Buying and Selling a Business

Size: px
Start display at page:

Download "Buying and Selling a Business"

Transcription

1 let s talk about Buying and Selling a Business Tea in Wonderland Youngs The Matthews Group Phone: (403) Fax: (403) Netvisit us at: Suite 404 Mount Royal Village th Street SW Calgary, Alberta T2R 1K1

2 A FEW CASUAL WORDS This is a quick take on buying or selling a business. So, take it for what it is - a notso-serious look at things to look at before you do the deal. Get help before you go ahead. A client says, I ve bought a business. We wince, and ask Did you buy shares or assets? POINT You can buy the assets the business uses or you can buy the company that owns those assets. If you buy the assets you usually get inventories, equipment and goodwill. You don t get the company. If you buy the shares you get the company that owns the assets. Client replies Who cares? We bought the business - What s the problem? No problem, just different deals. You buy shares, you take over a corporation that carries on that business. That company is not you. It has it s own rights and responsibilities. It s been around a while, so it may have misbehaved. It may have lied to the tax people; a truck may have run over an old gent. It may have dropped oil somewhere. No matter. You now own it. You may have a bag of trouble. Buying assets is usually less risky because you buy things some trucks, some goodwill, those inventories, and you don t take responsibility for the seller s past sins. Shares and assets are two different deals - with different taxes, prices, and risks. Right for the Time Roger Wood You accountants complicate things. I bought the shares. That s the business, right? No, you own the company, the company owns the business, and you may inherit its past sins. We ll go in with your lawyers to do due diligence - look around. Other consultants may have to provide environmental certificates - your bank will ask for them. We ll all spend a lot of time - and we ll make sure you can t sue us later if anything bad shows up later. No matter how good we are we can t know all the things a company has done. We ll do our best, but it takes time, it s costly and you won t get 100% certainty. Hey, I said keep it simple we bought shares. That s simple. Wrong. It only looks simple. Buy assets and you can kick a few tires, get experts to look at the assets, check titles and look for liens. Assets can often be bought on a bill of sale. Buy shares and you already know you take over the company s past sins. You still have to choose what assets you re buying. You ll find you may have to take on their liabilities too like trade payables. These things affect what you pay. That seldom happens when you buy assets.

3 OK, The seller wants to sell shares. Why? Unlike you, he got advice before he tried to deal. Most sellers want to sell shares of a small business to use the Enhanced Capital Gains Exemption less tax. You also take over responsibility for their past sins we ve said that before. You, the buyer, usually (there are always exceptions) want to buy assets. You want different things but you re both talking about the business so it s easy to get confused. In truth, we see few share deals. Most buyers won t bite. That s OK he says he ll indemnify me. No problem. Of course he will. It s a normal part of the deal. But the problems may show up years down the road. You ll have to prove loss and liability, and try to collect from someone lazing on a Cayman beach. Indemnities are fine short term (if funds are escrowed) later they re good for papering your closet. I trust the seller. I ve known him for years. Your choice. Let s look at how a share purchase might work. You normally try to buy the shares of a company that has been stripped of all the assets but the ones you want inventories, supplies, fixed assets, and goodwill. The seller takes the cash, receivables, cars, cottages etc, and pays off all the creditors. You re get a clean company with just the assets you want and no known debts. Dog Daze Hugh Block But, let s look at that balance sheet. The assets you ve paid a million for are on the books at $150,000 $50,000 inventories and $100,000 equipment. What happened to your other $850,000? Maybe the inventories are really worth $100,000 and the fixed assets $600,000, so that the other $300,000 is goodwill. Here s the bad news. It doesn t matter what those assets are really worth for tax purposes you take over the residual values he used. For example, if you sell those fixed assets for $600,000 you ll pay tax on the recapture of depreciation or gain in excess of the $100,000 book value. You picked up the seller s tax bill. Also, you can only claim depreciation from where he left off, and you ll get no goodwill write-off. So, if you have high earnings from that expensive goodwill you ll not get much to write off.

4 What about the inventories? Good question. Some people mis-state their inventories to avoid tax. You could be paying that bill too on that difference between the fair value of the inventory and what s in the books. Let s go back to blue sky a catchy name for goodwill. Often it s the biggest asset you bought. It s the difference between the fair value of the assets you can touch or measure and the total price you paid. If you buy shares that goodwill won t appear on your balance sheet. You ll get no tax write-off. Its cost is buried in the cost of your shares with no tax benefit to you unless you sell the shares again. So, lots of disadvantages to buying shares. Don t forget the potential liability that could be out there. OK! A share sale usually looks good for the seller. Bingo. You ve got it. He may pay no tax on the sale and you re picking up extra tax in the company. Nice situation - walk away from past sins AND pay no taxes. It s a pardon with treats. We don t need those problems. We ll buy assets. You re probably wise however we said USUALLY. You could be the exception. Buying shares sometimes makes sense share purchases do happen. Sometimes you have to buy shares or walk away from the deal. That happens. Potential buyers for small businesses often outnumber sellers. So, you may have competition. Then too, sometimes it just makes no difference. We run across very clean companies where the book value of the assets is close to the price asked for the shares. Or, you may be willing to do a share deal if you re paying with the shares of your company. Public companies do this. Each case is different. Haight-Ashbury Christina Luck It s just that normally you ll want to buy assets, and sell shares That can be a problem. The seller wants to sell you shares, you want to buy the company s assets. You re on different planets. Now, let s look at another common problem the million dollar business. Most sellers overvalue their businesses. They ll sell out if they get their price. That price moves up to a nice round figure. Whether it be coffee shop or superstore - it s the starting point. The problem is bridging the gap between their million and the thirty five thousand you think it s worth. Often you wonder how much you can offer without deadly insult.

