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If you’re a commercial real estate investor or related professional, knowing how to maximize profits and decrease expenses is probably a priority. Making your property more energy efficient could help you save money, and is a great idea in the long run.

Commercial properties account for a huge amount of power usage in this country. The more than four and a half million government commercial buildings represent over sixty-seven billion square feet, and account for a quarter of our energy costs - twenty-six billion dollars a year. Reducing energy expenditure can help commercial real estate investors save a lot, as the energy crisis looms.

The government wants to encourage builders and investors to consider energy conservation seriously, especially when new buildings are being designed or constructed. That’s why the Energy Tax Incentives Act was enacted. This act was designed to reward conservation, in an attempt to combat the energy crisis. It provides fourteen and a half billion dollars in subsidies and incentives for any project or action that helps avoid producing greenhouse gases.

This piece of legislation could significantly improve your cash flow, via the tax savings you’ll get. That adds an additional reason to make your commercial real estate a lot more energy efficient. You’ll save money on operating costs, and you may be eligible for the energy efficient commercial building deduction. This deduction should improve your cash flow, allowing you to reinvest or divert those extra profits elsewhere.

If you lease or own commercial buildings, including residential buildings which have four or more stories above grade, retrofitting the property for greater efficiency can make you eligible to deduct part or all of the costs associated with that retrofit. That means that the sometimes-high costs of making your building more energy efficient can be dealt with immediately, rather than recovering them through depreciation over a much longer term.

Not sure if your building will qualify? To get a partial or full deduction, an energy efficient piece of commercial real estate must be located in the US, and the new installation must be part of the HVAC system, hot water system, or interior lighting systems. It can also be part of the building envelope, including parts like exterior windows and doors, insulation and some roofing materials. The installation must be certified to reduce your total power and energy costs by at least half.

Calculate your power and energy consumption using software programs approved by the IRS to receive this deduction, and be sure to have a contractor or engineer licensed in the building’s jurisdiction certify the property. If you meet these standards, you’ll not only enjoy savings from the changes you’ve made, you’ll also get to deduct part or all of the expenses involved in making them.

The maximum deduction available is $1.80 per square foot of qualifying building area. This deduction can be taken for prior tax years, if you made your modifications previously, but didn’t know you could be eligible for the deduction. Multiple taxpayers may receive the deduction, but they must allocate the $1.80 per square foot among them.

If your building doesn’t meet the standard of a fifty percent or greater savings, it still might qualify for a deduction. When buildings are certified to reduce energy costs by sixteen and a half percent or more, they qualify for a deduction of sixty cents per square foot.

The government is dedicated to encouraging commercial real estate developers and owners to employ all the cost effective, sustainable and technologically feasible strategies available for the creation of more energy efficient buildings. They want to encourage the use of energy alternatives that produce less carbon, and even to promote on-site energy.

Even though we’re using more computers and other energy consuming technologies in our commercial real estate sites, energy consumption in commercial buildings has decreased by twenty-five percent over the past three decades. This is a great precedent, and one that we should continue to follow.

Since retrofitting your building, designing new buildings, or installing technology in existing sites to make them more energy efficient is a great opportunity, commercial real estate investors should pay attention. Greater energy efficiency can save you money, both directly, and through tax incentives.

It might take twenty or thirty years for efficiency increasing measures to pay for themselves through energy savings. However, if you qualify for a deduction, that retrofit could pay for itself immediately, giving you more cash to work with, and allowing you to directly benefit from the energy savings.

What building upgrade is the most financially beneficial and easiest to perform? Lighting changes are generally considered the easiest and most lucrative upgrades. In the past decade, technologies have been developed that will not only help you cut your costs by a third to two thirds, but will also reduce the environmental impact of your facility and improve the quality of your lighting.

In new construction, installing lighting controls can reduce energy consumption by at least thirty-five percent, and by at least fifty percent in exiting buildings. That’s a simple way to make your buildings more pleasant to work in and save money, too.

If you’re an investor or other professional in the commercial real estate field, now’s the time to start looking at energy efficiency. Making the right changes can increase your buildings’ efficiency, and get you valuable tax deductions, increasing your over all cash flow. If that sounds like a good idea to you, examine your properties’ energy usage. Chances are, you’ll find a place to improve efficiency and save.

There are a couple of choices for business owners to choose from when it comes to short-term working capital financing. Those choices are business cash advances and short-term commercial mortgages.

