The market is hot, buyers aren’t skittish, interest rates are low, and your business is really doing well. According to most business appraisal experts, this hypothetical moment would be the perfect time to sell your business.
But not so fast.
There are often overlooked aspects of a business that can significantly lower its value when the time comes to sell. These six risk characteristics can actually hinder your ability to realize the maximum value of your business.
When the topic of employer-sponsored retirement plans comes up, our minds immediately think “401(k).” However, as we pointed out in our post, What is an ESOP and Why Should You Care?, a well-managed ESOP could be a valuable option for you and your company—certainly one worth investigating.
Our goal is for you to walk away better informed and confidently prepared to provide a great retirement plan for the people who make your business successful.
An employee stock ownership plan (ESOP) could be a great option for your employees and company leadership. An ESOP is a retirement plan that vests your employees in the business and gives them a compelling reason to care about how the company is doing. When the company does well, they do well. For owners wishing to sell their business, it can provide an exit strategy while maintaining continuity within the business.
Is it something you could consider? Keep reading to learn more.
Due to the lower corporate tax rates—thanks to new tax laws passed last year—C corporations might be the new popular kid in school. If you own or run an S corporation, it might be worth looking into converting to a C corporation—but make sure to consider all the details.
Happy Holidays and Happy New Year from all of us at Southard Financial!
Southard Financial is so grateful to have clients like you. We appreciate your trust in us to provide quality business valuation and advisory services. Here’s wishing you joy and laughter during the holiday season, a Happy New Year, and a prosperous 2018!