5 Shares or assets and the million dollar business two big problems, and you usually haven t started the game yet. You just contradicted yourself. We can buy shares and the business is worth a lot of money because we can cut a lot of costs. No. We re talking usuallys. You ll usually buy assets and you need to know exactly what you re buying before you decide the price is right. More on price and value in a minute. OK, what about buying assets? It s simple in theory, but it also has its own dangers. You ll fit this new business somewhere in your organization. Often you ll set up a new company to buy the assets. Sometimes you ll use one of your existing companies. The choice depends on where that business fits in your organization. We can help you decide. Your company borrows the money from your sock, bank, relatives, or the Godfather. It buys the inventories, supplies, small tools, fixed assets, leases, patents, customer lists, and goodwill. Goodwill is what s left after you ve assigned values to all the tangible or measurable assets. For example, if you buy a business for $1 million and the inventories are $300,000, the supplies & small tools $50,000, and the fixed assets $250,000, the client list $100,000, the goodwill will be $300,000. How do you decide on those values? Most times after a lot of hassle between you and the seller. You ll agree on the total price, and then scrap over the allocation to inventories, fixed assets, goodwill etc. You ll want high values on inventories and supplies (100% tax deductible), high values on fast depreciating equipment like trucks and computers, and low values on land (0% depreciable) and goodwill (depreciable at a snail s pace). Just Ducky Ray Matthews The seller prefers the reverse a high value to goodwill (only 50% taxable), and to items that will result in a capital gain such as land. That s easy. What else should I know about buying assets? Asset deals are usually easier to put together and easier to finance. You have a clean company with no history. You do less due diligence, pay less in legal and accounting. The assets have serial numbers and histories, or you can assign them a value like goodwill. The guy with the flat dog can t sue. Your friendly tax authorities are no worry. You re not going to pay the seller s old liabilities unless you don t check for liens.

6 Of course you ll check for liens and encumbrances against the assets but that s routine. GST can be an issue but you can elect out of it. Normally no GST is paid on a sale of all the assets of a business. This makes it simpler to paper an asset deal - your professional fees will be less (alas!). You ll also find you can borrow money more easily for the deal. Your bankers can take direct security on the assets. Bankers understand asset purchases. Share deals are often beyond many of them. Tips Samantha Blue Let me understand this. It s easier to borrow to buy assets? Most times yes. But, it s always hard to borrow for goodwill. Bankers dislike goodwill. Goodwill has no serial number. It evaporates at the first whiff of trouble. They can t corral it or sell it, so expect problems borrowing if you buy a lot of blue sky. You ll need plenty of your own money in the deal or a lot of security. Bankers know blue sky generates income, but they can t dab a rope on it if you misbehave. So far so good. What are the problems with buying assets? It s more difficult to protect your goodwill. How do you make sure it belongs to you, and it stays with you. You need to control the name, location, process, people, or whatever it is that protects your goodwill. You can get ownership of the name. You can make sure you have a good lease if it s location. You can truss up individuals with contracts and non-compete agreements. You pin down anything which might have a hint of goodwill, and you ll always get the seller s company to change its name. You have to make sure you get good title to the assets you buy. All provinces have laws to protect creditors when assets are sold. You should know if these exist. In some provinces the seller has to comply with a Bulk Sales Act for you to get good title to the assets you bought. You must get a clearance certificate. Fail and you could be handing over those shiny new assets to the seller s creditors. Not a problem in Alberta now. But a factor other places. Worth repeating. The seller can not sell assets without considering debts - so creditors have to be paid out or agree to the sale. If not they ll have a claim against your new assets.

7 Sounds boring. How much is a business worth? Before we go there, we should finish with asset purchases. Before we get to value, don t forget you ll want protection against misrepresentation, and competition from the seller. You ll want indemnities and non-compete agreements. That s standard. You may also want to hold back part of the price for a while in case anything shows up. Now let s go back to the two problems we talked about earlier. The seller wants to SELL SHARES for ONE MILLION DOLLARS. Well, what should I pay for assets? How long is a piece of string? What s the business worth to you? Price and value are not the same. Price is what you pay after you ve finished negotiating. Value is either what is is worth to you in dollar terms, or it s an airy-fairy amount dreamt up by valuators. Don t confuse the two. Valuators, well there is no deal and they can t know all the factors that affect price what one will sell for and the other pay. They do their best. But don t let them tell you what to pay you re a smart buyer. Trust your instincts. Do your arithmetic. Listen to your advisors. Price is negotiable. One side is always stronger, smarter, more knowledgeable, richer, etc. Be on that side. The price you pay is affected by taxes, timing, the structure and a zillion other factors. Price is often less important than how the deal is structured. Look more at cash flow! See if the seller will carry part of the price. Make part of it contingent on business performance. Good deals fall apart on price but structure is more important. What about the difference in what we think it s worth? Urge the seller to get expert advice before the million dollar syndrome sets in. It ll save hassle later. Understand that the business may be worth more to the seller than it is to you. The seller is there. You have to borrow to buy it, and hope you ll be able to run it. Negotiate hard, take your time, don t be panicked by other buyers. Pavarti Susan Crompton

