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Old 06-28-2013, 05:42 PM
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GreenUtah GreenUtah is offline
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Join Date: May 2005
Location: SLC, UT
Posts: 866
If the company owner is doing the job of a manager or crew lead, you should already know what that costs if you are buying businesses. If the jobs that you know have to be there for the business are not being represented on their balance sheet, then there will likely be other problems with the actual value of their company and you'll have to more thoroughly investigate, likely with your accountant.

For tax purposes, most owners will be trying to make their net look as small as possible, not trying to hide their labor to look like pure profit, which will likely result in a higher tax burden and that will be the rub for those looking to sell.

Profit per job with a full accounting of what you know has to be included to perform that job will give you a much more accurate accounting of what their net actually is.
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