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Willard Michlin By: Willard Michlin, CPA I remember growing up hearing from sellers the following sales pitch for why I should pay them top dollar. “You can get fresh oats for a fair price or you can get oats that have gone through the cow for a lot cheaper.” The other one I heard … (Click here to continue reading “Should you knowingly overpay for a business?”)
Willard Michlin By: Willard Michlin, CPA This article is written as a general discussion on the subject of Due Diligence and how to evaluate a small business for purchase. It is for informational purposes and not intended to be a definitive guideline for your exact situation. You should consult the appropriate professionals with regards … (Click here to continue reading “Introduction How to Evaluate the True Worth of a Business:Due Diligence 101–or What You Don’t Know Can Kill You!”)
Willard Michlin By: Willard Michlin, CPA Recently a very excited business buyer was ready to enter escrow on a Quiznos™ Sub located in Oxnard, California. First, the seller claimed that she had a net profit of $150,000. Because her business was so very profitable, she was demanding $450,000 for the business and was not … (Click here to continue reading “Part#6 How to Evaluate the True Worth of a Business:Four Easy Danger Signs that Tell You when a Business Owner is Lying”)
Willard Michlin By: Willard Michlin, CPA 30% of all business buyers have been through the process before and therefore have learned, through experience, what they should do and not do. They graduated from the very expensive but enlightening “School Of Hard Knocks.” I myself learned how to become a business broker, hard money loan … (Click here to continue reading “Part#8 How to Evaluate the True Worth of a Business:Mentoring in How to Buy a Business”)
Willard Michlin By: Willard Michlin, CPA It has been said that you cannot judge a man until you have walked a mile in his shoes. Over the years I have done all four functions when someone asked me to help them. But since setting up Due Diligence Assistance for buyers six months ago I … (Click here to continue reading “Part#17 How to Evaluate the True Worth of a Business:The Differences between a Business Appraiser, CPA, Due Diligence Expert and a Business Evaluator”)
Willard Michlin By: Willard Michlin, CPA Everyone knows that when you buy a business you need to audit or confirm the financials to see where the seller is fibbing or not fibbing. An appraisal of a business’s worth should not be just based only on the financials, which is usually what is used. What … (Click here to continue reading “Part#9 How to Evaluate the True Worth of a Business:Should You Spend the Time and Money to Evaluate a Business Before Buying One?”)
Willard Michlin By: Willard Michlin, CPA Due Diligence is a very misunderstood word to many. Some people think that due diligence is the same as an appraisal. They are totally different. Lets look at the definition of each. Definition of Due Diligence: The phrase is composed of two words. “Due” which the dictionary defines … (Click here to continue reading “Part#10 How to Evaluate the True Worth of a Business:Why Do You Need Due Diligence?”)
Willard Michlin By: Willard Michlin, CPA Small business owners, 95% of the time, intentionally do not keep accurate records. This is to prevent the IRS and prospective business buyers from seeing the true condition of the company. These fibs or lies are to either understate income or profit for the IRS, or to overstate … (Click here to continue reading “Part#12 How to Evaluate the True Worth of a Business:Why Do You Need a Due Diligence Expert?”) |
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