JDT Advisory
Small and midsize businesses (SMBs) often operate solely to fund the owner’s lifestyle, but the most valuable companies are run with financial rigor. You may be years away from selling, but formalizing your operations now will significantly impact the future of your business. When it is time to transition the ownership of your business, you will receive …
You’ve probably heard the adage, “It’s far easier to cross-sell an existing customer a new product than it is to find a new customer.” And if your goal is to grow at all costs, then cross-selling always makes sense. However, that kind of sales growth may not have a positive impact on the value of your …
If you have resolved to make your company more valuable, you may want to think hard about how your customers pay. If you have a transaction business model where customers pay once for what they buy, expect your company’s value to be a single-digit multiple of your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). If you have a recurring …
For Wealthpreneurs navigating the complex world of business tax planning, one critical element often overlooked or misunderstood is “reasonable compensation analysis.” This process is an essential tool for business owners seeking to optimize tax and financial planning strategies for themselves while remaining compliant with the IRS. Understanding Reasonable Compensation AnalysisReasonable compensation analysis involves determining the appropriate compensatory …
