{"version":"1.0.0","segments":[{"startTime":0.0,"endTime":3.48,"body":"hello and welcome to well capitalized"},{"startTime":1.74,"endTime":5.13,"body":"I'm your host Bobby Kingsbury managing"},{"startTime":3.48,"endTime":7.069,"body":"director at MCM Capital Partners and"},{"startTime":5.13,"endTime":9.389,"body":"today we're continuing our discussion on"},{"startTime":7.069,"endTime":10.559,"body":"M\u0026A due diligence and today we're"},{"startTime":9.389,"endTime":12.84,"body":"talking about the financial and"},{"startTime":10.559,"endTime":14.91,"body":"accounting financial tax side of it and"},{"startTime":12.84,"endTime":16.41,"body":"with us today we have Justin Thomas from"},{"startTime":14.91,"endTime":18.6,"body":"kony company thanks for having me back"},{"startTime":16.41,"endTime":19.8,"body":"thanks for joining us can you just start"},{"startTime":18.6,"endTime":21.029,"body":"by giving us a little bit of your"},{"startTime":19.8,"endTime":23.16,"body":"background and maybe a little bit about"},{"startTime":21.029,"endTime":25.74,"body":"about Cohen sure all right"},{"startTime":23.16,"endTime":28.019,"body":"Coenen company is a little market"},{"startTime":25.74,"endTime":30.39,"body":"focused accounting firm based in"},{"startTime":28.019,"endTime":32.82,"body":"Cleveland Ohio you know offer"},{"startTime":30.39,"endTime":34.89,"body":"traditional accounting and tax services"},{"startTime":32.82,"endTime":39.93,"body":"primarily done privately owned companies"},{"startTime":34.89,"endTime":42.059,"body":"and we also have my group is a part of I"},{"startTime":39.93,"endTime":44.28,"body":"run our transaction services division so"},{"startTime":42.059,"endTime":47.07,"body":"we specialize in doing accounting and"},{"startTime":44.28,"endTime":49.02,"body":"tax due diligence for companies that are"},{"startTime":47.07,"endTime":51.3,"body":"entering into an acquisition whether"},{"startTime":49.02,"endTime":54.66,"body":"that be for the buyer or as the seller"},{"startTime":51.3,"endTime":57.48,"body":"yeah and just a little bit of background"},{"startTime":54.66,"endTime":59.789,"body":"yourself sure I've run the practice at"},{"startTime":57.48,"endTime":62.309,"body":"Cohen for a little over five years the"},{"startTime":59.789,"endTime":65.07,"body":"13 years before that I was doing the"},{"startTime":62.309,"endTime":67.92,"body":"same type of work for PwC one of the big"},{"startTime":65.07,"endTime":72.689,"body":"four accounting firms great so getting"},{"startTime":67.92,"endTime":76.409,"body":"into the the crux of of the subject what"},{"startTime":72.689,"endTime":80.25,"body":"does the financial and tax diligence"},{"startTime":76.409,"endTime":81.33,"body":"actually entail from a transaction"},{"startTime":80.25,"endTime":84.42,"body":"standpoint sure thing"},{"startTime":81.33,"endTime":88.11,"body":"so our work primarily entails a deep"},{"startTime":84.42,"endTime":91.71,"body":"dive look at the historical financials"},{"startTime":88.11,"endTime":94.35,"body":"and tax position of a company so as you"},{"startTime":91.71,"endTime":96.27,"body":"know an investor you're going to be"},{"startTime":94.35,"endTime":97.71,"body":"looking hard at the historical"},{"startTime":96.27,"endTime":100.56,"body":"financials of the business to make sure"},{"startTime":97.71,"endTime":102.36,"body":"that they align with your understanding"},{"startTime":100.56,"endTime":104.82,"body":"of valuation that you've offered to a"},{"startTime":102.36,"endTime":106.56,"body":"business owner usually prior to the"},{"startTime":104.82,"endTime":109.95,"body":"point we get involved someone like"},{"startTime":106.56,"endTime":111.0,"body":"yourself has had minimal minimal access"},{"startTime":109.95,"endTime":112.49,"body":"to the company and its financial"},{"startTime":111.0,"endTime":115.649,"body":"statements probably some high-level"},{"startTime":112.49,"endTime":119.909,"body":"information but haven't had a chance to"},{"startTime":115.649,"endTime":121.409,"body":"deep dive so what we do is we go in you"},{"startTime":119.909,"endTime":123.63,"body":"know and I try to in a condensed"},{"startTime":121.409,"endTime":125.79,"body":"timeframe understand the financials at a"},{"startTime":123.63,"endTime":127.71,"body":"very specific level understand what's"},{"startTime":125.79,"endTime":130.02,"body":"going on with the business understand"},{"startTime":127.71,"endTime":132.03,"body":"any add back Steve Itza which we can"},{"startTime":130.02,"endTime":134.0,"body":"talk about in a minute what those mean"},{"startTime":132.03,"endTime":135.62,"body":"and just generally try to"},{"startTime":134.0,"endTime":137.0,"body":"sure all the parties have a good"},{"startTime":135.62,"endTime":139.49,"body":"understanding of the financial condition"},{"startTime":137.0,"endTime":142.79,"body":"of the business and any tax risks that"},{"startTime":139.49,"endTime":146.93,"body":"might exist yeah that's so you know I'm"},{"startTime":142.79,"endTime":149.66,"body":"sure the list is pretty voluminous but"},{"startTime":146.93,"endTime":153.29,"body":"what what information are you going to"},{"startTime":149.66,"endTime":154.58,"body":"request from a business owner sure some"},{"startTime":153.29,"endTime":156.29,"body":"of it will depend on the company and the"},{"startTime":154.58,"endTime":158.66,"body":"type of company but the general things"},{"startTime":156.29,"endTime":160.22,"body":"are just detailed financial records"},{"startTime":158.66,"endTime":162.05,"body":"usually for the last three years"},{"startTime":160.22,"endTime":163.94,"body":"usually the period we look at is three"},{"startTime":162.05,"endTime":166.61,"body":"years back it may go up to five years"},{"startTime":163.94,"endTime":168.38,"body":"but generally three years so detailed"},{"startTime":166.61,"endTime":170.209,"body":"financial records of your income"},{"startTime":168.38,"endTime":172.989,"body":"statement your trial balance you know"},{"startTime":170.209,"endTime":175.7,"body":"some things like detailed sales analysis"},{"startTime":172.989,"endTime":178.1,"body":"you know whether that be sales and"},{"startTime":175.7,"endTime":180.62,"body":"potentially margin by customer or by"},{"startTime":178.1,"endTime":182.239,"body":"product line things like that again to"},{"startTime":180.62,"endTime":184.94,"body":"get a better and deeper understanding of"},{"startTime":182.239,"endTime":188.33,"body":"where the sales dollars in margin of the"},{"startTime":184.94,"endTime":190.01,"body":"business are coming from and then more"},{"startTime":188.33,"endTime":192.56,"body":"you know typical things would be"},{"startTime":190.01,"endTime":194.36,"body":"understanding the accounts receivable"},{"startTime":192.56,"endTime":196.73,"body":"position