Three Deadly Weapons That Will Wreck the Sale of Your Business
receive half of what you should get.
1. Not Understanding the True Value of Your Business.
Albert wants to sell his business that has a ten-year track record. The business provides Albert an income of 0,000 per year in the retail area. Albert has done his own valuation of what he thinks the business should sell for and wants a price of ,500,000 for the business. That price is a factor of 10 times the net income. Unfortunately, in the retail sector of Albert’s business, the going rate is a multiple of three times the net income or 0,000.
Because of his unrealistic price, Albert will not be able to sell his business.
2. Not Understanding How The Sales Proceeds Will Be Taxed When Received.
Janet owns a business in a corporation. The sale is proposed to her as a sale of assets and no assumption of liabilities.