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The West Hartford office serves the accounting, tax and business valuation needs of successful entrepreneurs and business owners to achieve the financial and business goals they seek. This office specializes in tax planning and consulting services; as well as business valuation services, but our “Next Level of Service” goes beyond the simple compliance aspect to providing the counseling and solutions needed to succeed in today’s competitive economic environment.
UHY Advisors and UHY LLP (“UHY”) announced that they will add to their portfolio in the Northeast with the acquisition of the professional services firm Pratesi, Salemi & Company LLC and the valuation firm Brentmore Valuation Advisors, located in West Hartford, Connecticut. Both firms will operate under the UHY banner effective November 4, 2016.
The prudent businessperson is always cautious when he or she is offered a great bargain on real estate, equipment, a business interest, or some other property that just might be too good to be true. Even in connection with ordinary business transactions but especially when considering taking over a property or business that in a bargain because of some legal wrinkle, you should consider whether there might be some tax liability attached to the bargain that could come back to haunt you down the road.
The IRS has rules that limit the deductibility of expenses and losses from a hobby or activity not engaged in for profit. If the IRS determines that an activity is not profit-driven, deductions from the activity are limited to the amount of income the activity generates. Losses from such activities cannot be used to offset other income, such as salary or investments.
National Taxpayer Advocate Nina Olson, in a recent report to Congress, urged the IRS to change its culture from one that is enforcement-oriented to one that is service-oriented. Such a change, Olson provided, would create an environment that encourages taxpayer trust and confidence. In the report, Olson also highlighted key areas for tax simplification and the top-10 most litigated tax issues.
First-time business sellers often must negotiate an M&A deal with far more experienced buyers. If your buyer already has several acquisitions under its belt, you could be at a competitive disadvantage. Experienced M&A advisors, who can fight on your behalf for the best price and deal terms, are essential to overcoming this strategic disadvantage.
The 2017 tax filing season launched on January 23. The IRS predicted a few speedbumps for taxpayers, especially for taxpayers who file early in anticipation of early refunds. The agency expects to receive more than 150 million individual income tax returns. The vast majority of individual income tax returns will be filed electronically and the IRS has extra safeguards in place to protect taxpayers from cybercrime.
Have you set a goal for your company this year?
If you’re like most business owners, you’re striving for an increase in your annual sales. It’s natural to want your company to be bigger because that’s what everyone around us seems to celebrate.
The change in administrations in Washington has generated a new focus on tax reform. The White House and lawmakers from both parties have discussed tax cuts, infrastructure spending, and more to encourage economic growth. However, the details of their plans have yet to be revealed. Tax reform legislation may be unveiled in February.
Whether you want to sell your business next year or a decade from now, you will have two basic options for an external sale: the financial or the strategic buyer.
If you have considered selling your business of late, you may have been disappointed to see the offers a business like yours would garner from would-be acquirers.
Becoming wealthy may not be your primary goal, but if it is, there is a reasonably predictable way to get rich in America.
If you’ve ever obtained a business valuation for a client, you know that the final value usually includes several components — including tangible and intangible assets. The term “intangible assets” often triggers thoughts.
Both sellers and buyers must handle a torrent of details during an M&A deal closing, such as getting permissions from a host of parties and transferring various operating permits. If you’re in a transaction’s early stages, you might not realize how much paperwork and communication will be necessary to achieve an ownership transfer. The earlier that the parties prepare for this time-consuming task, the better.
Under-performing companies present special valuation challenges. Financial distress adds an element of risk, which lowers value. So, compared with healthy companies, distressed businesses tend to have higher discount rates (under the income approach) and receive downward adjustments to pricing multiples (under the market approach), and sometimes don’t have past or projected earnings that contribute to the company’s value (under the cost approach). Or valuators might select guideline companies with similar financial performance or a proximate transaction date to avoid using deals that occurred during better economic times.
There are times when putting a business up for sale is the best — or only — next step. All owners need to recognize the signs that they’ve reached this expiration date so they can properly prepare for a sale and start building the case for a reasonable sale price.
Phone: 860 519 1726
Fax: 860 519 1982
18 North Main Street
West Hartford, CT 06107