Buying Into a Professional Practice: Financial Questions to Ask
Before buying into a professional practice, test the quality of earnings, working-capital requirements, client retention, liabilities and exit terms.
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Articles and perspectives from Sheldon & Xu CPA.
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Business
Buying a Business: Normalize Earnings Before You Value It
Reported profit is only the starting point when assessing the sustainable earnings and cash flow of a business acquisition.
Business
Build the Remaining 2024 Rate Decisions into Your Forecast
Use the Bank of Canada’s remaining 2024 decision dates as checkpoints for debt, cash and capital-spending assumptions.
Business
Preparing for the July 24 Rate Decision: Debt, Deposits and Capital Spending
Before the July 2024 rate decision, owners could review variable debt, excess deposits and capital projects without assuming that one announcement would determine the year.
Business
The July Business Outlook: Turning Sentiment into a Company Forecast
Ahead of the July Business Outlook Survey, owners could define which sales, pricing, hiring and investment indicators would confirm or challenge their own forecast.
Business
Preparing for the June 5 Rate Decision: A Business Financing Checklist
Before the June 2024 rate announcement, businesses could identify variable-rate exposure, refinancing dates and customer sensitivity without trying to predict the Bank of Canada.
Business
Debt Renewals at Higher Rates: Rebuilding the Financing Plan
A renewal is not merely an interest-rate comparison. Owners should model payment changes, covenants, security and the cash required under a slower operating case.
Business
Financial Stability Risks: What Smaller Companies Can Control
System-wide risks are outside an owner’s control, but liquidity, customer concentration, debt maturity and operating reserves are manageable.
Business
Holding Companies: Purposes, Trade-Offs and Planning Questions
A holding company can support investment, risk and succession objectives, but it adds tax, legal and administrative complexity that should be modelled first.
Business
High Rates, Slower Demand: Stress-Testing the 2024 Forecast
Before the Bank of Canada’s April decision, businesses could prepare by testing debt service, sales volume and pricing assumptions rather than trying to predict the rate announcement.
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