The most often used methods are the short-term merchant cash advance and commercial real estate loan programs. Both working capital funding techniques are more often than not the reason for uncertainty for business owners.

Sometimes, when a strategy is overlooked it is not on purpose however, it is simply ignorance. Possibly the best method for businesses is the commercial loan way to secure cash for their business: a cash advance for the business via credit card processing.

Any retail business such as a retail store, restaurants, service businesses are more often than not in the position to reap the rewards. There will usually be only a few business financing sources that are regularly finishing a transaction for credit card financing and processing. The major problems you don’t want to run into when dealing with a working capital advance, and choosing a lending source is vital to a proper business cash advance program.

A typical commercial mortgage with a 10 or 15 year term is sufficient for many businesses that own commercial real estate. Financing of commercial real estate property should be structured with the right mix of short-term and long-term financing. If longer-term commercial real estate loan is available up to 30 years, it is highly recommended to give more weight to longer period financing.

Short-term commercial loans should also be looked over as longer-term financing is not always the correct solution for business owners. There are attractive alternatives for short-term working capital strategies available for business owners who want to sell or sell the property within a few years. The majority of brief period commercial real estate loans offer prepayment penalties that are reasonable as well as the fees.

Although this is a viable solution, the interest rate will customarily range between 11%  to 14% and the maximum loan amount offered will generally be 70% or less. When short-term commercial financing is available, it will not typically be provided for special category commercial properties.

Short term commercial loan, known as bridge loans, are most likely offered on multi-family, mixed-use property, office, warehouse and retail. These bridge loans are generally offered up to a three year term.

There are many commercial lenders, but only a few can successfully complete short-term business financing to the end. There are also numerous problems to avoid with short-term commercial mortgage programs, When choosing a commercial loan lender, it is very important that the commercial property in question is a niche or property type the lender normally can finance.

In essence, a Property Condition Assessment (PCA) is to commercial property what a home inspection is to residential property. According to The American Society of Testing Materials ASTM E 2018-08, a Property Condition Assessment may be defined as: the process by which a person or entity observes a property, interviews sources, and reviews available documentation for the purpose of developing an opinion and preparing a Property condition Report (PCR) of a commercial real estate’s current physical condition.

While most people would never think about purchasing a home today without having a home inspection, many who plan on purchasing commercial real estate property for investment, personal or business use, either don’t know what a Property Condition Assessment (PCA) is and/or aren’t given the opportunity to consider a PCA before purchasing a commercial property. The problem with this scenario as it affects most people is that they have literally done nothing to help lessen the uncertainty and risk often associated with a typical commercial real estate transaction.

On the other hand, the advantages and benefits of having a PCA when planning to purchase a commercial real estate property can be very gratifying and normally far outweigh the cost thereof. Just to name a few, a PCA performed at a high level of due diligence and inquiry can often:

• Help to make an informed purchase decision
• Act as an effective negotiating tool
• Serve to reduce the purchase price of the property
• Place the onus on the seller to make and pay for repairs
• Allow one to back out of the deal depending upon the property’s physical condition
• Help to anticipate repairs down the road
• Help to develop both a short and long term preventative maintenance program
• Prevent one from purchasing the money pit!

However, like home inspections, not all PCAs are created equal, meaning ‘You Get What You Pay For’. This being the case, if you are altogether unfamiliar with PCAs or have ever been on the receiving end of a PCA gone bad, then you need to learn a little bit more about PCAs in order to become (more) discriminating in who you hire since the end result is only as good as the level of PCA provided.

More on the Baseline PCA’s and what constitutes a PCA performed at a higher level of due diligence and inquiry in coming articles.

In order to purchase a property, Gurgaon real estate provides the finest opportunities to buy a wide range of properties that include apartments, flats, condominium, commercial and industrial space, office space, corporate locations, agricultural land, rented properties, shops, plots, villas, farm houses or even builder floors.

Having property in Gurgaon is beneficial in respect to prices, rental income and security. The prices of residential as well as commercial real estate has been increased at a fast pace.

Gurgaon is home to a number of educational institutions that include The Institute of Media and Technology (IMT), Institute for International Management and Technology (IIMT), Haryana Institute of Public Administration (HIPA), Ansal Institute of Technology, ICFAI and so on.

