As is common with any medium or large-scale business transaction, the Certified Public Accountant (CPA) plays many roles in the buying and selling process. In today’s interview, we interview Sam Bachstein, an audit partner and CPA at Holthouse Carlin & Van Trigt, LLP. With 15 years’ experience as a CPA, Mr. Bachstein is the ideal professional to answer our most complex questions as they relate to the CPA’s role in various business transactions. Above and beyond the topic of how CPA’s can assist in business valuations, purchases and sales, Mr. Bachstein also introduces us to some important accounting principles as they relate to a successful business transaction.
Key Points from our Conversation
- The acquisition of a business is a major transaction that needs to be considered in your overall tax and financial planning, and it is your CPA who generally knows your specific tax/financial position, and he or she is the one who can provide you with invaluable guidance in this area.
- It is essential that the seller’s CPA meets with the seller’s attorneys and other advisors at an early stage to ensure that the seller’s long-term financial plan is not damaged as a result of poor planning and execution.
- It is important to know how these measurements are calculated when buying or selling a business, because SDCF, EBIT and EBITDA are commonly used as the income basis in various multiple-driven valuation methods.
- It is important that everyone on the team communicate and be on the same page, as it will always result in a smoother transaction with fewer complications and disagreements post-sale.