8 Above all know how much it s worth to you on what terms. Don t go past this you re not at an auction. Buying and selling businesses is an art not a science. So, a few last cautions beware overconfidence, you may not be able to run it better. Avoid a business that s reached its full potential unless you can slash joint overhead. Structure the deal to work for you make part of the price contingent on results, make part of the price as tax deductible consulting fees. Look at assuming existing debt. Hold back an amount for snake protection. Focus on cashflow - the business may pay for itself. Don t bring in the squints and scriveners too early we kill deals and get paid for it. But don t go in unarmed. Get the best advice you can from people who ve been there many time before. Grizzly Bear Maureen Enns

BUYING A HOME A few things you should know. If you are a first time home buyer, you should read this. It will give you a few hints

BUYING A HOME A few things you should know. If you are a first time home buyer, you should read this. It will give you a few hints BUYING A HOME A few things you should know If you are a first time home buyer, you should read this. It will give you a few hints about the ins and outs of purchasing a home. If you have already owned

More information

Special Report: 5 Mistakes Homeowners Make When Selling A House. And The Simple Tricks To Avoid Them!

Special Report: 5 Mistakes Homeowners Make When Selling A House. And The Simple Tricks To Avoid Them! Special Report: 5 Mistakes Homeowners Make When Selling A House And The Simple Tricks To Avoid Them! 1 Special Report: 5 Mistakes Homeowners Make When Selling A House Dear Homeowner, And The Simple Tricks

More information

The Mortgage Guide. Helping you find the right mortgage for you. Brought to you by. V0050713a

The Mortgage Guide. Helping you find the right mortgage for you. Brought to you by. V0050713a The Mortgage Guide Helping you find the right mortgage for you Brought to you by Hello. Contents We re the Which? Mortgage Advisers team. Buying a house is the biggest financial commitment most of us ever

More information

The material in this document is intended to provide only general information to Canadian Western Bank s clients and the public, and not for the

The material in this document is intended to provide only general information to Canadian Western Bank s clients and the public, and not for the Business Valuation The material in this document is intended to provide only general information to Canadian Western Bank s clients and the public, and not for the purposes of providing professional advice.

More information

Mortgage Advisers. The Mortgage Guide Helping you find the right mortgage for you

Mortgage Advisers. The Mortgage Guide Helping you find the right mortgage for you Mortgage Advisers The Mortgage Guide Helping you find the right mortgage for you Hello. We re the Which? Mortgage Advisers team. Buying a house is the biggest financial commitment most of us ever make.

More information

Wholesaling Mark Ferguson

Wholesaling Mark Ferguson TRANSCRIPT OF EPISODE 14 OF THE INVEST FOUR MORE PODCAST Wholesaling Mark Ferguson Mark: Hi everyone. Mark Ferguson here with another episode of the Invest More Real Estate podcast. Today is just going

More information

BUYING OR SELLING YOUR BUSINESS

BUYING OR SELLING YOUR BUSINESS BUYING OR SELLING YOUR BUSINESS On a regular basis I and work with buyers and sellers of businesses. In this article, I thought I would walk you through some considerations from an Advisor s point-of-view

More information

How Selling Your House To A Real Estate Investor Stacks Up Against Your Other Options

How Selling Your House To A Real Estate Investor Stacks Up Against Your Other Options How Selling Your House To A Real Estate Investor Stacks Up Against Your Other Options Pros, cons, costs, and timeline of each option So, you need to sell your house. Selling in a market like today s can

More information

Buying a Car. A Car Means Convenience. Which Car is Right for You?

Buying a Car. A Car Means Convenience. Which Car is Right for You? Buying a Car A Car Means Convenience It s Wednesday morning and you are sleeping soundly, dreaming about that Hawaiian vacation you d like to take. Suddenly you hear, instead of ocean waves, a loud buzz.

More information

Club Accounts. 2011 Question 6.

Club Accounts. 2011 Question 6. Club Accounts. 2011 Question 6. Anyone familiar with Farm Accounts or Service Firms (notes for both topics are back on the webpage you found this on), will have no trouble with Club Accounts. Essentially

More information

SPECIAL REPORT. How To. Sell Your Home. In 9 Days Or Less. No Commissions! No Fees!

SPECIAL REPORT. How To. Sell Your Home. In 9 Days Or Less. No Commissions! No Fees! SPECIAL REPORT How To Sell Your Home In 9 Days Or Less No Commissions! No Fees! You may discover the perfect solution by reading this report. If you are like many home owners struggling to sell your home

More information

P1: OTA/XYZ P2: ABC c01 JWBT043/Goins December 4, 2008 14:53 Printer Name: Courier Westford, Westford, MA SECTION I

P1: OTA/XYZ P2: ABC c01 JWBT043/Goins December 4, 2008 14:53 Printer Name: Courier Westford, Westford, MA SECTION I SECTION I Real Estate Day Trading: ANewWaytoMakeBig Money Buying and Selling Houses the Same Day COPYRIGHTED MATERIAL CHAPTER 1 Click a Mouse, Sell a House: Real Estate Day Trading Is the Easiest and

More information

Guide for Homebuyers

Guide for Homebuyers Guide for Homebuyers Tips for Getting a Safe Mortgage You Can Afford Q u i c k S u m m a ry Figure out what you can afford. Contact at least 3 different lenders or brokers. When you call, say: I m buying

