SELLING A BISOMESS OR BUYING AN EXISTING BUSINESS
In today’s episode and article, I talk about why you should start early to plan on selling your business so you can optimize the sale price – like washing and waxing your car before you list it for sale. First consider getting your business finances in order. Using just old tax returns doesn’t give the true value or cash flow of a business (tax returns are a single purpose document created solely to determine a business’ tax liability). For example, you may be paying for a vehicle from cash flow, but a buyer may already have a vehicle. Taking this deduction out of your financial statements can add that monthly vehicle payment back into the cash stream. Another tip, you should always get multiple offers (abundance) to establish what your business is really worth.
Another consideration is if you’re doing an asset sale v. equity sale. Often the purchaser will dictate this procedure, but it can have tax consequences that should be considered well before the documents are drafted. I’m working on a business sale now where there’s not even a buyer yet, but I’ve brought in a C.P.A. to work with the seller to get the finances and financial statements in order, and to figure out the best way to structure the deal in order to preserve capital for the sellers’ retirement.
Listen here, then call me if you have any questions or need legal help with selling or buying an existing business
Episode 7: Selling a business or Buying a business
Thanks to Matt Mittan and BizRadio AM 1350 in Asheville for letting me present this series.
Also be sure to check out the Asheville Trusted Advisors Council’s special 45 minute podcast on risk management strategies for your business. Hear how a business lawyer (me), a CPA (Samantha Winogrond) and a commercial insurance agent (Lee Goldberg) work together to protect your business assets.
For this and all your businesses legal needs, call me in Asheville, Hendersonville, Fletcher, Waynesville, and all of Western North Carolina at (312) 671-6453, email at palermo@palermolaw.com, or for more information palermolaw.com.