Gift Card issues in buying selling small businesses

professional profile

May 15, 2024

by a professional from Bishop's University in Moncton, NB, Canada

***New Video Alert!

This week we discuss gift cards.

What are they?

How should they be recorded?

What other questions to ask?

How do people get ripped off when buying a business that sells gift cards?

Learn more by watching this week’s video: https://youtu.be/DQXomD8aqCA

Cheers

See you over on YouTube

David C Barnett


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Reply by a searcher
from The University of Chicago in Cleveland, OH, USA
Thanks for sharing this David. Very helpful in thinking through how to approach a significant gift card balance in a business I'm looking at.
commentor profile
Reply by a searcher
from The University of Chicago in Cleveland, OH, USA
I'm likely to pursue the path of performing an adjustment at time of close (either asking for a purchase price adjustment, or leaving cash in the business). Do you have any rules of thumb or formulas on how to evaluate expected shrinkage in order to create a fair amount against the full gift card balance? (This is for a retail business, not services)
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