3 Things You Need to Know Before Selling a Business
Jun 30, 2023Selling your business is an exciting time for most business owners. That said, often times business owners have never even considered that their business was sellable so when an offer comes through, they are completely unprepared and unsure how to proceed.
I will be discussing the three main things that I think you should be aware of as a business owner when engaging in negotiations to sell your business. You don’t want to be caught in a situation where the money is clouding your judgment. Use these tips to make sure that you are prepared.
The key takeaways from this episode are:
1. Have an exit strategy: It's important for business owners to have an exit strategy in place, even if selling their business isn't something they've considered. Being prepared will help navigate the process more effectively.
2. Understand the terms of the agreement: When selling your business, pay close attention to the terms of the agreement. This includes factors like payment structure, non-compete clauses, and any contingencies that may affect the deal.
3. Consider depreciation recapture and basis: It's crucial to understand the tax implications of selling your business, particularly regarding depreciation recapture and your basis. Seek professional advice to ensure you have a clear understanding of these financial aspects.
What you'll hear in this episode:
[0:50] Do you have an exit strategy for your business?
[1:55] The #1 thing to be ready for when selling your business: terms of the agreement.
[5:03] The #2 thing to be ready for when selling your business: depreciation recapture.
[11:22] The #2 thing to be ready for when selling your business: understanding your basis.
Related episodes:
Questions to Ask Yourself as a CEO
Why You Want to Build a Sellable Business
Get Back In The Driver’s Seat Of Your Business Finances
Resources:
Tactical Resources:
5-Day Financial Mindset Refresh: https://www.keepwhatyouearn.com/refresh
Create a Custom Podcast Playlist: https://quiz.tryinteract.com/#/6303d4c525b1e80018d47cfa
Grow Cash Flow for Your Business: https://www.keepwhatyouearn.com/endless-cash
Tax Deduction Guide: https://www.keepwhatyouearn.com/tax-deduction-guide
CFO Power Session: Text POWER to 860-609-6374
See how much you can save with an S Corp: https://www.keepwhatyouearn.com/keep-what-you-earn-s-corp-calculator
Additional Resources & Connect with Shannon:
Find everything you need at https://www.keepwhatyouearn.com
Questions about this episode? Text me! https://my.community.com/shannonweinsteincpa
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