Apart from these educational institutions, the place also has some renowned schools for instance Amity International, Shri Ram School, Ryan International, Basant Valley Public School, DAV Public School, Summer Fields School and so on.

The proposed Expressway to Jaipur, Metro Rail link to Delhi and the Special Economic Zone to be build up by Reliance Industries are already increasing the value to Gurgaon apartments for developer and builders. About eight SEZs are likely to be set up which have permissions to build up residential zones keeping in mind improvement of the total infrastructural class in their respective areas.

With the increasing number of malls, Gurgaon has become one of the best places for shopping. The city has a number of malls such as DLF City Centre, DLF Grand Mall, DLF Mega Mall, Sahara Mall, MGF Metropolitan Mall, MGF Mega City.

Commercial property management organizations might have to brace themselves for some tough time in the near future as major investors move away from making investments in business related assets. The investors are reluctant to make investments in extending loans as financial aid to people who want to buy assets and also in purchasing, hiring or selling assets. Many of the assets managing giants are selling of major parts of their businesses and are even contemplating the sale of all their businesses. The repercussion of this is that many of the banks that are extending financial aid to these investors are finding it hard to sustain the impact of the decision of the asset investors to pull back form their initiatives.

The commercial property management organizations are entrusted with the job of managing corporate offices, restaurants and retail outlets amongst other business establishments. If the business investors do not provide any financial aid to promote the worth of these buildings, e.g., for the renovation and maintenance activities of these buildings, the assets managing firms will not be able to maintain these buildings to the best possible extent. Some of these investors are global investors and are associated with a lot of business establishments and projects worldwide. Withdrawing from these projects and not financing the business establishments can result in the closure of these establishments not only in one country, but throughout the world.

These organizations are seeing some very tough times owing to the credit crunch as these investors are holding back or terminating the projects that they have undertaken. The assets managing firms build their hopes on the assets investors as they get business from them and they give business to them. The assets managing organizations get monetary benefits for showing business to these investors and by arranging parties to purchase or hire the assets in which the investors invest. Once the investors turn away from any prospective projects, the assets managing firms stop getting their benefits and as a result suffer huge losses.

The commercial property management organizations belonging to major cities throughout the globe are the ones who are suffering the most because they have been managing very expensive assets and were engaged in developing some potentially powerful business venues like sophisticated entertainment venues, recreation parks, shopping malls and food retail outlets. The backward step of the investors is proving to be a great loss in terms of manpower, time and resources; for the assets managing firms throughout the globe.

The sale of business assets has come down drastically from last year. The credit crunch had limited scope earlier but now it is spreading its tentacles throughout the business world very rapidly and this is a matter of concern for the commercial property management organizations. The investors as well as the assets managing firms are at a loss of ideas when it comes to tackling this crisis. But it seems that the state of affairs in the business assets world is far better than in the housing assets world. The housing assets world seems to be suffering the most due to credit crunch. Many of the investors have brought the housing assets purchasing and selling to an end. On the whole, the assets industry is in a gloomy state at present and it is necessary for the business communities and the managing firms to find out a solution for this problem as soon as possible.

There’s good news for the investors who thought they were a bit too late in entering Dubai real estate market. Another “Dubai” is in making and this time the stakes are even higher. So far, Abu Dhabi has been quietly observing the growth of Dubai in terms of real estate like a sleeping giant. Government of Abu Dhabi has now started to take initiatives towards transformation into becoming or ever surpassing Dubai. Right now real estate market has everything working in its favor.

Rising Economy:
The biggest Emirate by size, Abu Dhabi is one of the world richest cities in terms of Gross Domestic Product (GDP) and Per Capita Income. With crude oil & gas reserves projected to last another century, it is the 4th largest supplier of oil and also contributes to the United Arab Emirates economy more than 60%. All of these indicators prove that Abu Dhabi’s economy can withstand the demands of upcoming boom in real estate industry.

Real Estate Projects:
Some major projects include Saadiyat Island, Yas Island, Al Raha Beach, New International Airport, Desert Towers, Khalifa City and much more. Some of these projects are really huge like Yas Island or Khalifa City. Over $450 billion worth of real estate development projects are planned for this year.

Investing Perspective:
Abu Dhabi holds many positives from investor’s point of view. According to the “Plan Abu Dhabi 2030″ assessments, population will grow from less than one million to 3.1 million in 2030, while the number of tourists visiting Abu Dhabi will increase to 7.9 million from the present figure of 1.8 million. Population is largely made of expatriates, so the rents are increasing steadily. As HSBC research report shows, its property prices have an approximate growth of 58%, compared to 37% growth in Dubai property prices.

