Once you have a business price, how do we divide it up among the 'stuff?'- How to buy a business, how to sell a business

Greg sent me a great question; Once we have a price for the business, how do we break down that price among the different things being bought?

Great question.  We call this the price allocation and it’s necessary to do when you buy or sell a business as an asset sale.

The way that you allocate the purchase price can have direct tax consequences for the selling entity at the time of sale... or for the buyer in the years to come after the purchase.

It’s often one of the facets of the negotiation that the buyer and seller don’t realize they need to get figured out sooner rather than later.

I’ve seen the price allocation cause delayed closings and has almost stopped a deal.  Especially if it’s left until the last minute. Learn more about how it can affect you in my new video.

Watch the video here: https://youtu.be/Zzt7xznT7fU

Learn more about price allocation and how to buy businesses at www.BusinessBuyerAdvantage.com where you can access tons of information and enroll in my online course.

Student satisfaction from my program is 100%.  Everyone who’s taken it is happy.  How do I know? It features a 30 day money-back guarantee which nobody has ever asked for.  There’s no risk at all for you to enroll.  You can see how my whole buyer system works in this video from a few weeks ago: https://youtu.be/ooixMSaFf6Y

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I’m coming to Toronto on May 10, 2017.  Seats are already filling up.  Find my current and future live events here: http://davidbarnett.eventbrite.ca .    

The Centre for Entrepreneur Education and Development in Halifax will be having me do two workshops in Halifax, NS on April 10.  Visit http://www.CEED.ca for more info.

Thanks and I’ll see you next time.