is in the hands of the new owner or won’t be incurred again. Some legitimate add backs include the following: Adjustments to owner’s compensation: Many owners of closely held companies, especially successful and highly profitable ones, give themselves outsized salarie...