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Just Elementary, Inc. » Entries tagged with "Goodwill"

Difference Between Goodwill & Blue Sky in regards to business valuations

April 21st, 2014 | Comments Off on Difference Between Goodwill & Blue Sky in regards to business valuations

Difference Between Goodwill & Blue Sky in regards to business valuations

The terms Goodwill and Blue Sky are often used interchangeably. A primary reasons for this is that it is assumed that they are the same thing.  For practical purposes, in regards to business valuations, there is a distinction between the two terms. Goodwill: Let’s start with Goodwill.  A conventional definition of Goodwill would be the amount of money paid for an on-going business beyond its book value.  A simple example is a business that has $600,000 in tangible … Read entire article »

Filed under: Business Valuation

Eminent Domain – Getting the Right Value and Knowing Your Rights

March 26th, 2013 | Comments Off on Eminent Domain – Getting the Right Value and Knowing Your Rights

Eminent Domain – Getting the Right Value and Knowing Your Rights

Eminent Domain is a scary sounding proposition.  Your property and/or your business can be shut down and taken away from you against your will.  The real estate has value, but what about the business located at the real property?  How about the value of the business?  What are your options?  How can you make sure you get a Fair Market Price for the business?  Courtesy of the Partners at Nossman, LLP, a California Eminent Domain … Read entire article »

Filed under: Business Valuation

Purchase Price Asset Allocation

March 10th, 2011 | Comments Off on Purchase Price Asset Allocation

Purchase Price Asset Allocation

In buying or selling any business, franchise or not, both the buyer and seller have to agree upon an Purchase Price Asset Allocation.   What exactly is a Purchase Price Allocation? When buying a business as an Asset Sale transaction, the purchase price needs to be divvied up and allocated to all of the assets being transferred from the seller and buyer. Examples of Assets that need to be allocated: Franchise Agreement (intangible) Goodwill (intangible) Customer List (intangible) Covenant Not to Compete (intangible) Trade … Read entire article »

Filed under: Franchises

1031 Exchange for A Business?

January 24th, 2011 | Comments Off on 1031 Exchange for A Business?

1031 Exchange for A Business?

Business owners often ask us, and the answer is Yes, a 1031 exchange for a business is possible.  The reason business owners ask if it is possible, is they often want to exchange a business for an investment property. But, they are very rare to pull off for many reasons.  However, the exchange must be like kind, so business assets can not be exchanged for an Industrial property, or any other real property for that matter. Businesses … Read entire article »

Filed under: Business Tips