Abu Dhabi government looks quite committed to diversify its economy; it’s only a matter of time before Abu Dhabi real estate market will reach the grandeur of Dubai real estate. Even after the present upsurge, the prices are still relatively low from international standard. With news that Abu Dhabi will be hosting the Formula 1 Grand Prix in 2009, Abu Dhabi is investing largely on its banking and tourism sector as well. Investor who can invest and hold their funds for some time, Abu Dhabi real estate will surely bring them great yields in coming years.

Property Condition Assessments (PCAs) performed according to American Society of Testing Materials ASTM E 2018-08, are commonly referred to as ‘Baseline PCAs’. In order to understand the meaning of a Baseline PCA, we can refer to the definition of ‘baseline’ provided in ASTM E 2018 that states:

‘the minimum level of observations, due diligence, inquiry/research, documentation review, and preparation of opinions of probable costs to remedy material physical deficiencies for conducting a PCA as described in this guide.’

Given this definition, a Baseline PCA is essentially a cursory walk-through of a commercial property augmented by document reviews and interviews in an attempt to understand and determine the current physical condition of the property being surveyed.

While some may argue that a Baseline PCA is better than nothing at all, the fact remains that baseline PCAs continue to rely heavily upon documentation review and interviews for retrieving information from sellers, real estate agents, and other people we usually don’t know. Unfortunately, this information may later prove to be insufficient or inaccurate simply because it is often difficult if not impossible to verify the authenticity thereof in conducting a walk-through survey of the property as provided by a Baseline PCA.

The following depict some common conditions and repairs that can virtually go undetected and remain unknown in conducting a typical Baseline PCA according to ASTM E 2018:

• Verify heat exchanger replacement inside a rooftop package unit
• Verify replacement of compressor inside a rooftop package unit
• Burnt control wiring inside a rooftop package unit
• A cracked heat exchanger inside a rooftop package unit
• A cracked or holed heat exchanger inside a gas fired unit heater mounted up high
• Elevated or unsafe levels of carbon monoxide (CO) in flue gas
• Electrical switch gear and panel code violations
• Overheated bus bars, devices or electrical wiring inside power distribution equipment
• Burned out electric heating elements when two or more are present

By this time, you’re no doubt probably asking yourself, ‘What does all of this mean and how does this apply to me in purchasing a commercial real estate property’. Well, the answer is quite simple in that if you’re looking to mitigate your risk of purchase to the fullest extent possible, you’ll want to opt for a PCA performed at a much higher level of due diligence and inquiry than that typically provided by a Baseline PCA.

My next article will continue this discussion by explaining what constitutes a PCA performed at a higher level of due diligence and inquiry than a typical Baseline PCA.

According to the National Association of Realtors, new-home sales are projected to drop to 464,000 in 2009, down 8.8% from their 2008 mark of 509,000. While real estate experts remain unsure when the real estate downturn will again move positive, equity and non-equity destination clubs both welcome and fear the decrease in luxury real estate prices.

Most destination club business models revolve around the clubs’ real estate holdings. Destination clubs typically fall into three rather broad categories:

Bond-like Memberships

The most common destination club model, a member receives a fixed amount when (if) they resign their destination club membership. Members have a fixed amount that they receive at the conclusion of their membership period, generally between 75 percent and 100 percent of the membership deposit they to join the club.

Future Value Memberships

This increasingly popular membership option provides members with a refund based on the ideally higher initial fees a club is charging when a member exits the club. Under this format, members may receive even more than they what they paid in. Although models vary, members typically receive between 70 to 80 percent of the future value of their membership, upon exiting the club.

For example, the Solstice Collection currently offers their Signature membership plan for $615,000. Solstice allows their members the option of choosing a traditional bond-like membership plan, as mentioned above, or a future value membership option. A Solstice member electing to take the traditional bond membership option would receive 100 percent of their membership deposit back when resigning from the club. A member who elects the future value option is counting on the club being able to charge more for their membership in the future. If Solstice raises their Signature membership plan to $800,000, a future value member who joined at $615,000 would get 80 percent of the $800,000 membership value when they resigned; a $640,000 refund on their $615,000 initial membership deposit.

