Newsletter Articles

Using a 13-Week Cash Flow Forecast in Uncertain Times

[caption id="attachment_9159" align="alignright" width="175"] By Jennifer Mailhes, Managing Director, Doeren Mayhew Capital Advisors[/caption] Business disruptions like the COVID-19 pandemic, supply chain issues, or economic uncertainty can happen at any given moment, and a concern that often arises for business owners is how to continue to properly manage their cash flow during uncertain times.  When a company is experiencing a period of uncertainty, it 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, ...

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Thinking of Selling Your Business Soon? Here Are Some Key Buyer Considerations

[caption id="attachment_9159" align="alignright" width="175"] By Jennifer Mailhes, Managing Director[/caption] Deciding if it’s the right time to sell your business is never an easy decision to make, but is a consideration to always keep top of mind should an unexpected opportunity arise. As investment bankers, we often see business owners approached by a potential buyer. However, the business is not prepared to provide key information buyers are immediately hoping to see. In today’s uncertain economic climate, we are seeing and expect to see more unsolicited offers from buyers looking to make strategic acquisitions. What Buyers Want to Know To help ensure you’re prepared should ...

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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 ...

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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 ...

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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 ...

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