of the company looking at"},{"startTime":194.36,"endTime":198.049,"body":"details of the inventory over time just"},{"startTime":196.73,"endTime":199.87,"body":"to make sure we understand the assets"},{"startTime":198.049,"endTime":202.4,"body":"that will be acquired in the transaction"},{"startTime":199.87,"endTime":204.89,"body":"from the tax side we're going to be"},{"startTime":202.4,"endTime":207.2,"body":"making sure that all of your filings are"},{"startTime":204.89,"endTime":210.11,"body":"up to date when looking at it from a"},{"startTime":207.2,"endTime":212.18,"body":"state level that you're filing it"},{"startTime":210.11,"endTime":214.25,"body":"returns whether they be income income"},{"startTime":212.18,"endTime":216.29,"body":"tax returns or sales and use tax returns"},{"startTime":214.25,"endTime":219.41,"body":"in the right States depending on where"},{"startTime":216.29,"endTime":221.81,"body":"you have activity that can be you know"},{"startTime":219.41,"endTime":223.94,"body":"one that that is a little tricky because"},{"startTime":221.81,"endTime":225.89,"body":"just from time to time those states like"},{"startTime":223.94,"endTime":228.17,"body":"to change the rules and small business"},{"startTime":225.89,"endTime":231.23,"body":"owners don't always have the ability to"},{"startTime":228.17,"endTime":233.45,"body":"stay on top of that and that generally"},{"startTime":231.23,"endTime":235.79,"body":"is again a three to five year period but"},{"startTime":233.45,"endTime":237.65,"body":"we're looking back at that activity and"},{"startTime":235.79,"endTime":240.56,"body":"then I you know when we had talked"},{"startTime":237.65,"endTime":243.079,"body":"before you were kind enough to offer a"},{"startTime":240.56,"endTime":244.64,"body":"just a standard diligence checklist that"},{"startTime":243.079,"endTime":248.0,"body":"we can provide to the business owners"},{"startTime":244.64,"endTime":249.14,"body":"listening in and watching yep and then"},{"startTime":248.0,"endTime":251.68,"body":"that should give you a good idea of at"},{"startTime":249.14,"endTime":254.209,"body":"least the basics of what should be"},{"startTime":251.68,"endTime":255.68,"body":"requested in a general sense and you"},{"startTime":254.209,"endTime":257.269,"body":"know depending on your business there"},{"startTime":255.68,"endTime":258.56,"body":"may be may be more or less from there"},{"startTime":257.269,"endTime":260.87,"body":"but that should be a good start yeah"},{"startTime":258.56,"endTime":263.14,"body":"when some business owners may look at"},{"startTime":260.87,"endTime":265.16,"body":"that and look at this list you know I"},{"startTime":263.14,"endTime":266.81,"body":"think you know"},{"startTime":265.16,"endTime":269.09,"body":"to a certain extent the answer is"},{"startTime":266.81,"endTime":272.39,"body":"obvious but but why does this need to be"},{"startTime":269.09,"endTime":274.28,"body":"done yeah well it needs to be done like"},{"startTime":272.39,"endTime":275.72,"body":"I said before just so we have a real"},{"startTime":274.28,"endTime":280.16,"body":"fulsome understanding of the business"},{"startTime":275.72,"endTime":281.99,"body":"and understanding in detail what's going"},{"startTime":280.16,"endTime":284.39,"body":"to be acquired so somebody is making a"},{"startTime":281.99,"endTime":287.57,"body":"significant investment in your business"},{"startTime":284.39,"endTime":290.39,"body":"and you know while the the real value to"},{"startTime":287.57,"endTime":292.55,"body":"the buyer is in the future right you're"},{"startTime":290.39,"endTime":294.5,"body":"kind of acquiring the future cash flows"},{"startTime":292.55,"endTime":296.21,"body":"of the business to really make sure that"},{"startTime":294.5,"endTime":297.56,"body":"that projection makes sense we have to"},{"startTime":296.21,"endTime":299.27,"body":"understand what's happened in the past"},{"startTime":297.56,"endTime":301.22,"body":"and make that connection between the two"},{"startTime":299.27,"endTime":302.99,"body":"so that's why we look at things in such"},{"startTime":301.22,"endTime":305.51,"body":"a detail levels to make sure it marries"},{"startTime":302.99,"endTime":307.19,"body":"up with the forecast and ultimately the"},{"startTime":305.51,"endTime":311.45,"body":"value that's been proposed for the"},{"startTime":307.19,"endTime":313.67,"body":"company got it so when we look at"},{"startTime":311.45,"endTime":317.81,"body":"specific businesses and we're looking at"},{"startTime":313.67,"endTime":319.34,"body":"at diligence requests how long does this"},{"startTime":317.81,"endTime":321.53,"body":"usually take and then who from the"},{"startTime":319.34,"endTime":323.72,"body":"company is is going to be involved"},{"startTime":321.53,"endTime":325.91,"body":"because we talked you know with the"},{"startTime":323.72,"endTime":328.34,"body":"legal side and sometimes business owners"},{"startTime":325.91,"endTime":329.69,"body":"prior to a letter of intent all right"},{"startTime":328.34,"endTime":331.97,"body":"sometimes even after a letter of intent"},{"startTime":329.69,"endTime":334.04,"body":"don't want to disclose the fact that"},{"startTime":331.97,"endTime":335.69,"body":"they're selling the the business but to"},{"startTime":334.04,"endTime":339.17,"body":"do all this work on their own might be"},{"startTime":335.69,"endTime":341.6,"body":"pretty difficult it generally generally"},{"startTime":339.17,"endTime":343.4,"body":"is yeah so I think you know when you"},{"startTime":341.6,"endTime":345.44,"body":"think of it in terms of how long does"},{"startTime":343.4,"endTime":348.83,"body":"this process take it's a bit of a"},{"startTime":345.44,"endTime":350.39,"body":"sliding scale so again from the"},{"startTime":348.83,"endTime":352.55,"body":"financial and tax due diligence side"},{"startTime":350.39,"endTime":354.59,"body":"we're usually the first group to really"},{"startTime":352.55,"endTime":357.47,"body":"kick off the detailed due diligence"},{"startTime":354.59,"endTime":359.54,"body":"after the letter of intent is signed so"},{"startTime":357.47,"endTime":360.89,"body":"what you're going to get is that first"},{"startTime":359.54,"endTime":362.9,"body":"initial list from us and then there will"},{"startTime":360.89,"endTime":366.71,"body":"be you know a flurry of activity right"},{"startTime":362.9,"endTime":369.17,"body":"away and so over the first couple days"},{"startTime":366.71,"endTime":370.88,"body":"to a week from when we get engaged and"},{"startTime":369.17,"endTime":373.99,"body":"have a kickoff call with the the"},{"startTime":370.88,"endTime":375.92,"body":"business owners company there will be a"},{"startTime":373.99,"endTime":378.98,"body":"large