More information

ACTIVITY 8.1 A MARGINAL PLAY

ACTIVITY 8.1 A MARGINAL PLAY LESSON 8 BUYING ON MARGIN AND SELLING SHORT ACTIVITY 8.1 A MARGINAL PLAY Stockbroker Luke, Katie, and Jeremy are sitting around a desk near a sign labeled Brokerage Office. The Moderator is standing in

More information

Lesson Module 3: Defensive Spending Tackling Credit & Debit Cards

Lesson Module 3: Defensive Spending Tackling Credit & Debit Cards Lesson Module 3: Defensive Spending Tackling Credit & Debit Cards Module 3 Overview Debit cards can be a very safe and convenient way to make purchases. But since money spent on a debit card comes right

More information

THEME: VALUING GOODWILL

THEME: VALUING GOODWILL THEME: VALUING GOODWILL By John W. Day, MBA ACCOUNTING TERM: Goodwill Goodwill is the difference between the value of a business enterprise as a whole and the sum of the current fair values of its identifiable

More information

Seven Things You Must Know Before Hiring a Real Estate Agent

Seven Things You Must Know Before Hiring a Real Estate Agent Seven Things You Must Know Before Hiring a Real Estate Agent 1 Introduction Selling a home can be one of the most stressful situations of your life. Whether you re upsizing, downsizing, moving across the

More information

Buy or Lease a Car. published by AAA Fair Credit Foundation

Buy or Lease a Car. published by AAA Fair Credit Foundation Buy or Lease a Car published by AAA Fair Credit Foundation Buy or Lease a Car 1. What is Leasing?................................................................. 2 2. The Pros and Cons of Leasing and

More information

How Selling Your House To A Real Estate Investor Stacks Up Against Your Other Options

How Selling Your House To A Real Estate Investor Stacks Up Against Your Other Options How Selling Your House To A Real Estate Investor Stacks Up Against Your Other Options Pros, cons, costs, and timeline of each option So, you need to sell your house. Selling in a market like today s can

More information

Chapter 4: Buying an Existing Business

Chapter 4: Buying an Existing Business Chapter 4: Buying an Existing Business 1 Learning Objectives To understand that buying an existing business has several important advantages over starting one, including less risk, less time and effort,

More information

Making Loans and Gifts to Family Members Last update: January 14, 2015

Making Loans and Gifts to Family Members Last update: January 14, 2015 Summary Making Loans and Gifts to Family Members Last update: January 14, 2015 Loans to family members can sometimes be of financial benefit to both parties. Gifts also can be a blessing to both giver

More information

Getting a Difficult Business Loan Is Easy

Getting a Difficult Business Loan Is Easy Getting a Difficult Business Loan Is Easy Learn How Easy IT Is To Get a Business Loan Even IF You Have Bad Credit And Have Been Turned Down Before Every Winner Has A Coach! John P Fazzio, Your Coach www.winning-advantage.com

More information

The Seven Deadly Sins Of Car Buying That Could Cost You Dearly, And How To Avoid Them

The Seven Deadly Sins Of Car Buying That Could Cost You Dearly, And How To Avoid Them The Seven Deadly Sins Of Car Buying That Could Cost You Dearly, And How To Avoid Them The Car Business 101... 2 Sin #1: Shopping Based On Monthly Payment Instead Of Price... 3 Sin #2: Putting Money Down

More information

JUST BEGINNING. Your financial life is. I m Buying a Car!

JUST BEGINNING. Your financial life is. I m Buying a Car! Your financial life is JUST BEGINNING. The decisions you make now will put a steering wheel and a credit card in your hands. But they will also affect your financial future. Your choices may even prevent

More information

THEME: BUSINESS DISPOSITIONS

THEME: BUSINESS DISPOSITIONS THEME: BUSINESS DISPOSITIONS By John W. Day, MBA ACCOUNTING TERM: Capital Asset For accounting purposes, a capital asset is property purchased for use in production over long periods of time rather than

More information

Having cash on hand is costly since you either have to raise money initially (for example, by borrowing from a bank) or, if you retain cash out of

Having cash on hand is costly since you either have to raise money initially (for example, by borrowing from a bank) or, if you retain cash out of 1 Working capital refers to liquid funds used to purchase materials and pay workers. This is in contrast to long term capital such as buildings and machinery. Part of working capital management is cash

More information

Mortgages and other money matters

Mortgages and other money matters Mortgages and other money matters 2 Buying a Home What about the money? The first thing most people think about when they want to buy a home is how much will it cost and where will I find the money for

More information

Would You Like To Earn $1000 s With The Click Of A Button?

Would You Like To Earn $1000 s With The Click Of A Button? Would You Like To Earn $1000 s With The Click Of A Button? (Follow these easy step by step instructions and you will) This Version of the ebook is for all countries other than the USA. If you need the

More information

YOUR MONEY, YOUR GOALS. A financial empowerment toolkit for community volunteers

YOUR MONEY, YOUR GOALS. A financial empowerment toolkit for community volunteers YOUR MONEY, YOUR GOALS A financial empowerment toolkit for community volunteers Consumer Financial Protection Bureau April 2015 Table of contents INTRODUCTION PART 1: Volunteers and financial empowerment...

More information

How do I get good credit?

