I’d like to share with you the story of Sam.
For years, Sam has been a client of Gift & Associates for his personal tax returns and tax consultation on his retirement accounts.
Sam is your typical neighbor. He is married with two children and works as an Operations Manager for a local company.
One spring afternoon Sam gave me a call and wanted to schedule a meeting to discuss a potential business opportunity and career change. Our story begins here…..
Buying a Business
Sam got a hot tip! A local sports bar in town was up for sale. His long-time declaration of, “One day, I’m gonna own a big Sports Bar!” resonated in his wife’s mind.
He sat before me looking for advice on how to evaluate the decision to buy this business and what he needed to think about before leaving his current position and working for himself.
No easy answer, no short cuts, but anything worth doing…
I started with a complete financial review of the business with Sam. This included reviewing the past 3 years income tax returns and financial statements. Sam also inquired about creditors or taxing agencies that may have had liens on any assets.
The financial review did not turn up any skeletons so I turned Sam’s attention to the capital his business would need and the capital his family would need during this transition.
Once Sam and his family became immersed in the concept, I then began discussions on financing the purchase, tax strategies and an asset sale vs. a stock sale. Some of these topics will be discussed in future blogs.
TO BE CONTINUED…