amount of data processed right"},{"startTime":375.92,"endTime":381.38,"body":"away then continuing on over the next"},{"startTime":378.98,"endTime":383.69,"body":"couple weeks there will continue to be"},{"startTime":381.38,"endTime":385.58,"body":"some back-and-forth but hopefully that's"},{"startTime":383.69,"endTime":387.92,"body":"the type of lease on the financial and"},{"startTime":385.58,"endTime":389.66,"body":"tax we can front-load that work and then"},{"startTime":387.92,"endTime":392.84,"body":"from there we're just doing analysis and"},{"startTime":389.66,"endTime":394.94,"body":"asking questions to your point about who"},{"startTime":392.84,"endTime":396.38,"body":"should be involved it's you know a bit"},{"startTime":394.94,"endTime":398.72,"body":"of a sensitive subject sometimes with"},{"startTime":396.38,"endTime":402.14,"body":"business owners who they let know"},{"startTime":398.72,"endTime":405.98,"body":"when in the process but I would say you"},{"startTime":402.14,"endTime":408.2,"body":"know your key financial person or people"},{"startTime":405.98,"endTime":409.88,"body":"are are going to be very important to"},{"startTime":408.2,"endTime":412.67,"body":"you in this process it's a lot of"},{"startTime":409.88,"endTime":414.95,"body":"information that we ask analyze and then"},{"startTime":412.67,"endTime":416.21,"body":"have a bunch of questions on again to"},{"startTime":414.95,"endTime":419.48,"body":"make sure we get it we get a full"},{"startTime":416.21,"endTime":421.13,"body":"analysis of the business so trying to do"},{"startTime":419.48,"endTime":424.46,"body":"that without your you know whether it be"},{"startTime":421.13,"endTime":426.41,"body":"CFO controller bookkeeper outside"},{"startTime":424.46,"endTime":429.41,"body":"accounting firm yeah whatever it is"},{"startTime":426.41,"endTime":432.28,"body":"without having them understanding what's"},{"startTime":429.41,"endTime":434.93,"body":"happening is is generally difficult and"},{"startTime":432.28,"endTime":435.95,"body":"you know the other thing is you know you"},{"startTime":434.93,"endTime":437.9,"body":"don't want to insult someone's"},{"startTime":435.95,"endTime":439.37,"body":"intelligence with all of a sudden you're"},{"startTime":437.9,"endTime":441.29,"body":"asking for a bunch of information and"},{"startTime":439.37,"endTime":443.33,"body":"digging through things that you may not"},{"startTime":441.29,"endTime":445.61,"body":"have ever looked at before people will"},{"startTime":443.33,"endTime":447.05,"body":"start to figure out what's going on and"},{"startTime":445.61,"endTime":448.7,"body":"oftentimes it's worse for them to"},{"startTime":447.05,"endTime":450.47,"body":"speculate on what's happening rather"},{"startTime":448.7,"endTime":452.24,"body":"than having that open conversation about"},{"startTime":450.47,"endTime":454.34,"body":"why we're asking for these things and"},{"startTime":452.24,"endTime":455.99,"body":"how they can be helpful right so are you"},{"startTime":454.34,"endTime":459.35,"body":"just having conversations with them"},{"startTime":455.99,"endTime":461.03,"body":"remotely or is there a point you know"},{"startTime":459.35,"endTime":462.86,"body":"I'm sure business owners would would"},{"startTime":461.03,"endTime":466.669,"body":"wonder are you actually going out and"},{"startTime":462.86,"endTime":469.01,"body":"visiting the facility but we can do it"},{"startTime":466.669,"endTime":471.74,"body":"both ways I think we've generally found"},{"startTime":469.01,"endTime":473.81,"body":"that after we've done the bulk of our"},{"startTime":471.74,"endTime":475.97,"body":"analysis with all that information we've"},{"startTime":473.81,"endTime":477.26,"body":"requested generally the most efficient"},{"startTime":475.97,"endTime":479.21,"body":"thing to do is have a face-to-face"},{"startTime":477.26,"endTime":482.09,"body":"meeting to go through all of our QA"},{"startTime":479.21,"endTime":485.36,"body":"follow-up requests and those things and"},{"startTime":482.09,"endTime":488.93,"body":"that generally will take a day or so of"},{"startTime":485.36,"endTime":490.01,"body":"time and we get we generally find that"},{"startTime":488.93,"endTime":491.33,"body":"having that be a face to face"},{"startTime":490.01,"endTime":493.97,"body":"conversation whether that's at the"},{"startTime":491.33,"endTime":495.74,"body":"company or you know at at your"},{"startTime":493.97,"endTime":497.36,"body":"attorney's office or wherever that may"},{"startTime":495.74,"endTime":497.72,"body":"be just helps the process go more"},{"startTime":497.36,"endTime":500.3,"body":"quickly"},{"startTime":497.72,"endTime":501.86,"body":"yeah and that's something at MCM that"},{"startTime":500.3,"endTime":504.86,"body":"we've required you know obviously we've"},{"startTime":501.86,"endTime":508.16,"body":"we've used Cohen on a number of times"},{"startTime":504.86,"endTime":510.56,"body":"and would request that that management"},{"startTime":508.16,"endTime":513.74,"body":"or at least a business owner allow you"},{"startTime":510.56,"endTime":517.13,"body":"the opportunity to to visit one of the"},{"startTime":513.74,"endTime":519.099,"body":"other sticking points I think from a"},{"startTime":517.13,"endTime":521.839,"body":"business owners perspective and"},{"startTime":519.099,"endTime":525.17,"body":"diligence and creates some consternation"},{"startTime":521.839,"endTime":527.45,"body":"or worry or concern is generally there's"},{"startTime":525.17,"endTime":530.19,"body":"a lot not a lot but there's personal"},{"startTime":527.45,"endTime":532.83,"body":"expenses that would be run through"},{"startTime":530.19,"endTime":535.5,"body":"a business and the business owner"},{"startTime":532.83,"endTime":537.21,"body":"entrepreneur is worried that you know"},{"startTime":535.5,"endTime":539.85,"body":"our financial and tax diligence that"},{"startTime":537.21,"endTime":542.85,"body":"it's an IRS audit or coming out to to"},{"startTime":539.85,"endTime":545.67,"body":"get me right you know right and and I"},{"startTime":542.85,"endTime":547.17,"body":"assure you it's not you know it's kind"},{"startTime":545.67,"endTime":550.11,"body":"of ties back to the conversation we were"},{"startTime":547.17,"endTime":551.46,"body":"having before you know around why we're"},{"startTime":550.11,"endTime":552.84,"body":"asking for a lot of the information we"},{"startTime":551.46,"endTime":555.3,"body":"are I'm one of the key things we want to"},{"startTime":552.84,"endTime":558.18,"body":"understand is adjustments that you bit"},{"startTime":555.3,"endTime":559.62,"body":"to right so there is the there's the"},{"startTime":558.18,"endTime":562.26,"body":"financial results of your business