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Started By
Message
re: Many Baby Boomer businesses going for sale in the next 5-10 years.
Posted on 8/1/23 at 9:27 pm to LSUFanHouston
Posted on 8/1/23 at 9:27 pm to LSUFanHouston
That happens
I know of a few where the owner died before selling and it was obviously not an optimal outcome for the family figuring out what to do afterwards.
I know of a few where the owner died before selling and it was obviously not an optimal outcome for the family figuring out what to do afterwards.
0
Posted on 8/1/23 at 9:28 pm to LSUFanHouston
quote:
Seeing a lot of this in the CPA firm world. Especially the one owner firms. What’s starting to happen is they are dying and the wife is selling them for like 10% of what the asking price was before death.
It’s happening in tons of industries. I only see a bunch of energy and construction industry deals but I helped a friend of the family with his seafood business recently and it’s all the same at the end of the day. People work hard and build something but too much value is in them and not the enterprise. The only way that business retains that value is for the person to stay and that makes a sale next to impossible at anything other than barebones valuations.
Posted on 8/2/23 at 3:10 pm to CleverUserName
quote:
It won’t have a tangible financial value from that. It would be intangible.
And “goodwill” is not a made up term thrown out there to explain away a phenomenon. It’s GAAP accounting. You will see it in the financials of practically all major corporations that service the public
And if the business you would look to buy is very established and has no goodwill, you wouldn’t want it anyway.
I mean.. what’s worth more. A McDonald’s restaurant franchise or a mom and pop burger place in an expensive building?
According to most on here… they should be the same.
Wish you had led with this one given I'm a layman in this arena. I was working under the layman's definition of goodwill. A quick search online for GAAP was enlightening, and goodwill has a very specific meaning in the context of this thread.
The question I have is how much difference in the value of goodwill is there between the seller and buyer? How does this get defined adequately to arrive on a final price?
Posted on 8/2/23 at 3:23 pm to CleverUserName
quote:Lighten up Poindexter.
Well. No. It’s not. Public companies are required to keep goodwill accurate, review it once a fiscal year, and report any impairment. Per Sarbanes-Oxley.
Posted on 8/2/23 at 3:26 pm to imjustafatkid
quote:
If you're buying a client-based business
I get what you’re saying about losing part of the book in a transition, but at the root, aren’t all businesses other than commodities production, client based?
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