God Bless Retirement

God Bless Retirement (GBR) manages the entire process of buying or selling a business for clients. We are a family-led brokerage with certified valuation experts, financing resources, and effective targeting of private and public marketplaces for clients. GBR redefines lower-market client care by dignifying buyers and sellers, supporting generational financial-life events, and helping secure legacies. Our mission is to strengthen families for generations to come.

Connect with regional lenders, commercial brokers, and family offices for a brief Q&A and gathering to explore emerging opportunities. Join a professional gathering focused on the North Texas and DFW economic outlook and its impact on real estate and banking. We look forward to hearing from Shane Smith, Director of Research at Downtown Fort Worth, Inc., and Shane Benner, Faculty in the Finance Department and Center for Real Estate at the TCU Neeley School of Business. Registration is free, thanks to our strategic partners: https://lnkd.in/ekXXev8B

Join God Bless Retirement for a professional gathering of family offices,?regional lenders, and commercial brokers. Learn from a panel featuring TCU faculty insights and industry analysis discussing the North Texas and DFW-specific economic outlook, and its impact on real estate and banking. https://lnkd.in/ekXXev8B

Consider this scenario: An S Corp owns $12 million in real estate and a $10 million business. The challenge? The buyer wants the business but not the real estate. Selling the business equity without the real estate can trigger tax liabilities due to the difference between the real estate's basis and its current value. So, how can you close this deal without incurring a huge tax burden? Keep reading ... At the recent Texas Association of Business Brokers (TABB) annual conference, Monty Walker, CPA articulated the roadmap. Example Breakdown: In our scenario, the real estate has a basis of $1 million, and its current value is $12 million. If the buyer only wants the business, selling the equity without first removing the real estate could result in significant tax liabilities for the seller. Solution: Walker introduced the concept of utilizing the F Report (Section 368 A 1f). By setting up a parent entity to hold the S Corp, and converting the S Corp into a single-member LLC under the parent, the real estate can be moved without triggering a taxable event. This allows the business to be sold while the real estate is retained, keeping the transaction tax-efficient. This strategy comes from the F Report (Section 368 A 1f), which is a part of the U.S. Internal Revenue Code dealing with tax-free reorganizations. It allows for the restructuring of an S Corp into a single-member LLC under a parent entity. This conversion enables assets like real estate to be moved without creating a taxable event, providing sellers with significant tax relief while allowing the buyer to acquire the business. Here’s the simplified formula: Parent?Entity?(PE)=S?Corp?Real?Estate?(RE)+S?Corp?Business Post-restructuring: PE→SMLLC?(Single?Member?LLC) Taxable event? $0. Walker also stressed the importance of understanding working capital and differentiating it from liquidity. Many brokers are familiar with the term "cash-free, debt-free" but may not realize that it doesn’t mean liability-free. Properly categorizing assets (like operating vs. non-operating) is key in ensuring the business’s value is preserved. In transactions exceeding $10 million, we advise clients to include working capital in the valuation. For instance, a company with $5 million in accounts receivable and $3 million in inventory must ensure those assets are properly accounted for to avoid undervaluing the business. #BusinessBrokerage #SCorp #RealEstateSales #WorkingCapital #TaxStrategies #MergersAndAcquisitions #BusinessValuation

?? What is Seller’s Discretionary Earnings (SDE) and Why Does it Matter in Business Sales? When selling a small business, one of the most important financial metrics to understand is Seller's Discretionary Earnings (SDE). This figure helps both sellers and buyers evaluate the true earning potential of a business. A quick breakdown: 1?? What is SDE? SDE is the net profit of a business PLUS the owner’s compensation and perks, such as health insurance, vehicle expenses, and one-time discretionary expenses. It also includes add-backs like depreciation, interest, and amortization. 2?? Why is it Important?? SDE allows potential buyers to understand the cash flow they can expect once they take over the business. It normalizes the financials by removing personal and discretionary expenses that won’t continue under new ownership. 3?? How Does it Impact Valuation??? For small businesses, the sale price is often a multiple of SDE. The higher your SDE, the higher the potential sale price. That’s why clear, accurate accounting is critical when preparing a business for sale. 4?? Boosting Business Value?? To increase your business’s value, focus on consistently growing your SDE by managing both revenue and discretionary expenses carefully. For sellers, SDE is your roadmap to maximizing value. ?? As the business scales up, so can its SDE, providing greater earning potential and attracting higher multiples in valuation. Add-Backs Matter: Adding back one-time, discretionary, and non-essential expenses becomes increasingly important as larger businesses may have more complex expense structures. Correctly identifying these add-backs can boost the SDE and significantly raise the valuation. Carefully account for and adjust one-time or personal expenses that can be added back to the earnings, increasing the SDE. Impact of Revenue Growth: Consistent revenue growth generally lowers perceived risk, making a business more attractive to buyers or investors. Example of a very simplified SDE financial model for a $5 million business: 1?? Revenue: $5,000,000/year 2?? Operating Expenses: $4,000,000/year 3?? Owner’s Compensation: $250,000/year 4?? Interest & Depreciation Add-Backs: $50,000/year Simplified SDE Calculation: SDE = Net Profit + Owner’s Compensation + Add-Backs SDE = ($5,000,000 - $4,000,000) + $250,000 + $50,000 SDE = $1,300,000/year #BusinessValuation #SDE #SmallBusinessSales #BusinessBrokerage #FinancialTips #CashFlow

Welcome new members God Bless Retirement, Pape-Dawson Engineers, and VMG - Vidaurri Management Group, to Downtown Fort Worth, Inc. We're excited to work alongside you to make Downtown Fort Worth an even more vibrant place to live, work, and play. For more information on membership, visit https://bit.ly/49YS2yJ