as"},{"startTime":559.62,"endTime":564.36,"body":"you report them and then you know what"},{"startTime":562.26,"endTime":565.62,"body":"we're really trying to get to is okay"},{"startTime":564.36,"endTime":570.11,"body":"well what are the results of this"},{"startTime":565.62,"endTime":573.18,"body":"business as you know it would be under"},{"startTime":570.11,"endTime":576.42,"body":"future ownership Yeah right so those are"},{"startTime":573.18,"endTime":578.22,"body":"things often like well you know if this"},{"startTime":576.42,"endTime":580.13,"body":"is not owned by one individual you're"},{"startTime":578.22,"endTime":583.5,"body":"probably not going to have things like"},{"startTime":580.13,"endTime":584.88,"body":"country club dues or you know travel"},{"startTime":583.5,"endTime":587.1,"body":"that may not be a hundred percent"},{"startTime":584.88,"endTime":589.77,"body":"business-related or other things like"},{"startTime":587.1,"endTime":591.18,"body":"that running cars or yeah wife's car"},{"startTime":589.77,"endTime":592.29,"body":"cellphones things like that"},{"startTime":591.18,"endTime":594.6,"body":"which you know at the end of the day"},{"startTime":592.29,"endTime":596.55,"body":"might add up and you know if you're a"},{"startTime":594.6,"endTime":598.65,"body":"business owner with you know a company"},{"startTime":596.55,"endTime":602.4,"body":"that has three million dollars of"},{"startTime":598.65,"endTime":603.69,"body":"earnings if there's you know 150 to 200"},{"startTime":602.4,"endTime":605.52,"body":"thousand dollars of that type of stuff"},{"startTime":603.69,"endTime":607.65,"body":"going through the business and we can"},{"startTime":605.52,"endTime":609.33,"body":"identify that well that just makes your"},{"startTime":607.65,"endTime":612.81,"body":"company look better because that's extra"},{"startTime":609.33,"endTime":614.91,"body":"cash flow that would be there to service"},{"startTime":612.81,"endTime":617.55,"body":"debt you know investing capex other"},{"startTime":614.91,"endTime":619.92,"body":"things going forward so it's all part of"},{"startTime":617.55,"endTime":621.99,"body":"the the process of just really making"},{"startTime":619.92,"endTime":623.34,"body":"sure that we understand what's you know"},{"startTime":621.99,"endTime":625.35,"body":"what's really there in the business in"},{"startTime":623.34,"endTime":626.79,"body":"terms of a recurring level of cash flows"},{"startTime":625.35,"endTime":629.46,"body":"right now at the end of the day that's"},{"startTime":626.79,"endTime":630.75,"body":"it's beneficial to owners because it"},{"startTime":629.46,"endTime":634.53,"body":"increases their eveyday we're always"},{"startTime":630.75,"endTime":637.74,"body":"paying a multiple you know of a vba so"},{"startTime":634.53,"endTime":639.36,"body":"that $200,000 can mean you know one to"},{"startTime":637.74,"endTime":641.64,"body":"one and a half sometimes even two"},{"startTime":639.36,"endTime":645.0,"body":"million dollars of value that's right"},{"startTime":641.64,"endTime":650.07,"body":"depending on the business so you know"},{"startTime":645.0,"endTime":653.339,"body":"becoming more commonplace now today has"},{"startTime":650.07,"endTime":656.1,"body":"been a sell side quality of earnings I"},{"startTime":653.339,"endTime":658.05,"body":"guess first maybe we we take a step back"},{"startTime":656.1,"endTime":659.76,"body":"and kind of define what quality of"},{"startTime":658.05,"endTime":661.29,"body":"earnings actually is for the business"},{"startTime":659.76,"endTime":661.55,"body":"owners that that don't know and then we"},{"startTime":661.29,"endTime":664.22,"body":"can"},{"startTime":661.55,"endTime":666.32,"body":"into the second part of that sure so our"},{"startTime":664.22,"endTime":670.339,"body":"work on the financial due diligence"},{"startTime":666.32,"endTime":671.93,"body":"really gets boiled down into a report"},{"startTime":670.339,"endTime":673.07,"body":"and the hallmark of that report is what"},{"startTime":671.93,"endTime":676.22,"body":"we call it the quality of earnings"},{"startTime":673.07,"endTime":678.62,"body":"analysis which highlights some of the"},{"startTime":676.22,"endTime":681.47,"body":"things we just talked about that is an"},{"startTime":678.62,"endTime":682.94,"body":"analysis where where we will kind of"},{"startTime":681.47,"endTime":685.94,"body":"bridge the reported results of the"},{"startTime":682.94,"endTime":687.47,"body":"business down to what you know what we"},{"startTime":685.94,"endTime":691.07,"body":"understand and believe to be the"},{"startTime":687.47,"endTime":692.839,"body":"recurring you know operating EBIT of a"},{"startTime":691.07,"endTime":695.779,"body":"business so that will take out things"},{"startTime":692.839,"endTime":697.7,"body":"like the owners personal expenses that"},{"startTime":695.779,"endTime":700.1,"body":"may be in the business it would also"},{"startTime":697.7,"endTime":701.3,"body":"adjust for things that are maybe one"},{"startTime":700.1,"endTime":704.35,"body":"time in nature that have happened over"},{"startTime":701.3,"endTime":707.6,"body":"the last 12 months so if there was a"},{"startTime":704.35,"endTime":710.87,"body":"lawsuit and you had an extra legal fees"},{"startTime":707.6,"endTime":712.79,"body":"or you know a lawsuit kind of went your"},{"startTime":710.87,"endTime":714.47,"body":"way and you had kind of a payment come"},{"startTime":712.79,"endTime":716.93,"body":"in those things that aren't really part"},{"startTime":714.47,"endTime":719.36,"body":"of the recurring you know cash flow or"},{"startTime":716.93,"endTime":721.22,"body":"operations of the business those touch"},{"startTime":719.36,"endTime":724.25,"body":"things or any things that we would think"},{"startTime":721.22,"endTime":726.649,"body":"of as non-cash right so if you're if you"},{"startTime":724.25,"endTime":729.05,"body":"have booked or reserved to pay out a big"},{"startTime":726.649,"endTime":731.029,"body":"bonus and then didn't well there's gonna"},{"startTime":729.05,"endTime":733.339,"body":"be financial statement implications to"},{"startTime":731.029,"endTime":735.68,"body":"that and we just try to take out all"},{"startTime":733.339,"endTime":737.48,"body":"that noise and get down to what we call"},{"startTime":735.68,"endTime":740.45,"body":"the adjusted EB of the business which"},{"startTime":737.48,"endTime":742.82,"body":"really then factors into your ultimate"},{"startTime":740.45,"endTime":745.79,"body":"valuation and the goal is just to have"},{"startTime":742.82,"endTime":748.88,"body":"that be kind of a clean number that's"},{"startTime":745.79,"endTime":753.89,"body":"free of any of those one-time unusual or"},{"startTime":748.88,"endTime":755.45,"body":"non-cash