Here's what could be the difference between a lucrative outcome and disappointment for business owners now.
You are not alone!
Throughout the country, hundreds of thousands of business owners are struggling to cope with the massive impact of the coronavirus shutdown. For some, securing outside funding through an equity sale may be the only way to survive. For others, the pandemic and looming recession may have accelerated their timelines for moving on to something else.
Whatever the reason you may have to consider selling your business, do not underestimate the importance of having a smart tax strategy in the run-up to a sale. While tax problems rarely sink deals entirely, they often cause unnecessary headaches and can result in substantially less money in your pockets than would otherwise have been the case.
There are two key elements of tax planning for a sale. The first is getting your own tax house in order. The second is ensuring that the sale results in the most advantageous tax treatment possible for you.
Even in challenging economic times like we are facing now, buyers are out there snapping up businesses. By following these two principles and having a coherent tax plan in place before the sale, you can better define your goals and navigate negotiations to achieve the result you want and are looking for
Michel Ouellette JMD, ll.l., ll.m
Systemic Strategic Planning / Crisis & Reputation Management