Newsletter Articles

Do’s and Don’ts Once a Letter of Intent is Signed

[caption id="attachment_3832" align="alignright" width="175"] By Jennifer Mailhes, Managing Director, Doeren Mayhew Capital Advisors[/caption] When it comes to the merger or acquisition of your business, the letter of intent (LOI) plays a critical role in the success of the overall transaction. Although LOIs provide a framework of the deal, it does not mean it is a closed agreement once signed, and internal and external factors can often derail the M&A process. Understanding LOIs An LOI provides an outline of the initial agreement between the buyer and seller, including the confidentiality, structure of the proposed transaction (such as whether it is an asset or stock ...

READ NOW

What Increases to Capital Gains Tax Could Mean for Your Business Sale

[caption id="attachment_4830" align="alignright" width="175"] By Richard Beamish, Managing Director – Doeren Mayhew Capital Advisors[/caption] With a new administration at the helm in the Oval Office, business owners contemplating selling their business in the near future will need to consider the impact of President Biden’s proposed increases to the capital gains tax before making any moves. Since the early 1980s, the long-term capital gains tax has held its position at 20%, which was most recently retained by the Tax Cuts and Jobs Act (TCJA) in 2017 for income over $434,550. Complementing the preferential tax rate on long-term capital gains in the TCJA was ...

READ NOW

Using a 13-Week Cash Flow Forecast in Today’s COVID-19 Environment

[caption id="attachment_3832" align="alignright" width="175"] By Jennifer Mailhes, Managing Director, Doeren Mayhew Capital Advisors[/caption] Business disruptions like the current COVID-19 pandemic can happen at any given moment, and an immediate concern that often arises for business owners is how to continue to properly manage their cash flow during these uncertain times. When a company is experiencing a period of uncertainty, they should consider using a 13-week cash flow forecast as a helpful tool. It can be used to help determine where to cut costs, develop ways to plan around challenges, help understand the impact of delayed collections and continued costs, and much more. ...

READ NOW

Exploring the Many Facets of an ESOP

Like many business owners, you want to retire someday. In addition, just about every business is looking for ways to improve employee engagement and retention. One ambitious and somewhat complex way to plan ahead, while also adding a benefit to employees, is by offering an employee stock ownership plan (ESOP). Establish a Trust An ESOP is a type of employee benefit plan, similar in many ways to a profit-sharing plan. To set up an ESOP, a company establishes a trust fund and contributes either new shares of its own stock or money to buy existing shares. The shares in the trust are ...

READ NOW

Do’s and Don’ts of Real Estate in Your M&A Deal

[caption id="attachment_2833" align="alignright" width="175"] By Jennifer Mailhes, CPA - Managing Director[/caption] Owning and controlling real estate is often viewed as favorable in a merger or acquisition, but how it’s handled can either make or break your deal. On the upside, owning real estate can provide the seller transaction benefits such as offering flexibility in how it’s treated, using it as an option to help finance part of the deal or transferring wealth if planned in a timely manner. However, real estate can also be viewed as a liability if it is not being properly managed. Common real estate pitfalls often seen in the ...

READ NOW