You know everything about your business or so every business owner assumes.  Many experience a rude awakening, however, when they attempt to sell or recapitalize their business and the buyer begins the due diligence process.  The bad news is that you can't avoid the due diligence process if you ever intend to sell or recapitlize your business.  However, you can predict how buyers will generally approach the process of due diligence and prepare for it.  Here are things that are important to all buyers we've ever encountered and questions that you will be asked:

1. How much cash does the company generate? Buyers want to know how much free cash flow your business generates. They’ll want a reasonable salary for the business’s CEO, as well as enough additional free cash flow to pay for the business over five to seven years.
   
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Much has been written on the topic of what changes to expect in the tax laws with the Obama administration.  However, given the current economic situation, status quo is the likely watchword as it relates the the taxes you pay.

We're reading that expectations of most "experts" are that the current tax law will be extended until the economic conditions improve.  So, don't expect much in terms of changes to the capital gains rate.  In fact, the rate may even be lowered (after threats during the presidential campaign that it might rise) to entice more investment capital into the markets.  Also, expect that the current "plug" to alternative minimum tax will be extended with no real reform coming in this are for as long as several years.