{"id":124039,"date":"2024-04-01t12:01:26","date_gmt":"2024-04-01t16:01:26","guid":{"rendered":"\/\/www.g005e.com\/?p=124039"},"modified":"2024-08-29t23:53:32","modified_gmt":"2024-08-30t03:53:32","slug":"want-to-merge-six-steps-to-take","status":"publish","type":"post","link":"\/\/www.g005e.com\/2024\/04\/01\/want-to-merge-six-steps-to-take\/","title":{"rendered":"want to merge? six steps to take"},"content":{"rendered":"
<\/strong><\/p>\n bonus: key considerations in evaluating a practice continuation agreement.<\/strong><\/p>\n by ed mendlowitz<\/i> question: <\/b>what i should do about merging? i need a specific answer.<\/b><\/p>\n more: <\/b>how to raise your rates<\/a> | courting a client? don\u2019t give too much away for free<\/a> | nine tips for a healthier tax season<\/a> | fifteen strategies for first-time supervisors<\/a> | measure knowledge gaps (then close them)<\/a> | should you offer financial services?<\/a> | ready to retire? selling your practice is no strategy<\/a> | 20 things you need for a business valuation<\/a> response:<\/b> i can\u2019t give you an easy answer. i can give you a process to follow that should provide an answer. actually, this works pretty well and i\u2019ve gotten good feedback from many colleagues. i\u2019ve also rethought it many times, and still think this is the way to go about it.<\/p>\n <\/p>\n decision-making process for considering a personal long-term strategy<\/strong><\/p>\n considerations in pursuing a practice continuation agreement<\/b><\/p>\n the big picture, and urgency, is the necessity of getting an agreement that covers death and disability of the co-owners. for that, a payment amount and terms need to be agreed to (understanding that either party could be on either end). to accomplish this you need to arrive at a number that you both think is reasonable. not a number you would sell the business for, value a transfer to a successor or family member, to fund a retirement, or for the myriad reasons stock would be transferred. the purpose of this agreement is to avoid conflicts between the remaining owners and the family of the deceased or disabled owner and to allow the remaining owners a reasonable way to make the payments.<\/p>\n a simple method is for the partners to agree on an amount and terms they would be willing and able to pay and would feel comfortable with their family receiving. a second way is to work with your cpa, attorney or a valuation specialist to assist in the determination of the amount, terms and location of the cash flow payments. keeping in mind the limited purpose of the agreement, this could be done relatively easily. your attorney should prepare the actual buy-sell agreement.<\/p>\n to accomplish this, i do not believe you would need a formal conclusion of value. if the transfer is between relatives, a gift element or a tax-based transaction, you would need a conclusion of value for the fair market value prepared in accordance with irs rulings and requirements \u2026 but that is a different situation than i am discussing here. if for some reason the irs challenges the value, you can get a formal valuation then, but it would have no effect on the buy-sell transaction between the parties. you can also add (to the amount paid) that an adjustment would be made if there is a sale to a third party at a greater price within one year after the buy-sell transaction.<\/p>\n i have seen too many situations where an owner died or became permanently disabled and problems arose along with excess costs that could have been avoided if they signed a buy-sell agreement. make your life less complicated and reduce stress and consternation. get it done!<\/p>\n one way to get going is to make a large t on a page and list the \u201cgoods\u201d on one side and \u201cbads\u201d on the other.<\/p>\n you need to be clear on what you want and what is good for you. if you are not clear, then you will flounder.<\/p>\n","protected":false},"excerpt":{"rendered":"
\n202 questions and answers: managing an accounting practice<\/i><\/a><\/p>\n
\nexclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n\n