Thinking About Selling Your Company Next Year? Prepare Now!
7 Steps to Higher Company Value:
Don’t Push Income Out to Next Year on Your P&L
Do Not Prepay Expenses
Have Year End Books Completed by January 15th
Do Not Buy Inventory until January 1st
Do Not Buy Equipment until January 1st
If Cash Accounting Make All Deposits Before Year End
If Accrual Accounting, Invoice All You Can
While these steps in reverse are typically done to minimize taxes, use these same strategies to increase the net income and thus value of your company. Most Banks, Buyers and Brokers value companies on a weighted formula. The heaviest weighted year is the most recent year end. By implementing these strategies you can increase your net income on paper, thus a multiple applied to increase the selling price. Always, always, consult your accountant and broker. Develop a plan and time frame. You might even be able to file taxes after the sale, mitigating your tax burden further.
If you are thinking of selling your company I would love to be of service. I have been selling companies across the US and accomplishing my clients goals, for over 25 years. Call me personally to discuss your goals. My personal number is 704-999-9728.
Frank R. Davidson MBA,MEA,CMI,SBA
Principal & Senior Business Analyst
Certified Medical Intermediary
Davidson Business Investments
Did you know you could live chat with a business broker 24/7?
Who doesn’t have a million questions about their companies?
Have questions? Frank Davidson is always available to help!
If now is the time to sell, Frank can help.
If you’re considering selling in the future but have questions that are holding you back, Frank can help.
Your financial investment answers are here!
Just visit www.GoDBI.com for live chat.
You have direct contact with an expert who can put your mind at ease.
Not only is it simple…
the best part…
1. When you drive around the block several times before parking and going to work.
2. When you look at the clock to see if it’s time to leave for the day.
3. You don’t want the telephone to ring.
4. You don’t want to talk to customers.
5. You feel that you are the only one working.
6. You don’t see where the business is headed.
7. You don’t feel that your employees are carrying their load.
8. You think that you’re too busy and life is passing you buy.
9. The enthusiasm is gone.
10. Running your own business just isn’t fun anymore.
Are you able to answer YES to any of these reasons twice in a week? Call me on my personal cell so we can discuss how I can help you 704-999-9737.
Frank Davidson and his team of agents have over 45 years of combined experience serving the most elite clients in Charlotte NC, the Southeast and all over the US.
With strategic acquisition search programs in place DBI creates deal flow higher than any in the industry by uncovering opportunities other firms never hear or see.
Have questions? Chat Live with Frank Davidson by visiting www.GoDBI.com
Outstanding Referral Benefits for Professionals Who Recommend Our Services!