Ownership decided they wanted to retire and that selling the business was the best way to accomplish this. But the business was evaluated and the report was extremely disappointing – market value was far less than anticipated. This is due to years of inhouse bookkeeping finding every possible way to reduce taxable income and ownership preventing their company from growing for fear of a larger tax bill. 

Saving money on taxes is often  a short term benefit with long term negative impacts.

MERGIX SOLUTION – Put a three year plan in place to sell business for top dollar.

To be successful in bringing a company to market there needs to be some years of performance gains reflected in the books – this is what tells the story of a successful company to would-be financiers and potential buyers.

MAJOR WIN –  P&L’s improved, and after 3 years the business was ready to market at a value high enough for the owners to retire, and move into the next phase of their lives. Narrow thinking and the constant quest for write-offs haunts many owners. But a clear understanding of your goals changes the entire strategy around HOW you pay taxes.