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OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®








 GETTING YOUR BUSINESS READY FOR SALE

 		 

Are You Ready to Retire?

Retirement Budgeting

Sources of Retirement Income

Tax-Deferred Savings Vehicles

Estate Planning

Selling Your Business

Getting Your Business Ready for Sale

Working With a Business Broker

Closing-Your-Business Sale

More Resources: Retirement Planning 		  Valuation Asset Accumulation Approach
 
 
Historical
Fair Market
 
Cost
Value
ASSETS
Current Assets 
Cash and equivalents $30,000 $30,000
Receivable--commissions 80,000 80,000
Receivable--other 2,000 2,000
Other current assets 10,000 10,000
Total Current Assets 122,000 122,000
Non-current assets
Receivable--commissions 40,000 29,000
Office furniture/fixtures 25,000 30,000
Leasehold improvements 5,000 9,000
Total non-current assets 70,000 68,000
Intangible Assets
Database 0 5,000
Name/Image 0 20,000
Trained sales force 0 10,000
Going concern value 0 15,000
Goodwill 0 11,000
Total Tangible Assets 0 66,000
TOTAL ASSETS 192,000 256,000
 
LIABILITIES AND OWNER'S EQUITY
Current Liabilities
Accounts payable 1,000 1,000
Accrued expenses 30,000 30,000
Total Current Liabilities 31,000 31,000
Non-current Liabilities
Notes payable 10,000 10,000

Total Non-current Liabilities

 10,000 10,000
TOTAL LIABILITIES 41,000 41,000
 

Total Liabilities
and Owners Equity

 192,000 256,000
 
TOTAL OWNER'S EQUITY 150,000 215,000


Reprinted with permission from the Real Estate Business Series: Value of a Real Estate Brokerage Firm, NATIONAL ASSOCIATION OF REALTORS®, 1995

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