For all that you plan ahead,
the right buyer for your business may sneak up on you unexpectedly.
For all that you plan ahead, the right buyer for your business may sneak up on you unexpectedly.
What that means is if you haven’t done sufficient tax planning several years in advance, you will likely pay a lot more in taxes than you need to pay. Even though the thought of this hurts, many owners still struggle to do exit-planning in advance of it actually "being the time".
The 3 biggest reasons why owners flush money down the drain by putting tax (and exit) planning off:
The 3 biggest reasons why owners put tax (and exit) planning off:
(well, every owner is different but here’s what we regularly hear)
I don’t want to count my chickens before they hatch
I’m busy dealing with issues in the business, I’ll do it later
I’m planning on selling it in five years, so I’ve got time
For many owners, the equity in your business is a huge proportion of your overall wealth and the difference between no tax planning and proactive tax planning can be significant.
Likewise, sometimes price negotiation with the buyer is not easy. Saving on taxes can increase what you get to keep from the sale and could, in the worst case scenario, enable you to take a lower price but still "net" the same as you would with a higher price had you done no tax planning, and enable you to avoid a stalemate and get the deal done.