TITLE

TRAPS TO AVOID WHEN PURCHASING A BUSINESS

AUTHOR(S)
Johnson, Gene H.; Lindbeck, Rudolph S.; Winston N. McVea Jr.
PUB. DATE
January 1994
SOURCE
Journal of Financial Planning;Jan1994, Vol. 7 Issue 1, p38
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
When a client is considering buying a small business, the financial planner must alert the client to potential traps that can distort the true value of the business. Examples in this article include overreliance on misleading tax returns, unenforceable noncompetition agreements, hidden workers' compensation claims, and a variety of little "scams." Potential purchasers and their advisors need to perform a thorough investigation and analysis of the target business. Reasonable care in the exercise of the investigation and valuation of a business is important, though it cannot guarantee that all problems will be avoided.
ACCESSION #
5558207

 

Related Articles

  • IFA EDGE. Heath, Garry // Money Marketing;5/20/2004, p34 

    Looks on factors affecting small independent financial advisers in Great Britain. Liability for previous advice; Industry consolidation; Government regulation of the industry.

  • Strategies for Family Business Transitions. FITTS, JAMES A.; WEEKS, JOHN; ROWE, MARSHALL G. // Financial Executive;Jul2012, Vol. 28 Issue 6, p21 

    The article examines succession planning for family-owned business enterprises. The difficulties posed both for business enterprises and families by the succession process are discussed. The role of advisers in the succession planning process and succession itself is examined, including...

  • How small ad cos. can work to lure big agency buyers. Vence, Deborah L. // Marketing News;10/14/2002, Vol. 36 Issue 21, p4 

    The article reports that larger advertising agencies have been swallowing up small- and mid-size firms since the 1980's in order to help offer wider variety of marketing services to clients. With the era of the mid-size independent agency virtually gone, the primary targets for acquisitions are...

  • A Defining Trend Takes a Breather As First Quarter M&A Draws to a Close. Cohen, Judy Radler // Investment Dealers' Digest;04/17/2000, Vol. 66 Issue 16, p16 

    Presents information on mergers and acquisitions in the United States during the first quarter of 2000. Volume of deals by industry; Top ten mergers which are United States-targeted; Top ten mergers which are Europe-targeted; Top ten completed mergers; Top advisers on global transactions; Top...

  • Martin Tilley: Don't let firms miss out on cash shelters. Tilley, Martin // Money Marketing (Online Edition);11/30/2015, p1 

    The article reports on small- and medium-sized enterprise (SME) owners taking business risks in the pursuit of growth in Great Britain. Accountants, tax planners and advisers battle SME owners for sheltering away these large earned profits into pension schemes. However, the introduction of the...

  • Marketing an Independent Practice: Keys to Success. Buttell, Amy E. // Journal of Financial Planning;Mar/Apr2009 Practice Management, p10 

    The article discusses efforts to successfully market independent financial planning practices. Individuals who work for large brokerage firms are used to following orders and not having to worry about how clients will hear of them, the article indicates. Topics include clients that have...

  • High Cost of Keeping Secrets. FOSS, KIMBERLY // Financial Planning;Aug2014, Vol. 44 Issue 8, p23 

    The author looks at the undermining cost of classified financial transactions in a small family business. She tells the story of one of her clients who ran a fifth-generation pawnshop to illustrate how secret spending affected the company's value and created a rift in her client's family. The...

  • Bullish Expectations For European M&A. Marshall, Jeffrey; Heffes, Ellen M. // Financial Executive;Jul/Aug2006, Vol. 23 Issue 6, p10 

    The article discusses the research study by Greenwich Associates Inc. regarding merger and acquisitions of companies in Europe. The study shows that 60 percent of the large European companies are engaged in the services of a merger & acquisition advisor in 2005. According to Greenwich Associates...

  • MBIA merges with Pennsylvania's 1838. Ulick, Jake // Bond Buyer;06/23/98, Vol. 324 Issue 30420, p39 

    Focuses on MBIA Inc.'s merger with Pennsylvania-based firm, 1838 Investment Advisors. Creation of a holding company with $21 billion in assets under management; Move aimed at strengthening MBIA's first place position as money manager among bond issuers.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics