Is 2020 the right time to sell my company?

We were recently asked by a client if current market conditions are right for the sale of his company. There are two parts to the question: “current market conditions” and “for his company.”  The primary driver of the decision should be an analysis of his particular, unique business.  Current market conditions are an external driver of his company's performance and also impact the price a buyer will pay for his company, but they are only one factor of many factors that impact business valuation and timing for a sale.

Section 338 Business Sale –Stock Sale, with Asset Sale Tax Treatment

What is a 338 Election? How would I use it when I sell my business? In a typical acquisition (using an S-corporation as an example), the seller seeks to maximize capital gains, on which they pay a lower tax rate, and the buyer seeks to maximize the present value of tax deductions. While this may be desired, there may be a need to effect the transaction as a stock deal rather than an asset deal.

6 Areas of Focus for Troubled Companies

Most troubled companies share a common denominator: excessive debt and management indecisiveness. That doesn’t mean lack of desire to perform. It does, however, mean that there have been some fundamental issues, strategy mistakes or procrastination among senior management in the months or years leading up to that point. You could write several books on the lists of reasons that companies get into trouble and in a career of restructuring troubled companies, there are many stories to tell. In this article, we discuss 6 areas of focus for a troubled company: 1. Cash management 2. Profit and profitability 3. Controlling costs 4. Fixed Assets and Inventory 5. Accounts Receivable 6. Debt

The Best Buyer for your Business

When a business owner is asked who the most likely buyer is for their business, they will typically have a fairly good idea who the most likely candidates are, which normally fits one of the following profiles: i) a competitor who can’t access your market, client base, lacks certain proprietary differentiators or some other motivation; ii) a strategic buyer who would love to buy your technology, unique products, service, patents, intellectual capital, team, or maybe your reputation in the marketplace; or iii) the private equity group that has been courting you for years, or maybe even; iv) the Senior Manager in your Company who’s worked for you for 20 years and who, with the right financial backer, could buy, manage and grow the business.

How Much Should a Buyer Pay a Seller for Synergies of two Merged Businesses?

This is an interesting question and the answer has certainly changed over the years. Whereas synergies may have previously been credited entirely to the buyer’s benefit post closing, the trend has been for buyers to pay an increasing premium to sellers for some of the shared future synergies. In most strategic deals, there is now more…

Baby Boomers and Their Businesses – Implications for Mergers & Acquisitions in 2013 and Beyond.

The U.S. economy is at a critical intersection. Privately-held businesses have long been the driving force of the economy, and are now in a period of transition that has been building up for the last 50 years. Baby boomers own an unprecedented number of businesses and hold an unprecedented proportion of U.S. private wealth. Having propelled the booming U.S. economy since the early 1990s, baby boomers have now reached their peak in the consumer spending cycle.

Baby Boomers and Their Businesses. Implications for Mergers & Acquisitions in 2013 and Beyond.

November 30, 2012: Q3 2012 Baby Boomers and Their Businesses. Implications for Mergers and Acquisitions in 2013 and Beyond.

Stock Markets Volatile – Time to Sell My Business?

We’re just coming off the back of a month when the Dow Jones lost almost 10%. Should this mean anything to you if you were planning to sell your business? We should try to separate perception and reality; future expectations and historical performance and discuss how they intersect.
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