Equity Membership Most similar to true second home ownership, members are also direct owners of the club’s portfolio of properties. Members enjoy similar access to the club’s properties as the other formats, and when they redeem their membership, they receive an amount that is calculated based on the club’s current real estate holdings. Some equity clubs have a fixed date at which point the club will liquidate its holdings, and return pro rata shares of the proceeds to all member/owners. If the club has made wise real estate investments in burgeoning markets, the member may well receive an amount significantly greater than the amount they invested. If the club’s real estate has not appreciated at all, the amount refunded will probably be similar to the amount paid in. “We’re finding luxury homes up to 30% off in markets that would have sold at market rate just a few years ago,” said Adam Capes, President of Equity Estates, in a recent conversation with The Veras Group. “Our owners/members love that we are acquiring our portfolio of homes in a down real estate market.”

Equity Estates, one of the leading firms in this sector of the destination club industry, structures their membership as ownership of an investment fund. Members enjoy luxurious vacation residences and first class service, but are also owners of the fund, which has an anticipated liquidation date in 13 years.

While Equity Estates and other destination clubs’ members directly benefit from the club buying homes in a slumping real estate environment, the other destination club models also see benefits from their structure in slower markets.

Diversified Real Estate Portfolio

While the value of one home in one location can vary widely, depending on the local market, destination clubs have a disparate, global portfolio of homes. The diverse locations spread risk across a broader platform, which can be a great benefit to clubs with larger portfolios. While domestic real estate has seen a recent downturn, many international properties have seen record gains. Some international beach properties have posted gains over 230 percent in the past five years. Los Cabos, a destination club mainstay, has enjoyed 17 percent year over year gains during this period, and other areas like the Turks & Caicos have dedicated billions of dollars to tourism development, subsequently strengthening the area’s real estate asset value. While some US and Canadian properties have seen value depreciation, some have seen just the opposite, shielding clubs from drastic regional price variances. Membership Deposit Toward Real Estate Nearly every destination club states how much of its incoming membership deposits are allocated toward real estate acquisition. While many home prices have slid, destination club membership prices have risen. This presents a huge opportunity for forward-thinking clubs.

Purchase More Real Estate: If members are contributing more capital as part of their initial purchase decision, the club can purchase additional real estate in advance of their acquisition schedule. This second option not only increases availability, but also allows the club to grow their real estate holdings. By taking a long-term view, destination clubs can maximize profits when they do sell, during more favorable market conditions. This also adds more homes and destinations, allowing for stronger future sales.

Purchase Better Real Estate: Every club has a target home value they purchase for their members. If a club typically purchases $4 million residences, they may be able to temporarily increase their buying power, and purchase homes valued at $4.5-$5 million currently. This allows the club to buy homes that are closer to the beach or ski lift, more spacious, and more stunning than their other real estate.

Decrease Their Debt Service: While both of the above options strengthen the member’s travel options, a down real estate market can also strengthen the club’s financial security. Members’ deposits are backed by the club’s real estate holdings. Many destination clubs do not purchase their homes outright, but rather incur debt between 40% and 70% of the property value to complete the transaction. If clubs are receiving more membership deposit monies per home, they can increase their down payment and drive down the loan-to-value ratio. This decreased debt improves the club’s balance sheet and thus members’ deposit security.

The oldest investment mantra is “buy low, sell high.” The destination club model is predicated on this idea. While lower real estate values temporarily decrease the value of the club’s overall portfolio, it ultimately raises the club’s long term sustainability and produces highly satisfied members.

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The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your purchase from start to finish: customized reviews of your travel needs, unrestricted access to our expert advisors, insiders’ advice from industry veterans, insightful due diligence support, thorough club comparisons and points of difference, and the best available terms & pricing on your membership, all at no cost to you.

Real Estate Developer companies in United Arab Emirates are well known for their stunning innovations, ground breaking designs and swift completion of the projects. Credit goes to Nakheel, Emaar, Damac, etc for delivering projects like Palm Island, Business Bay, Dubailand or Burj-Ul-Arab. These developers have grown in tandem with Dubai real estate market. Some of these much admired developers operating in UAE markets are discussed below.