items right so this this type"},{"startTime":753.89,"endTime":759.2,"body":"of work has historically been very"},{"startTime":755.45,"endTime":762.07,"body":"heavily you know the work of a buyer"},{"startTime":759.2,"endTime":764.63,"body":"group or it's been very heavily a"},{"startTime":762.07,"endTime":768.29,"body":"service purchased by the by the buyers"},{"startTime":764.63,"endTime":769.88,"body":"to make sure that again the company"},{"startTime":768.29,"endTime":771.74,"body":"they're buying the financials match up"},{"startTime":769.88,"endTime":774.589,"body":"to what they've seen before they had a"},{"startTime":771.74,"endTime":776.3,"body":"chance to dive in deep something that's"},{"startTime":774.589,"endTime":780.32,"body":"really developed over the last five or"},{"startTime":776.3,"endTime":783.35,"body":"six years is a lot more business owners"},{"startTime":780.32,"endTime":785.029,"body":"have been electing to have somebody like"},{"startTime":783.35,"endTime":787.579,"body":"ourselves go through that same process"},{"startTime":785.029,"endTime":789.29,"body":"for them before they go to market for"},{"startTime":787.579,"endTime":791.329,"body":"the bid with the business so we saw we"},{"startTime":789.29,"endTime":792.949,"body":"call that a sell side quality of"},{"startTime":791.329,"endTime":794.959,"body":"earnings and that's got a lot of"},{"startTime":792.949,"endTime":795.35,"body":"benefits for the seller in particular if"},{"startTime":794.959,"endTime":797.69,"body":"you're"},{"startTime":795.35,"endTime":800.27,"body":"company is not audited you know and"},{"startTime":797.69,"endTime":802.22,"body":"you've not really had that hard external"},{"startTime":800.27,"endTime":804.02,"body":"look at your numbers before you know"},{"startTime":802.22,"endTime":806.03,"body":"other than there's maybe a bank examiner"},{"startTime":804.02,"endTime":808.88,"body":"coming every once in a while right so"},{"startTime":806.03,"endTime":811.28,"body":"that has a lot of benefit because it"},{"startTime":808.88,"endTime":814.55,"body":"will a prepare your team for the process"},{"startTime":811.28,"endTime":817.61,"body":"you're about to go through we can shake"},{"startTime":814.55,"endTime":819.89,"body":"loose any of the items that as we see"},{"startTime":817.61,"endTime":821.6,"body":"them it may typically be a concern for a"},{"startTime":819.89,"endTime":825.53,"body":"buyer if they didn't know about it and"},{"startTime":821.6,"endTime":827.18,"body":"help you prepare to either just have"},{"startTime":825.53,"endTime":829.28,"body":"that conversation with buyer groups on"},{"startTime":827.18,"endTime":831.92,"body":"why these things happened what they mean"},{"startTime":829.28,"endTime":835.43,"body":"and how does it impact your value yeah"},{"startTime":831.92,"endTime":837.5,"body":"and sort of solidify the veracity of the"},{"startTime":835.43,"endTime":839.45,"body":"numbers that's right so that you know"},{"startTime":837.5,"endTime":841.61,"body":"the one thing you really want to avoid"},{"startTime":839.45,"endTime":844.52,"body":"and the thing that can really cause"},{"startTime":841.61,"endTime":847.13,"body":"issues during a process is if you've"},{"startTime":844.52,"endTime":850.85,"body":"presented potential buyers with some"},{"startTime":847.13,"endTime":853.34,"body":"financial results and they've they've"},{"startTime":850.85,"endTime":855.14,"body":"developed a value based on those results"},{"startTime":853.34,"endTime":858.08,"body":"and then ultimately they find something"},{"startTime":855.14,"endTime":860.09,"body":"in their due diligence that that gives"},{"startTime":858.08,"endTime":861.68,"body":"them a different picture yeah so doing"},{"startTime":860.09,"endTime":863.87,"body":"the sell side quality of earnings will"},{"startTime":861.68,"endTime":866.3,"body":"help you avoid that from happening and"},{"startTime":863.87,"endTime":869.03,"body":"you know avoid having the the stress of"},{"startTime":866.3,"endTime":870.26,"body":"being a situation where you know hey"},{"startTime":869.03,"endTime":872.18,"body":"maybe at the beginning of this we've"},{"startTime":870.26,"endTime":873.89,"body":"valid your company at twenty million"},{"startTime":872.18,"endTime":875.21,"body":"dollars but then we found out these"},{"startTime":873.89,"endTime":878.9,"body":"things and now we actually think it's"},{"startTime":875.21,"endTime":880.16,"body":"closer to fifteen to seventeen having"},{"startTime":878.9,"endTime":881.51,"body":"that knowledge upfront just sets"},{"startTime":880.16,"endTime":885.53,"body":"expectations and makes the whole process"},{"startTime":881.51,"endTime":887.93,"body":"go more smoothly and then the secondary"},{"startTime":885.53,"endTime":891.14,"body":"benefit is when the buyers do come in to"},{"startTime":887.93,"endTime":893.0,"body":"do this process they've already got 75%"},{"startTime":891.14,"endTime":894.62,"body":"of the work done right they know"},{"startTime":893.0,"endTime":897.2,"body":"somebody else has taken a look at it a"},{"startTime":894.62,"endTime":898.61,"body":"lot of the analysis and schedules that"},{"startTime":897.2,"endTime":900.77,"body":"we would do on the buyer sign is already"},{"startTime":898.61,"endTime":903.95,"body":"prepared and it's ready to be handed off"},{"startTime":900.77,"endTime":907.16,"body":"to them so it shortens that time between"},{"startTime":903.95,"endTime":908.42,"body":"signing the LOI and closing and you know"},{"startTime":907.16,"endTime":910.61,"body":"that's critical that's a critical time"},{"startTime":908.42,"endTime":913.67,"body":"for the seller right because that's when"},{"startTime":910.61,"endTime":915.98,"body":"they're at most risk of value leakage"},{"startTime":913.67,"endTime":918.44,"body":"yeah that's when there's the biggest"},{"startTime":915.98,"endTime":919.64,"body":"risk from that headline number that was"},{"startTime":918.44,"endTime":922.79,"body":"put in the LOI"},{"startTime":919.64,"endTime":925.16,"body":"to what's ultimately paid and so keeping"},{"startTime":922.79,"endTime":926.96,"body":"that period of time short concise and"},{"startTime":925.16,"endTime":928.67,"body":"controlled"},{"startTime":926.96,"endTime":932.66,"body":"really important they seller and that"},{"startTime":928.67,"endTime":936.29,"body":"self/psyche oh we you know gives private"},{"startTime":932.66,"endTime":938.27,"body":"equity firms or buyers less reason to"},{"startTime":936.29,"endTime":939.47,"body":"try and reach rate you know because"},{"startTime":938.27,"endTime":942.53,"body":"you're putting everything up and out"},{"startTime":939.47,"endTime":944.3,"body":"front yeah you already did all the