How do I get good credit? Slide 1 Credit The information provided in this e-course is intended for educational purposes only and does not constitute specific advice for you as an individual. When evaluating your particular needs,

More information

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook

for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook Welcome! This workshop is about credit. Credit is buying something now, but paying for it later. Credit can be useful

More information

How to brand your dealership.

How to brand your dealership. autorevo.com 2013 Guide #03 How to brand your dealership. a dealership branding guide by AutoRevo. Take a good look at your dealership... How do customers see your dealership? Do you have an obvious identity,

More information

The 4 Ways You Can. When A Realtor Can t Do The Job

The 4 Ways You Can. When A Realtor Can t Do The Job The 4 Ways You Can Sell Your Home When A Realtor Can t Do The Job Table Of Contents: 1. Selling Your Home Fast. 2. Home Selling Guidelines 3. Is It A Good Idea To Sell The Home Yourself? 4. Marketing Your

More information

NOLO. Nolo s Guide to Limited Liability Companies: Forming an LLC

NOLO. Nolo s Guide to Limited Liability Companies: Forming an LLC NOLO Nolo s Guide to Limited Liability Companies: Forming an LLC Table of Contents LLC Basics...3 Limited Personal Liability for LLC Owners...3 Exceptions to LLC Owners Limited Liability...4 LLC Management...4

More information

Asset Purchase or Stock Purchase: What s the Difference? Why should I care?

Asset Purchase or Stock Purchase: What s the Difference? Why should I care? Asset Purchase or Stock Purchase: What s the Difference? Why should I care? There are two primary ways that businesses are purchased: stock purchase and asset purchase. The most common, by far is the asset

More information

Todd: Kim: Todd: Kim: Todd: Kim:

Todd: Kim: Todd: Kim: Todd: Kim: Todd: [0:00:18] Hey everybody, welcome to another edition of The Prosperity Podcast, this is No BS Money Guy Todd Strobel. Once again, we have my cohost, bestselling financial author Kim Butler with us,

More information

Cash Flow, Taxes, and Project Evaluation. Remember Income versus Cashflow

Cash Flow, Taxes, and Project Evaluation. Remember Income versus Cashflow Cash Flow, Taxes, and Project Evaluation Of the four steps in calculating NPV, the most difficult is the first: Forecasting cash flows. We now focus on this problem, with special attention to What is cash

More information

The Company or the Assets?

The Company or the Assets? Introduction Once the decision to sell or buy a business owned by a company has been made, the next most fundamental question is whether to sell or buy company shares or business assets. A sale of shares

More information

TRAVEL-TIMESHARES-VACATIONS

TRAVEL-TIMESHARES-VACATIONS TRAVEL-TIMESHARES-VACATIONS Need a vacation? Before you start relaxing to the sound of the waves or skiing the slopes, do some smart travel shopping first not only to end up with a great trip and a good

More information

Approximately 45 minutes worth of materials for a Y8 9 Citizenship/PSHE lesson on Managing money / Personal finance.

Approximately 45 minutes worth of materials for a Y8 9 Citizenship/PSHE lesson on Managing money / Personal finance. Approximately 45 minutes worth of materials for a Y8 9 Citizenship/PSHE lesson on Managing money / Personal finance. Learning objectives: understanding that some money choices are risky evaluating the

More information

GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422

GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 TYPES OF HOMES Buying a house will be one of the biggest investments one will ever

More information

CPA MOCK Evaluation Finance Elective Page 1

CPA MOCK Evaluation Finance Elective Page 1 CPA MOCK Evaluation Finance Elective Page 1 ELECTIVE (FINANCE)- Elective examinations will be 3 hours in length. Candidates will be given 4 hours to complete the examination, providing an extra hour to

More information

Merger Model Overview

Merger Model Overview Merger Model Overview We can divide the merger model into an 8-step process: The merger model tells you what happens when one company acquires another company. Usually, the buyer makes an offer to acquire

More information

THE PRIVATE PLACEMENT MARKET

THE PRIVATE PLACEMENT MARKET GUIDE TO INVESTING: THE PRIVATE PLACEMENT MARKET FOR RETAIL INVESTORS WELCOME TO THE INVESTRIGHT GUIDE TO INVESTING IN THE PRIVATE PLACEMENT MARKET FOR RETAIL INVESTORS Both public and private businesses

More information

"How to Sell Your Land 'as is' For CA$H on the Date of Your Choice, Guaranteed"

How to Sell Your Land 'as is' For CA$H on the Date of Your Choice, Guaranteed Free Special Report "How to Sell Your Land 'as is' For CA$H on the Date of Your Choice, Guaranteed" If you want to sell your land in the fastest, easiest, and most convenient manner,read this important

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

Introduction 4. What is Refinancing? 5. Changing Home Loans 5 Changing Needs 6 Identifying Better Opportunities 6 Additional Home Loan Features 6

Introduction 4. What is Refinancing? 5. Changing Home Loans 5 Changing Needs 6 Identifying Better Opportunities 6 Additional Home Loan Features 6 Contents Introduction 4 What is Refinancing? 5 Changing Home Loans 5 Changing Needs 6 Identifying Better Opportunities 6 Additional Home Loan Features 6 What are the Advantages of Refinancing? 7 1. Consolidating

More information

Seven Things You Must Know Before Hiring a Real Estate Agent

Seven Things You Must Know Before Hiring a Real Estate Agent Seven Things You Must Know Before Hiring a Real Estate Agent Seven Things To Know Before Hiring a Real Estate Agent Copyright All Rights Reserved 1 Introduction Selling a home can be one of the most stressful

