Tax Expert Reveals Three Business Sale Secrets

Complimentary Book Download Available At Amazon On Select Dates

WEBWIRE – Monday, August 31, 2015

[Business owners] wait far too long before starting tax planning for the sale itself.

San Francisco, California, USA - Typically, business owners -- from old-line companies to tech start-ups -- have the sole focus of generating enterprise value. Then, about two to six months prior to the close of the sale of their firms, they realize that a rather large tax liability is waiting for them.

An informal survey conducted at the Business Enterprise Institute’s recent annual conference shows that tax planning for the sale of a business is often a blind spot for owners. The Institute is the sanctioning organization for the Certified Exit Planning (CExP) credential. According to one conference attendee, “It typically requires three to five years to properly prepare a company for sale. During that time, many business owners focus on best practices for marketing, operations, and finances. But, all too often, they wait far too long before starting tax planning for the sale itself.”

Forbes online columnist Todd C. Ganos finds, “Each business owner arrives at that unfortunate position via a different path. Owners of long-profitable companies are all too aware of taxes. But, the sale of their firms are ‘sometime in the future’ and they will do tax planning at ‘sometime in the future.’ Then, the offer they can’t refuse unexpectedly comes in and they haven’t put tax plans in place.”

On the other hand, Ganos notes, “The revenues and profits of successful start-ups often follow a ‘hockey stick’ pattern. That is, a long period of no earnings followed by a rapid rise. It is only after the rapid rise, often just prior to the company’s sale, that the founders and investors think about the tax consequences of an exit. However, depending on specific circumstances, a business owner might reduce the effective income tax on their gain by 30 to 75 percent with proper planning.”

Ganos has released a book on Amazon, “The 3 Tax Secrets You Need To Know About When Selling Your Business.” http://www.amazon.com/dp/B014HHBDZM The book will be available for free download on September 15th and September 30th. Amazon Prime and Kindle Unlimited members may access the book for free at any time. He encourages business owners, exit planners, and other advisors to take advantage of the offer.

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