guess"},{"startTime":942.53,"endTime":945.92,"body":"your own financial due diligence and in"},{"startTime":944.3,"endTime":947.96,"body":"the quality of earnings and would"},{"startTime":945.92,"endTime":953.33,"body":"certainly help certainty of clothes and"},{"startTime":947.96,"endTime":955.1,"body":"you know again buyers are less apt to to"},{"startTime":953.33,"endTime":956.03,"body":"retrain or they at least they don't have"},{"startTime":955.1,"endTime":958.49,"body":"a leg to stand on"},{"startTime":956.03,"endTime":960.02,"body":"yep and you know and I think from the"},{"startTime":958.49,"endTime":962.78,"body":"from the business owner in the seller's"},{"startTime":960.02,"endTime":965.6,"body":"perspective you know if you have someone"},{"startTime":962.78,"endTime":968.36,"body":"do the sell-side Givi you know having"},{"startTime":965.6,"endTime":972.32,"body":"that process unearth both positive and"},{"startTime":968.36,"endTime":974.42,"body":"negative items is a good thing either"},{"startTime":972.32,"endTime":976.79,"body":"way because you're just prepared to have"},{"startTime":974.42,"endTime":978.53,"body":"that conversation and you know ahead of"},{"startTime":976.79,"endTime":980.24,"body":"time where pain points might be for a"},{"startTime":978.53,"endTime":982.19,"body":"potential buyer it's not gonna surprise"},{"startTime":980.24,"endTime":983.84,"body":"you you can prepare you know or at least"},{"startTime":982.19,"endTime":987.2,"body":"alleviate mitigate some of the risk and"},{"startTime":983.84,"endTime":989.18,"body":"some of your answers so I have to put"},{"startTime":987.2,"endTime":991.55,"body":"you on the spot here but generally you"},{"startTime":989.18,"endTime":995.24,"body":"can give me a range of what a quality of"},{"startTime":991.55,"endTime":996.43,"body":"earnings generally cost the the real"},{"startTime":995.24,"endTime":1000.28,"body":"answer is it depends"},{"startTime":996.43,"endTime":1003.64,"body":"like with anything else yeah size"},{"startTime":1000.28,"endTime":1004.93,"body":"complexity of the business you know what"},{"startTime":1003.64,"endTime":1007.9,"body":"the shape of the financial records are"},{"startTime":1004.93,"endTime":1009.79,"body":"in now but you know it really you know"},{"startTime":1007.9,"endTime":1012.91,"body":"for a middle market company can range"},{"startTime":1009.79,"endTime":1015.1,"body":"anywhere from you know thirty to seventy"},{"startTime":1012.91,"endTime":1017.62,"body":"thousand dollars based on how much work"},{"startTime":1015.1,"endTime":1019.15,"body":"is needed yeah but in in my mind if I"},{"startTime":1017.62,"endTime":1021.46,"body":"was a seller or a business owner that's"},{"startTime":1019.15,"endTime":1024.07,"body":"thirty is seventy thousand dollars well"},{"startTime":1021.46,"endTime":1026.02,"body":"spent going into a transaction knowing"},{"startTime":1024.07,"endTime":1028.24,"body":"all the great things the flaws and"},{"startTime":1026.02,"endTime":1030.31,"body":"setting expectations for myself and not"},{"startTime":1028.24,"endTime":1032.92,"body":"allowing that potential buyer to come in"},{"startTime":1030.31,"endTime":1034.75,"body":"and try to retreive yeah did the the"},{"startTime":1032.92,"endTime":1036.91,"body":"level of you know additional certainty"},{"startTime":1034.75,"endTime":1038.68,"body":"that it gives you as a seller I think we"},{"startTime":1036.91,"endTime":1040.99,"body":"found has been really helpful for our"},{"startTime":1038.68,"endTime":1042.209,"body":"clients on the sales and so now I'm the"},{"startTime":1040.99,"endTime":1045.28,"body":"quality of earnings what if I'm a"},{"startTime":1042.209,"endTime":1046.63,"body":"smaller business or you just on the"},{"startTime":1045.28,"endTime":1049.21,"body":"diligence side I'm a smaller business"},{"startTime":1046.63,"endTime":1052.96,"body":"and I'm operating QuickBooks or a less"},{"startTime":1049.21,"endTime":1055.6,"body":"sophisticated financial reporting"},{"startTime":1052.96,"endTime":1059.83,"body":"software is that a problem"},{"startTime":1055.6,"endTime":1062.29,"body":"I generally no I don't don't think it is"},{"startTime":1059.83,"endTime":1065.08,"body":"in particular if you're a business using"},{"startTime":1062.29,"endTime":1067.15,"body":"QuickBooks so that is such a ubiquitous"},{"startTime":1065.08,"endTime":1071.32,"body":"system and the in the lower-middle"},{"startTime":1067.15,"endTime":1072.7,"body":"marketing especially it's that's such a"},{"startTime":1071.32,"endTime":1074.5,"body":"ubiquitous instrument in the"},{"startTime":1072.7,"endTime":1077.41,"body":"lower-middle market especially that"},{"startTime":1074.5,"endTime":1079.21,"body":"firms like us we have our own ability to"},{"startTime":1077.41,"endTime":1081.64,"body":"to use QuickBooks so if the business"},{"startTime":1079.21,"endTime":1085.059,"body":"owner is comfortable with it we can just"},{"startTime":1081.64,"endTime":1086.77,"body":"take that whole file which may have 60"},{"startTime":1085.059,"endTime":1088.27,"body":"70 % of the stuff we're going to ask you"},{"startTime":1086.77,"endTime":1090.28,"body":"to produce for us and we can just pull"},{"startTime":1088.27,"endTime":1092.559,"body":"those records ourselves that saves time"},{"startTime":1090.28,"endTime":1095.32,"body":"for you know you the business owner your"},{"startTime":1092.559,"endTime":1097.09,"body":"team and compiling all that data and all"},{"startTime":1095.32,"endTime":1099.58,"body":"we need is the file the password to get"},{"startTime":1097.09,"endTime":1101.89,"body":"into it and you know can really shorten"},{"startTime":1099.58,"endTime":1104.08,"body":"the amount of time and effort your team"},{"startTime":1101.89,"endTime":1106.02,"body":"needs to spend on it if you know you're"},{"startTime":1104.08,"endTime":1109.47,"body":"willing to give us that access and"},{"startTime":1106.02,"endTime":1112.48,"body":"sometimes with a less sophisticated"},{"startTime":1109.47,"endTime":1115.21,"body":"reporting system you know they might not"},{"startTime":1112.48,"endTime":1117.64,"body":"be able to answer some of the questions"},{"startTime":1115.21,"endTime":1118.9,"body":"that you're asking so if you know that"},{"startTime":1117.64,"endTime":1121.15,"body":"they don't have a sophisticated system"},{"startTime":1118.9,"endTime":1122.83,"body":"maybe they don't know gross margin by by"},{"startTime":1121.15,"endTime":1124.27,"body":"product line yeah they might have to do"},{"startTime":1122.83,"endTime":1126.429,"body":"a physical at the end of every month or"},{"startTime":1124.27,"endTime":1128.14,"body":"something like that hi how do you deal"},{"startTime":1126.429,"endTime":1130.36,"body":"with that in a quality every