Al Nakheel Properties:
Nakheel Corporation is the most prominent developer in UAE. Their trademark work is the land reclamation projects they have carried so far. Palm Trilogy, The world or Dubai water fronts, each of them is a milestone, achieved by no other company as yet. Other notable properties include Jumeirah Lake Towers, The International City or Jumeirah Village. Nakheel’s vision has provided Dubai with the much needed edge in design and structures over other parts of the world.

Emaar Properties:
Regarded as the largest real estate company of UAE, having projects like Burj Dubai (anticipated to be the tallest man made structure in world), Dubai Marina, “Emaar Misr” and “Emirates Livings” on their portfolio, “Emaar Properties” means business for sure. The company is just 11 years old and already aiming at becoming one of the most valuable companies by 2010. Apart from UAE, Emaar properties has extend their business to more than 30 countries all over the world including Saudi Arabia, Egypt, Morocco, India, Pakistan, Turkey, USA, Canada and United Kingdom.

Damac Properties:
Another big name, Damac properties won the title in five categories of CNBC Arabian Property Awards 2008. They have a long list of residential and commercial units on their credit such as ocean Heights, The Waves, Burjside Terrace, Business Square, Solitaire, Damac Heights, Business Heights and Park Towers, all situated at strategically selected exclusive locations. Damac Properties are also appraised for their great payment plans and investment offers.

Dubai Properties:
“Dubai properties” is the name behind projects like Jumeirah Beach Residence, Business Bay (accredited as the best master development in Arabian Property Award 2008), Culture Village, The Executive Towers and Mudon. This company is a member of Dubai Holding, which belongs to the government of Dubai. The company is now looking to extend themselves internationally.

Dheeraj & East Coast, Deyaar, Tameer, Diamond Investments, ETA Star Property and Vakson Freehold Properties are some other chief developers actively contributing in UAE real estate market, which continues to get bigger and better.

Small business owners generally fail to plan ahead when they think they might have an interest in selling their business and consequently fail to achieve the best price. When a person sells a house, they normally redo the kitchen or bathrooms, change the carpet, revamp the landscaping in order to achieve their top dollar for the eventual sale of the home. When selling a small business, the owner of the business rarely looks at the concerns that a buyer might have in determining the price that buyer might offer to buy the business.

Many small business owners do not think that they have anything to sell or only think to sell their business when they are in trouble financially, which is the worst time to sell. Others do not think that they will ever sell, but leave their families in the lurch when they die and no provision has been made to provide for an eventual sale or succession plan.

A business should always be run as if it is for sale. This means that the owner should be mindful of what a buyer in their industry would value and pay a higher price for at the time of any sale. While assets and liabilities are used to calculate a company’s fair market value, that is only the starting point for such valuation. A buyer will also look at cash flow of the business to determine what cash would be available to the buyer, especially if they are incurring debt to buy such a business. A potential buyer will also be interested in whether the business is growing in its industry or if the current owner is using the business as a “cash cow” that the owner is “milking” instead of reinvesting the profits into new technology or additional infrastructure.

If the business has a lease that is crucial to the success of the business, a buyer would be interested in the length of the existing lease and favorable terms contained in the lease, such as below market rent or options to renew. The current owner can look to negotiate better terms with their landlord, especially if their lease is coming up for potential renewal. If the company owns its own building, a potential buyer might show more interest if the building is well maintained and the work flow within the facility is laid out in a way that is cost effective. If there are environmental issues that need to be dealt with, it is important to deal with any such issues well in advance of placing the business on the market. If there are contracts with union workers or vendors which do not have favorable terms to the business, the small business owner should attempt to renegotiate such terms to be more favorable to the business.

Another issue often overlooked by a small business owner is whether they have too much of their sales from one big customer. Having one big customer may seem like a good idea at the time, but could result in financial ruin for the small business owner if that customer falls on financial hard times. A potential buyer will look at a business with only one big customer as more of a risky business even if the customer gives a good boost to the bottom line as reflected in the income statement.

A buyer is also interested in knowing that there are “people infrastructure” in the business that will handle the day to day once the small business owner is no longer running the business. If there is no one else, a potential buyer will assume that customers may leave or a lot of the knowledge about the customers and the business that the small business owner has will leave with them. This causes the business to be worth less to the potential buyer.

It may take six months to two years or longer to sell the business. Prior to that time, the small business owner may wish to hire a broker and seek financial advice from their tax attorney or CPA about the best way to structure the deal to obtain the best tax result for the small business owner. It is important for the small business owner to plan ahead to obtain top dollar for their company.