There has probably never been a better time to sell a business – for many reasons; The biggest may be an upcoming increase in the capital gains tax.
When you sell a capital asset—such as stocks, real estate, or a business—for more than its original purchase price (its “basis”), that realized profit is a capital gain. The tax the IRS levies on this profit is the capital gains tax. For business owners, this tax is a critical component of exit planning, as the sale of your company will likely represent the largest single financial transaction of your life.
Amid ongoing discussions about potential changes to federal tax policy, capital gains tax rates may increase in the coming years. An increase would directly affect the financial outcome of a sale, so owners should ask themselves, “Should I sell my business now, before there is an increase in the capital gains tax?”
Whether you’re interested in selling or not, now is also a great time to find out what your business is worth on the market through an objective business valuation for business owners. Currently, buyer activity is high, including interest from high net worth individuals, strategic buyers, and private equity groups. It’s a seller’s market! There is an extraordinary amount of pent-up capital waiting for the right business opportunity in which to invest, allowing many businesses to sell at a premium.
Right now, you should take the time to see what your company might be worth today. A professional business valuation provides a realistic, data-driven assessment of your company’s fair market value, removing emotion and guesswork from the equation. A business valuation for business owners ensures no money is left on the table by underpricing, and that the asking price is realistic and attractive to buyers. Ultimately, it serves as the foundation for your entire financial strategy, helping you understand if the potential sale proceeds will meet your retirement or post-sale goals.
If you’re interested in a business valuation, contact Sound Business Brokers today! Our business broker experts will give you an accurate view of your company’s value on the open market and can help you take the first steps towards selling your business.
You should get all the facts. We’ll do all the homework. You make all the decisions.
I know sometimes the more successful you are, the more difficult it is to imagine ever selling your business – even though you could move on to even better things. It’s important to have the facts either way.
