Business owners in North Carolina and elsewhere may not want to hold their companies for much longer. A change in economic conditions could significantly impact an owner’s ability to get top dollar for his or her company. To begin the sales process, it is a good idea to perform a valuation and create a reasonable price range for the company. This may be done by looking at recent sales and other relevant information.
The next step is to evaluate how taxes will impact the sale. It may be a good idea to consult with both tax and estate planning attorneys to create the most efficient structure for the sale that provides tax efficiency to the buyer as well. To get the most for the company, audited financial statements should be made available to buyers.
One of the most important metrics may be the adjusted earnings before interest, taxes and depreciation (EBITDA). This is generally what buyers look at when determining the true value of a business. Finally, business owners should surround themselves with the right people to close the sale in a timely manner while getting maximum value. In addition to a corporate attorney, it may be a good idea to have a transaction advisor help facilitate the sale.
There may be many variables to consider when completing business transactions. It may take a team of attorneys and other advisors to complete the deal in a timely and proper manner. Doing so may allow a business owner to get proper value for the company as well as avoid paying too much in taxes. It also may make it possible to create a realistic valuation that may result in many buyers expressing interest.