REVEALED: How to Analyze Tax Returns During M&A Due Diligence (case study with a real return)

[@michaelhellerchu7248]

As an acquisition entrepreneur, I find this very helpful. Thanks so much for putting this together. One small note: The constant zooming in and out makes it really hard to follow. Aside from that, great.

[@ulivision]

Can you please share the link for the EBIDA video? Thank you

[@vincentmurphy9252]

Jason how you been brother? I’m tuning in fantastic and great topic !! A1

[@williamjverhagen]

Jason is it possible for you to take a look at business taxes of a business Im looking to aquire. Just an opinion and thoughts.

[@mattm3083]

I'm a banker who looks at SBA loan requests all day. I wish buyers would use this spreadsheet to filter through acquisition opportunities. Can the bank do something with a 1.20 DSC? Yes. But why buy something that has marginal cash flow when there are others that are 1.50x +?

[@lobsterstrange]

What if that's how much business he can buy? What if that's his only area of expertise? What if he sees improvement opportunities?

[@marklange121]

Love thos kind of content 🔥

[@elvispresley3234]

I might add that in addition to line 21"ordinary bus income/loss", you want to pay close attention to the balance sheet re; current liabilities and accumulated carry-over liabilities as these are unrealized demands against revenue and assets. A good annual P&L can be destroyed by a leveraged balance sheet.

[@GMLwholesale]

What does it matter if it’s say a 30% cash business. If the seller does not claim all there cash

[@whoomanable]

Great Video! Exactly what I wanted to see. But please stop zooming. Just move the cursor. Thanks!

[@jorge242]

Yeah, way too much jumping around! Driving me crazy!

[@What_was_wrong_w_jst_our_names]

Good timing

[@lennonzamora5387]

Going through some tax returns recently myself trying to determine FCFF. In addition to that, is it possible to determine all add-backs from the tax returns alone? Some expenses are obvious i.e. owner salary but others seem more "hidden" or hard to pull out. Is this just a conversation and back-and-forth your Due Diligence CPA needs to confirm with the Seller?

[@RomilCPatel]

You could ask the seller for bank statements to get a better view of what is going in and out of the business; then use those statements to see what expenses would be considered legitimate add backs

[@MAC_V4_2K]

Is it appropriate to pay yourself a minimum of a $100k salary from your first acquisition (considering that its a decent sized one)?

[@Nhgctyuun37]

How much in sales? How much did you purchase the company for?

[@elvispresley3234]

Dude, great, but for the love of Pete stop zooming in and out. I feel like I'm on quaaludes.

[@jorge242]

So what of they do have interest paid? Why is it bad? What's an ok amount? This video could be so much more informative if you just slow down, stop bouncing around the screen and explain things as you go.

[@cenafanist]

How much do we pay a ceo? Is there a certain percent of cashflow or revenue depicted what we pay them?