More information

0:00:29 Kim: Thank you Todd, happy to be here, looking forward to talking about selfdirected

0:00:29 Kim: Thank you Todd, happy to be here, looking forward to talking about selfdirected 0:00:18 Todd: Hey everybody, welcome to another edition of The Prosperity Podcast, this is No BS Money Guy Todd Strobel. Once again, we have cohost and bestselling financial author Kim Butler in the house

More information

How to Flip Domain Names

How to Flip Domain Names How to Flip Domain Names Published by http://www.anticareer.com Disclaimer: The rights of this ebook are owned by Anticareer.com. You are not allowed to copy, reprint, or sell this ebook. Violation of

More information

FREQUENTLY ASKED QUESTIONS Business start up

FREQUENTLY ASKED QUESTIONS Business start up FREQUENTLY ASKED QUESTIONS Business start up Q: Do I have to form a company before I go into business? A: No, you don t have to form a company to start your business. There are three basic business structures

More information

Retiring from the Family Business Last update: October 27, 2011

Retiring from the Family Business Last update: October 27, 2011 Summary Retiring from the Family Business Last update: October 27, 2011 If you are the owner or a major partner in a small business, your retirement concerns are more complex than most people s. It is

More information

Retire Rich. Written By Joshua Sharp Self Directed IRA and 401k Expert. Larry Goins. Real Estate Author, Trainer and Investor

Retire Rich. Written By Joshua Sharp Self Directed IRA and 401k Expert. Larry Goins. Real Estate Author, Trainer and Investor Retire Rich GetOutOfTheVolatileFinancialMarkets AndSuperchargeYourIRAorRetirement AccountUsingDiscountedRealEstate! RentorFlip UsingyourIRAor401ktothefullest.KnowtheRightTimetoUse YourRetirementAccountandGettheMostFromYourRealEstateInvestments.

More information

How to Sell Your Property Fast and For Top Dollar!

How to Sell Your Property Fast and For Top Dollar! SPECIAL REPORT How to Sell Your Property Fast and For Top Dollar! A Guide for Home Sellers to Help Attract An Unlimited Number of Buyers for Your Property This publication is designed to provide accurate

More information

Home loans. How do home loans work? TIP Work out how much you can afford to borrow. Factsheet. August 2011

Home loans. How do home loans work? TIP Work out how much you can afford to borrow. Factsheet. August 2011 Factsheet August 2011 Buying your own home may be one of the biggest financial decisions you ll ever make. While a few fortunate people may already have enough money to buy a home outright, most will find

More information

Before you agree to buy a house, make sure

Before you agree to buy a house, make sure SPECIAL ALERT Office of the Attorney General, Consumer Protection Division Home Buyers: Beware of Flipping Scams Bought by "flipper" $24,000 February Before you agree to buy a house, make sure you re not

More information

Accounting Practice Questions

Accounting Practice Questions Accounting Practice Questions 1) The fundamental accounting equation states that: a) assets = liabilities + owner s equity b) assets = liabilities + drawings c) assets = liabilities + net income d) assets

More information

Virtual Flips QUICK Start Guide

Virtual Flips QUICK Start Guide Virtual Flips QUICK Start Guide The Ultimate Virtual Real Estate wholesaling 7 step action plan By Christopher Seder Copyright 2014 VirtualFlips.com, and Christopherseder.com, All rights reserved. No part

More information

Instructor Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Instructor Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum Loan to Own Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum TABLE OF CONTENTS Page Module Overview 1 Purpose 1 Objectives 1 Time 1 Materials and Equipment Needed to Present

More information

Quick Guide: Before you sell

Quick Guide: Before you sell Quick Guide: Before you sell If you re getting ready to sell your property, we have gathered our top tips and the most helpful resources for how to maximise the property value, how the process works, and

More information

Selling or Closing a Sole Proprietorship

Selling or Closing a Sole Proprietorship C H A P T E R Selling or Closing a Sole Proprietorship 18 Reporting the Sale of a Sole Proprietorship...262 Figuring Your Gain or Loss...262 How Your Gain or Loss Is Taxed...263 The Importance of an Arms-Length

More information

How Banks Create Money: The Balance Sheets Contents

How Banks Create Money: The Balance Sheets Contents How Banks Create Money: The Balance Sheets Contents 1. The different types of money 2. A quick word on balance sheets 3. How central banks create money 1. Central bank reserves 2. Cash 4. How commercial

More information

Anytime Adviser New Car Buying Coach

Anytime Adviser New Car Buying Coach Anytime Adviser New Car Buying Coach Welcome. This interactive guide offers you strategies for getting the best deal on a new car. Let's begin. Interested in a little guidance to negotiate your best deal

More information

FINANCIAL STRATEGIES By Charles R. Liberty, CPA

FINANCIAL STRATEGIES By Charles R. Liberty, CPA FINANCIAL STRATEGIES By Charles R. Liberty, CPA DON T BE AFRAID TO PAY SOME TAX Tax rates are as low as they have ever been, and possibly as low as they will ever be again. Take advantage of the 15% bracket.

More information

Using Credit to Your Advantage.

