Business Blog: Technology Issues in Mergers and Acquisitions: Paper vs. Software — Using Business Management Software to Become the Optimal Seller
on September 12, 2019
Preparation is essential to securing the best deal possible when selling any business, especially considering the fact that most buyers prefer to inherit businesses that do not require a significant investment into infrastructure....
Business Blog: Beware of Unrelated Business Taxable Income
By Jarman J. Smith on August 26, 2019
Many nonprofit organizations are recognized by the federal government as being tax-exempt; therefore, taxes are generally one of their lowest business concerns. However, even tax-exempt organizations may be liable for tax on any activities that generate unrelated business income. According to the Internal Revenue Service (IRS), unrelated business income is any income realized from a trade or business regularly carried on by an organization, which is not substantially related to furthering the purpose of the organization's tax exemption....
Business Blog: Representation and Warranty Insurance in Corporate Transactions
on August 19, 2019
Often conflicts that arise from a transaction are commonly due to a seller's breach, or alleged breach, of a representation or warranty contained in the purchase agreement. Typically, a seller will indemnify a buyer for any breach of the representations and warranties made by the seller. Depending on the transaction, the seller may be required to place a certain amount of the purchase price into escrow for a period of time to cover any of its indemnification obligations. However...
Business Blog: Due Diligence - From a Buyer's Perspective
on August 12, 2019
Due diligence is a process by which the buyer is able to investigate and analyze the assets, liabilities, records, financials, and customers of a business to ensure that what is being acquired aligns with the buyer's expectations. This is important for many reasons, including protecting the buyer from misrepresentations and omissions of fact regarding the purchased assets....
Business Blog: Transaction Structuring - Asset Deal v. Equity Deal
on August 5, 2019
Buying or selling a business is an exciting yet onerous time for both buyer and seller. The deal process will be filled with important decisions such as: How much risk should we assume? Is the target company in an industry I want to enter? What is the best method to value the target company? And the list goes on....