business"},{"startTime":1128.14,"endTime":1131.44,"body":"center can't produce you know the answer"},{"startTime":1130.36,"endTime":1132.94,"body":"to your question yep"},{"startTime":1131.44,"endTime":1136.179,"body":"so I think the first thing we would do"},{"startTime":1132.94,"endTime":1138.61,"body":"is just at the beginning of our process"},{"startTime":1136.179,"endTime":1139.69,"body":"we'd take our standard request list and"},{"startTime":1138.61,"endTime":1141.49,"body":"just walk through it with the company"},{"startTime":1139.69,"endTime":1143.26,"body":"and find out you know hey these are the"},{"startTime":1141.49,"endTime":1144.97,"body":"general things we would ask for you know"},{"startTime":1143.26,"endTime":1146.71,"body":"you tell us do you think you have this"},{"startTime":1144.97,"endTime":1148.51,"body":"or not do you have something similar or"},{"startTime":1146.71,"endTime":1150.64,"body":"not you know because what we're what"},{"startTime":1148.51,"endTime":1152.65,"body":"we're trying to get to as an answer or"},{"startTime":1150.64,"endTime":1154.57,"body":"an analysis so if you don't have exactly"},{"startTime":1152.65,"endTime":1156.429,"body":"what we're asking for well what is the"},{"startTime":1154.57,"endTime":1159.01,"body":"what else do you have how can we how can"},{"startTime":1156.429,"endTime":1161.95,"body":"we find a way around this just to get to"},{"startTime":1159.01,"endTime":1164.58,"body":"the analysis we're trying to do and"},{"startTime":1161.95,"endTime":1167.35,"body":"generally we I think we can find a way"},{"startTime":1164.58,"endTime":1168.37,"body":"sometimes sometimes you just can't get"},{"startTime":1167.35,"endTime":1171.57,"body":"there"},{"startTime":1168.37,"endTime":1174.46,"body":"and you know that just ends up being a"},{"startTime":1171.57,"endTime":1176.95,"body":"finding that we have in our process and"},{"startTime":1174.46,"endTime":1179.62,"body":"we have to let someone like the buyer"},{"startTime":1176.95,"endTime":1182.23,"body":"the buyer our client know that well we"},{"startTime":1179.62,"endTime":1184.0,"body":"can we can tell you these three things"},{"startTime":1182.23,"endTime":1186.22,"body":"but we can't tell you things four and"},{"startTime":1184.0,"endTime":1188.44,"body":"five that we might want to say okay we"},{"startTime":1186.22,"endTime":1189.94,"body":"can we can tell you how much of this"},{"startTime":1188.44,"endTime":1192.97,"body":"product they're selling and whom they're"},{"startTime":1189.94,"endTime":1194.65,"body":"selling it to but just because of lack"},{"startTime":1192.97,"endTime":1197.08,"body":"investigation the system we can't tell"},{"startTime":1194.65,"endTime":1198.28,"body":"you exactly the margin of each of those"},{"startTime":1197.08,"endTime":1202.63,"body":"and the differences in the margin"},{"startTime":1198.28,"endTime":1203.74,"body":"between them and ultimately that's if"},{"startTime":1202.63,"endTime":1205.87,"body":"there is nothing we can do in that"},{"startTime":1203.74,"endTime":1207.22,"body":"regard but again like I said sometimes"},{"startTime":1205.87,"endTime":1210.039,"body":"there are sometimes there's alternate"},{"startTime":1207.22,"endTime":1212.02,"body":"ways to get to some estimates that's not"},{"startTime":1210.039,"endTime":1214.75,"body":"exactly sis system driven information"},{"startTime":1212.02,"endTime":1217.9,"body":"but we can come to some estimates but at"},{"startTime":1214.75,"endTime":1221.2,"body":"the end of the day that will just color"},{"startTime":1217.9,"endTime":1224.559,"body":"the again the overall value assessments"},{"startTime":1221.2,"endTime":1228.429,"body":"of the buyer you know they can't prove"},{"startTime":1224.559,"endTime":1231.13,"body":"out so to say some initial theories that"},{"startTime":1228.429,"endTime":1233.53,"body":"they had on where exactly the margin or"},{"startTime":1231.13,"endTime":1236.53,"body":"the dollars were coming from by"},{"startTime":1233.53,"endTime":1238.0,"body":"by-product or you know by customer you"},{"startTime":1236.53,"endTime":1240.49,"body":"know it just meant some whether that"},{"startTime":1238.0,"endTime":1244.419,"body":"ends up being a you know a big deal to"},{"startTime":1240.49,"endTime":1245.71,"body":"the buyer yeah and but hey at the end of"},{"startTime":1244.419,"endTime":1248.26,"body":"the day we can only analyze what"},{"startTime":1245.71,"endTime":1249.49,"body":"information there is so sometimes we"},{"startTime":1248.26,"endTime":1251.14,"body":"have to find some workarounds and then"},{"startTime":1249.49,"endTime":1253.299,"body":"sometimes we just have to just"},{"startTime":1251.14,"endTime":1255.52,"body":"ultimately caveat it that hey there are"},{"startTime":1253.299,"endTime":1256.6,"body":"some things and ultimately I think"},{"startTime":1255.52,"endTime":1258.19,"body":"everybody knows especially a"},{"startTime":1256.6,"endTime":1260.89,"body":"sophisticated behind a private equity"},{"startTime":1258.19,"endTime":1262.84,"body":"firm is going to know that perfect"},{"startTime":1260.89,"endTime":1265.45,"body":"information doesn't always exist it"},{"startTime":1262.84,"endTime":1267.64,"body":"perfect information rarely exists and"},{"startTime":1265.45,"endTime":1268.69,"body":"sometimes there are things you know and"},{"startTime":1267.64,"endTime":1273.64,"body":"sometimes there's things you don't know"},{"startTime":1268.69,"endTime":1275.409,"body":"on the tax side of it and your"},{"startTime":1273.64,"endTime":1278.26,"body":"experience what have been some of the"},{"startTime":1275.409,"endTime":1282.73,"body":"the common things that might crater a"},{"startTime":1278.26,"endTime":1284.83,"body":"deal on on the tax side you know some of"},{"startTime":1282.73,"endTime":1286.9,"body":"the common things I'm a tax ID where I"},{"startTime":1284.83,"endTime":1288.34,"body":"think a business owner who's thinking of"},{"startTime":1286.9,"endTime":1290.409,"body":"selling their business can do very"},{"startTime":1288.34,"endTime":1292.99,"body":"easily just to get them give themselves"},{"startTime":1290.409,"endTime":1295.36,"body":"ahead of the curve it's just making sure"},{"startTime":1292.99,"endTime":1298.78,"body":"all of their tax documentation around"},{"startTime":1295.36,"endTime":1301.48,"body":"their structure is in order you know if"},{"startTime":1298.78,"endTime":1303.059,"body":"you have multiple shareholders just make"},{"startTime":1301.48,"endTime":1306.4,"body":"sure you've got the documentation around"},{"startTime":1303.059,"endTime":1307.99,"body":"you know who owns what percentage you"},{"startTime":1306.4,"endTime":1310.71,"body":"know who's the rightful owners of all"},{"startTime":1307.99,"endTime":1313.27,"body":"the