Using Credit to Your Advantage. Using Credit to Your Advantage. Topic Overview. The Using Credit To Your Advantage topic will provide participants with all the basic information they need to understand credit what it is and how to make

More information

How to Use Your Retirement Funds to Finance Your Small Business with No Taxes or Penalties. How To Use Your Retirement Funds to Finance Your Business

How to Use Your Retirement Funds to Finance Your Small Business with No Taxes or Penalties. How To Use Your Retirement Funds to Finance Your Business How To Use Your Retirement Funds to Finance Your Business By Bill Seagraves, President January 25, 2009 TABLE OF CONTENTS Overview Succeed in Business and Retire Wealthy: It s All About Cash Flow The Rich

More information

Questions to Ask Yourself When Buying a New Home

Questions to Ask Yourself When Buying a New Home Questions to Ask Yourself When Buying a New Home When I start visiting homes, what should I be looking for the first time through? The house you ultimately choose to call home will play a major role in

More information

Session 19 -Taxable acquisitions

Session 19 -Taxable acquisitions -Taxable acquisitions Acquire stock or assets? Assume that Buyer Corporation wants to acquire the business of Target Corporation Target's assets have appreciated and are worth more than their tax basis

More information

Chapter 2 Balance sheets - what a company owns and what it owes

Chapter 2 Balance sheets - what a company owns and what it owes Chapter 2 Balance sheets - what a company owns and what it owes SharePad is packed full of useful financial data. This data holds the key to understanding the financial health and value of any company

More information

We need to allocate the purchase price in an M&A deal because we often pay more for the seller than what their balance sheet says they re worth.

We need to allocate the purchase price in an M&A deal because we often pay more for the seller than what their balance sheet says they re worth. Why Purchase Price Allocation? We need to allocate the purchase price in an M&A deal because we often pay more for the seller than what their balance sheet says they re worth. When that happens, we run

More information

LESSON 1 -- GETTING OUT OF DEBT

LESSON 1 -- GETTING OUT OF DEBT LESSON 1 -- GETTING OUT OF DEBT LESSON DESCRIPTION AND BACKGROUND This lesson uses the Better Money Habits video Steps to Help You Get Out of Debt (www.bettermoneyhabits.com) to explain the concept of

More information

Using a conveyancing lawyer: Ten helpful tips

Using a conveyancing lawyer: Ten helpful tips Using a conveyancing lawyer: Ten helpful tips www.legalombudsman.org.uk Buying a new home is a significant step in anyone s life. You might be moving with a new job, getting a bigger place for a new or

More information

Real Property for a Real Retirement.

Real Property for a Real Retirement. Real Property for a Real Retirement. Rent or Flip - Using your IRA or 401k to the fullest. Know the Right Time to Use Your Retirement Account and Get the Most From Your Real Estate Investments. 2011 CompleteIRA

More information

WELCOME COURSE OUTLINE

WELCOME COURSE OUTLINE WELCOME COURSE OUTLINE Dear Home Buyer: Thank you for giving us the opportunity to help guide you through your home lending process. It is typically the largest financial transaction you will make and

More information

By Lee Perkins - Managing Director of the Small Business Division at Sage

By Lee Perkins - Managing Director of the Small Business Division at Sage Good Cash Flow Management Guide By Lee Perkins - Managing Director of the Small Business Division at Sage What is cash flow? As any small business owner or adviser will tell you, cash is king. It s a wellknown

More information

THE OPTIMIZER HANDBOOK:

THE OPTIMIZER HANDBOOK: THE OPTIMIZER HANDBOOK: LEAD SCORING Section 1: What is Lead Scoring? Picture this: you re selling vehicles, and you have a list that features over two hundred different leads, but you re only allowed

More information

Chapter 3 How to analyse a balance sheet

Chapter 3 How to analyse a balance sheet Chapter 3 How to analyse a balance sheet In the previous chapter we looked at how a balance sheet was put together and the numbers that go into it. In this chapter, we are going to take all those numbers

More information

BETTER YOUR CREDIT PROFILE

BETTER YOUR CREDIT PROFILE BETTER YOUR CREDIT PROFILE Introduction What there is to your ITC that makes it so important to you and to everyone that needs to give you money. Your credit record shows the way you have been paying your

More information

Manage your. The 8 best ways to ask for payments. Increase your sales through customer feedback. How to stay on top of your.

Manage your. The 8 best ways to ask for payments. Increase your sales through customer feedback. How to stay on top of your. Manage your cash flow Increase your sales through customer feedback The 8 best ways to ask for payments How to stay on top of your cash flow What is cash flow? As any small business owner or adviser will

More information

Four Steps to Reduce Your Debt

Four Steps to Reduce Your Debt Four Steps to Reduce Your Debt Overview Simple steps you can take to reduce your debt. Admit that you have a problem and commit yourself to fixing it. Stop debt spending. Make a spending plan. Pay down

More information

Why Your Job Search Isn t Working

Why Your Job Search Isn t Working Why Your Job Search Isn t Working 6 mistakes you re probably making and how to fix them I t s easy to think that your lack of success in finding a new job has nothing to do with you. After all, this is

More information

Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum

Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum Loan to Own Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum Table of Contents Page Lending Terms 1 Consumer Installment Loan Versus Rent-to-Own 2 Federal Trade Commission

More information

How to make the most of ebay Motors.

How to make the most of ebay Motors. autorevo.com 2013 Guide #06 How to make the most of ebay Motors. an ebay Motors guide by AutoRevo. Boost exposure and get more leads... With ebay Motors, even the smallest local dealer with a handful of

More information

Income For Life Introduction

Income For Life Introduction Income For Life Introduction If you are like most Americans, you ve worked hard your entire life to create a standard of living for yourself that you wish to maintain for years to come. You have probably

More information

Starting a business. Is running a business for you?

Starting a business. Is running a business for you? Starting a business 01 Starting a business Starting your own business will be one of the most exciting and challenging things you will ever do. To be successful, you ll need to be well-prepared for what

More information

The buying process a summary

The buying process a summary The buying process a summary 01 - Establish your budget 02 - Mortgage offer in principle 03 - Instruct a solicitor 04 - Register with all the estate agents in the area 05 - Find a property 06 - Mortgage

More information

Filename: P4P 016 Todd: Kim: Todd: Kim:

Filename: P4P 016 Todd: Kim: Todd: Kim: Filename: P4P 016 Todd: [0:00:18] Hey everybody, welcome to another edition of The Prosperity Podcast, this is No BS Money Guy Todd Strobel. Once again, we have my cohost, bestselling financial author

More information

TAX DIRECTIONS. What you need to know about GST

TAX DIRECTIONS. What you need to know about GST TAX DIRECTIONS Information to help your business Information to help your business What you need to know about GST IR 214 April 2014 IR 214 June 2007 This brochure gives you an overview of GST (goods and

More information

Prospecting Scripts. 2 keys to success in Real Estate

Prospecting Scripts. 2 keys to success in Real Estate Prospecting Scripts 2 keys to success in Real Estate 1. TALK TO PEOPLE 2. ASK THE RIGHT QUESTIONS 1. Door-knocking or cold calling properties around a new listing (inviting them to a property preview)

More information

focused on me Vehicle Financing Guide

focused on me Vehicle Financing Guide focused on me Vehicle Financing Guide Table of Contents Lease or Finance? 1 Cost of Buying a Vehicle 2 What you need to know about Financing 2 Understanding Vehicle Loan Financing Basics 3 Options for

More information

SOME IDEAS THAT MAY HELP WITH. Credit Problems and How to Get Help

SOME IDEAS THAT MAY HELP WITH. Credit Problems and How to Get Help 66308 1083 9/9/04 3:03 PM Page Cov1 SOME IDEAS THAT MAY HELP WITH Credit Problems and How to Get Help 66308 1083 9/9/04 3:03 PM Page Cov2 Table of Contents Do you have a credit problem? 1 Minor credit

More information

Tips for Buying or Selling Your Home

Tips for Buying or Selling Your Home mortgage Taxes HOME OWNERSHIP Credit Property Tips for Buying or Selling Your Home REAL Estate Agent Loans Home Inspection CURB Appeal TABLE OF CONTENTS Introduction... 3 Buying a Home... 3 Are You Ready

More information

Home Buyer s. Helpful Information to Find and Finance Your Next Home. www.colonialnationalmortgage.com 1-800-937-6001

Home Buyer s. Helpful Information to Find and Finance Your Next Home. www.colonialnationalmortgage.com 1-800-937-6001 Home Buyer s H A N D B O O K Helpful Information to Find and Finance Your Next Home www.colonialnationalmortgage.com 1-800-937-6001 The information herein is subject to change and is not an offer to extend

More information

How to open a bank account

How to open a bank account 2 Easy read How to open a bank account Self-directed support: an Easy Read guide to getting the help and support you need Self-directed support: an Easy Read guide to getting the help and support you need

More information

GET THE CAR YOU LOVE THE SMART AND EASY WAY

GET THE CAR YOU LOVE THE SMART AND EASY WAY GET THE CAR YOU LOVE THE SMART AND EASY WAY What is Novated Leasing? NOVATED LEASING MADE EASY A Novated Lease is a three way agreement between you, Custom Fleet and your employer. It can potentially save

More information

Congratulations You ve just taken the first step to getting the best buy for your insurance dollar!

Congratulations You ve just taken the first step to getting the best buy for your insurance dollar! Stephen A. Bazzano Author, Consultant, Licensed Insurance Agent, Contractor Insurance Specialist Congratulations You ve just taken the first step to getting the best buy for your insurance dollar! Dear

More information

Equity Value, Enterprise Value & Valuation Multiples: Why You Add and Subtract Different Items When Calculating Enterprise Value

Equity Value, Enterprise Value & Valuation Multiples: Why You Add and Subtract Different Items When Calculating Enterprise Value Equity Value, Enterprise Value & Valuation Multiples: Why You Add and Subtract Different Items When Calculating Enterprise Value Hello and welcome to our next tutorial video here. In this lesson we're

More information

LESSON 1 WHY STUDY THE STOCK MARKET?

LESSON 1 WHY STUDY THE STOCK MARKET? LESSON 1 WHY STUDY THE STOCK MARKET? INTRODUCTION This lesson is designed to spark student interest in the stock market and help the teacher learn what students already know or believe about the stock

More information

TALKING POINTS COLLEGE STUDENTS PRESENTED BY JEAN CHATZKY AND PASS FROM AMERICAN EXPRESS SM

TALKING POINTS COLLEGE STUDENTS PRESENTED BY JEAN CHATZKY AND PASS FROM AMERICAN EXPRESS SM INTRODUCTION Give your kids a heads-up that tonight you re going to make some time to talk about money. It won t take all night, but they should clear their schedule. If your kid is away at college, and

More information