At the Garacey Group, we believe in personalized, professional service with a high level of client interaction. We have a myriad of credentials including certifications in accounting, business valuation and machinery and equipment appraisal. We have the ability to assess the health of a business, its value in the market and work with clients to bring reality to the table.
Acquisitions and Sales
For many privately-held business owners, their business is their major asset for financial security and Garacey Group has the experience and credentials to help entrepreneurs maximize their investment.
Acting as an intermediary in a business transaction, our philosophy is to work with both a buyer and a seller to make a deal happen that is in the best interest of both parties. Just listing a business for sale and waiting for a buyer to come along is not the course of action we will take.
Understanding the true market value of your current business or potential acquisition is a key component to a successful transaction. An improperly priced business brings multiple difficulties to the table including unrealistic expectations, difficulty in attracting qualified buyers and difficulty in financing.
Garacey Group’s pricipals have 15+ years experience in valuing privately-held companies and will assure that business pricing is reasonable in order to effect a successful transaction for both seller and buyer.
Small businesses have greater flexibility than publically held companies in how the financial aspect of their business is run. Typically a closely held company will take certain liberties with respect to deducting expenses that may not be completely business related in order to reduce their tax liability. Additionally, the tax treatment of certain expenditures and purchases may be tax motivated and an aggressive position thus taken.
Businesses typically are valued based on the operating results experienced by the business in addition to the current market values of their fixed assets. Earnings are key in this respect. Tax motiviated treatment typically provides for an understatement of earnings and thus a lower value.
Through the process of working with a seller and helping him or her define specific goals, Garacey Group can analyze positions taken by a business for tax purposes and suggest alternative ways to increase the value of the business prior to offering the business for sale. We call this pre-sale positioning. We can promote strategies to increase the profit of the business in several different ways.
Some of the unique abilities of Garacey Group include the ability to assess the tax consequences a seller and buyer will experience in an acquisition or sale of their business. We have not ever met a client who likes to be surprised with a large tax bill that has been cemented in place because of the tax affects of a transaction were not properly analyzed BEFORE the transaction was executed. After the fact tax planning will likely result in devastating financial results. Let us help you avoid that trap.
Sellers and buyers typically have competing interests when it comes to allocating the purchase price of a business to its respective components. Some leeway exists in doing so, but there are many aspects that must be considered in developing the allocations.
It is those allocations that will affect the future operating results for the buyer. A buyer should be concerned with these tax affects looking forward because the net cash flow to the buyer is of paramount importance.
Currently, there are several forms of legal entity that can be formed to operate a business. There are benefits and detriments to all of them so it is important to identify your specific goals and then select the appropriate entity form to help you achieve them. Garacey Group can walk with you through the process of entity selection and help advise which form of entity would help you reach your specific growth, tax and exit goals.