shares how you've distributed"},{"startTime":1310.71,"endTime":1315.669,"body":"dividends to those shareholders over"},{"startTime":1313.27,"endTime":1317.98,"body":"time that can be very important if"},{"startTime":1315.669,"endTime":1319.96,"body":"you're an S corporation you know you"},{"startTime":1317.98,"endTime":1322.059,"body":"should have certain notifications from"},{"startTime":1319.96,"endTime":1323.86,"body":"the IRS that say you know yes we've"},{"startTime":1322.059,"endTime":1324.85,"body":"accepted that you're an S corporation"},{"startTime":1323.86,"endTime":1327.55,"body":"and"},{"startTime":1324.85,"endTime":1329.59,"body":"can operate and file your taxes as such"},{"startTime":1327.55,"endTime":1331.06,"body":"and so making sure that simple things"},{"startTime":1329.59,"endTime":1332.77,"body":"like you have those documents just in"},{"startTime":1331.06,"endTime":1336.55,"body":"order and ready for somebody like us to"},{"startTime":1332.77,"endTime":1339.28,"body":"take a look at goes a long way and you"},{"startTime":1336.55,"endTime":1342.16,"body":"know from there it's it gets a little"},{"startTime":1339.28,"endTime":1345.49,"body":"more detailed as you go into the state"},{"startTime":1342.16,"endTime":1347.68,"body":"level but again relatively simple things"},{"startTime":1345.49,"endTime":1349.17,"body":"like if you're selling a product and you"},{"startTime":1347.68,"endTime":1351.79,"body":"think you're exempt from sales tax"},{"startTime":1349.17,"endTime":1354.79,"body":"collect some exemption certificates it's"},{"startTime":1351.79,"endTime":1357.51,"body":"we see that a lot it's a simple simple"},{"startTime":1354.79,"endTime":1360.0,"body":"thing that alleviates a lot of risk"},{"startTime":1357.51,"endTime":1361.93,"body":"again and if if you're dealing with"},{"startTime":1360.0,"endTime":1364.36,"body":"particularly if your customers are"},{"startTime":1361.93,"endTime":1365.83,"body":"larger companies they get those requests"},{"startTime":1364.36,"endTime":1367.09,"body":"all the time and you know it should be"},{"startTime":1365.83,"endTime":1370.9,"body":"pretty simple for them to get that to"},{"startTime":1367.09,"endTime":1372.76,"body":"you and just takes a whole issue off the"},{"startTime":1370.9,"endTime":1374.41,"body":"table right away if you just have that"},{"startTime":1372.76,"endTime":1378.13,"body":"documentation especially if it's a stock"},{"startTime":1374.41,"endTime":1380.29,"body":"sale - yes what so and maybe you know"},{"startTime":1378.13,"endTime":1382.0,"body":"that drawing that distinction would be"},{"startTime":1380.29,"endTime":1384.25,"body":"helpful for a business owner but you"},{"startTime":1382.0,"endTime":1386.98,"body":"know in terms of the level of tax due"},{"startTime":1384.25,"endTime":1390.18,"body":"diligence we're going to do if you know"},{"startTime":1386.98,"endTime":1392.29,"body":"you are selling the stock of the company"},{"startTime":1390.18,"endTime":1396.73,"body":"we're gonna have to dig a lot deeper"},{"startTime":1392.29,"endTime":1398.26,"body":"because those past tax issues are going"},{"startTime":1396.73,"endTime":1400.21,"body":"to transfer to the buyer if you're"},{"startTime":1398.26,"endTime":1401.68,"body":"buying the stock of the company if"},{"startTime":1400.21,"endTime":1403.33,"body":"you're doing an asset sale there's"},{"startTime":1401.68,"endTime":1405.16,"body":"there's more of a cut-off on some of"},{"startTime":1403.33,"endTime":1408.1,"body":"those historical potential tax"},{"startTime":1405.16,"endTime":1410.08,"body":"liabilities so that can create a little"},{"startTime":1408.1,"endTime":1411.37,"body":"bit of a difference in the depth of the"},{"startTime":1410.08,"endTime":1413.67,"body":"tax due diligence just because there's"},{"startTime":1411.37,"endTime":1416.86,"body":"less of a risk for the buyer yeah I"},{"startTime":1413.67,"endTime":1420.46,"body":"think this was extremely extremely"},{"startTime":1416.86,"endTime":1423.73,"body":"helpful if is there one thing that you"},{"startTime":1420.46,"endTime":1425.2,"body":"could leave a business owner with you"},{"startTime":1423.73,"endTime":1428.25,"body":"know aside from doing this else iqe"},{"startTime":1425.2,"endTime":1433.27,"body":"didn't to just prepare for this type of"},{"startTime":1428.25,"endTime":1434.56,"body":"diligence both financial and tax I'll"},{"startTime":1433.27,"endTime":1437.77,"body":"just reiterate something I said before"},{"startTime":1434.56,"endTime":1439.9,"body":"is that this will be a lot easier on you"},{"startTime":1437.77,"endTime":1442.06,"body":"if you get a couple key people from your"},{"startTime":1439.9,"endTime":1443.02,"body":"organization involved and everybody's"},{"startTime":1442.06,"endTime":1446.65,"body":"going to make the decision for"},{"startTime":1443.02,"endTime":1448.36,"body":"themselves when that time is but that"},{"startTime":1446.65,"endTime":1450.64,"body":"especially on the financial and tax side"},{"startTime":1448.36,"endTime":1451.84,"body":"that'll really alleviate a lot of the"},{"startTime":1450.64,"endTime":1454.51,"body":"stress on you the business owner because"},{"startTime":1451.84,"endTime":1455.99,"body":"you'll have four or five other streams"},{"startTime":1454.51,"endTime":1458.99,"body":"of diligence going on that"},{"startTime":1455.99,"endTime":1461.3,"body":"really need your time and attention more"},{"startTime":1458.99,"endTime":1463.97,"body":"than the financial side would yeah so I"},{"startTime":1461.3,"endTime":1465.5,"body":"think just really again it's a tough"},{"startTime":1463.97,"endTime":1466.55,"body":"situation sometimes and when you tell"},{"startTime":1465.5,"endTime":1469.13,"body":"folks you're thinking of selling your"},{"startTime":1466.55,"endTime":1470.27,"body":"business but it'll really pay some"},{"startTime":1469.13,"endTime":1471.29,"body":"dividends if you get your financial"},{"startTime":1470.27,"endTime":1473.12,"body":"person involved"},{"startTime":1471.29,"endTime":1475.04,"body":"oh great Justin thank you so much for"},{"startTime":1473.12,"endTime":1476.92,"body":"taking the time we really appreciate it"},{"startTime":1475.04,"endTime":1479.03,"body":"sure thing Bob yeah take care all right"},{"startTime":1476.92,"endTime":1480.5,"body":"thank you for taking the time to watch"},{"startTime":1479.03,"endTime":1482.39,"body":"another episode of well-capitalized"},{"startTime":1480.5,"endTime":1484.01,"body":"please subscribe to our channel below if"},{"startTime":1482.39,"endTime":1485.48,"body":"you have any additional questions please"},{"startTime":1484.01,"endTime":1487.93,"body":"leave them in the comments section thank"},{"startTime":1485.48,"endTime":1487.93,"body":"you"}]}