SMB Archives

Choosing the Best Entity Structure for Your Small Business

Leave a Comment / ETA, SMB, Tax / Chris Barrett

Struggling to decide the best entity structure for your small business? This guide breaks down the benefits and tax implications of C-Corps, Partnerships, S-Corps, and Sole Proprietorships to help you make an informed decision. The right entity structure can significantly impact your business’s tax obligations, growth potential, and overall operations. Let’s dive in and explore which option best fits your needs.

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Guide to Beneficial Ownership Information Reporting

Leave a Comment / SMB / Chris Barrett

Back to Learning Center Introduction Beneficial Ownership Information Reporting begins January 1, 2024 and most companies in the United States will need to report information about the owner’s and leaders of the organization. These people are referred to as beneficial owners. This information must be reported to the Financial Crimes Enforcement Network (FinCEN). In this guide

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What is a Proof of Cash?

Leave a Comment / ETA, SMB / Chris Barrett

Back to Learning Center Introduction In business acquisitions, it is paramount that you fully vet the business you are buying. Among the various tools available, the Proof of Cash stands out as one of the most important analysis to ensure the accuracy of financial records. For acquisition entrepreneurs, effectively understanding and using Proof of Cash

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Sell-Side Quality of Earnings Report and 6 Reasons to Get One

ETA, SMB / Chris Barrett

When selling a small business, two crucial factors significantly impact the purchase price:

Earnings:
The amount of earnings your company generates is a key determinant, typically measured as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). A sell-side quality of earnings analysis presents an opportunity to enhance both the quantity and quality of these earnings.

EBITDA can be increased by identifying adjustments to your financials that a new buyer should not anticipate incurring. This includes one-time expenses or events, personal expenses that the owner ran through the business, or the normalization of recent changes to business operations.

When the buyer is performing due diligence they are going to be looking for adjustments that will favor them. However, they are not going to point out to you adjustments that will be in your favor it’s up to you to do that.

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A Guide to Search Funds In ETA

ETA, SMB / Chris Barrett

If you’re an aspiring entrepreneur but don’t think a startup is right for you, a search fund could be your answer.

Entrepreneurship through acquisition (ETA) is a compelling pathway to realize your business ownership goals and own an established business. Search funds provide the financial vehicle to make that dream a reality.

In this article, we’ll provide an overview of search funds, contrast different models, how to start one, and shed light on the appeal, challenges, and trends surrounding them.

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How to Share your QuickBooks File with a Buyer

SMB / Chris Barrett

Introduction Once you’ve gone under LOI with a potential buyer for your business the buyer will begin to conduct their due diligence. Sharing access to your QuickBooks file can make this process much faster and easier for bother parties. In this article we’ll be showing you just how to do that. QuickBooks Desktop When sharing

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DSCR Calculator And Guide For Acquisition Entrepreneurs

SMB / Chris Barrett

Back to Learning Center Introduction One of the primary financing options for Entrepreneurship through Acquisition (ETA) is a Small Business Administration (SBA) loan, which is tailored to meet the specific debt needs of small businesses. As your business acquisition specialist, we at Midwest CPA have simplified what the Debt-Service Coverage Ratio (DSCR) is and how

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What Is A Quality Of Earnings Report?

Leave a Comment / SMB / Chris Barrett

Introduction The term “QoE” pops up often in business acquisition, but what is a quality of earnings report? When acquiring a business discerning the genuine financial health of a potential acquisition is a key part of good due diligence. This is the role of a Quality of Earnings report. The Quality Of Earnings Report A

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9 Steps On How To Buy A Business

Leave a Comment / SMB / Chris Barrett

Back to Learning Center Introduction So, you’re in the market and wondering how to buy a business? Great choice! Acquiring an existing business can offer you immediate cash flow, a proven track record, and a faster path to profitability. As a specialist acquisition CPA firm, we’ve seen the benefits for our clients. In this post,

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Numbers Don’t Lie: The Crucial Role of Financial Due Diligence

Leave a Comment / SMB / Chris Barrett

Introduction Acquiring a business offers the potential for significant gains, benefiting not only you but your family as well. However, there is also a substantial amount of risk that acquisition entrepreneurs are taking on. If you’re buying a business with a personally guaranteed loan, failure could decimate your financial future. That is why performing sufficient

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SMB

Choosing the Best Entity Structure for Your Small Business

Guide to Beneficial Ownership Information Reporting

What is a Proof of Cash?

Sell-Side Quality of Earnings Report and 6 Reasons to Get One

A Guide to Search Funds In ETA

How to Share your QuickBooks File with a Buyer

DSCR Calculator And Guide For Acquisition Entrepreneurs

What Is A Quality Of Earnings Report?

9 Steps On How To Buy A Business

Numbers Don’t Lie: The Crucial Role of Financial Due Diligence

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