Selling your business is more complex than selling anything else. It’s requires a tremendous amount of planning and information gathering.
One of the major mistakes business owners make is failing to plan far enough in advance to ensure they’re maximizing the proceeds of the sale.
It’s not how much proceeds you get from the sale that matters most, but how much you get to keep. You can’t just decide to put your business on the market and expect to maximize your after-tax proceeds.
Optimal Corporate Structure
One of the most important planning steps is making sure your corporate structure is set up to minimize the taxes you will have to pay upon sale. With an ineffective structure, you’re just leaving money on the table. There are various ways to reorganize your company and it takes a high level of tax expertise to set up the right corporate structure to meet your objectives.
Asset Sale Vs. Share Sale
When you’re selling your business, it’s important to ensure that the transaction is structured in a way that is fair to you and minimizes your taxes.
There are two types of sales: asset sales or share sales. Buyers generally prefer an asset sale because it minimizes their exposure to liabilities, but sellers generally prefer share sales to access their lifetime capital gains exemption, and also to avoid any future business obligations.
Building Business Value
Minimizing your taxes is only one part of the equation. Perhaps even more important is maximizing the value of your business well in advance of the contemplated sale. You deserve to get full value for all the years of hard work you’ve put into your business, and we can help you do just that with our management consulting services.
Sign up for our Unleashed package and we’ll help you take your business to new heights. This package gives you complete access to all our partners and their specific areas of expertise, so you always have the advice and services you need, when you need them.
Working in partnership with you, we’ll:
- Address core business problems, including inefficiencies that are holding you back
- Identify ways to generate higher revenues and profits
- Analyze critical business value drivers
- Help you get clarity by uncovering the answers to key questions about your business
Change your management practices so you can transform the culture of your business, which will take many of the burdens of business ownership off of you
Long-Term Planning for the Sale of Your Business is Essential
If you’re planning to sell your business, it’s best to start planning several years in advance to maximize your revenues, profits, enhance business value, and maximize the cash you get to keep when the business is sold.