Around the Web: A Week in Summary

Around the Web: A Week in Summary

The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.

 

A recent article from The Business Journals entitled “When selling your business, should you sell your property too?” explores options that a business owner has when they own the property that their business is located on and are getting ready to sell that business.  It is important to consider the property as a separate asset from the business.

The business owner has several options:

  • Sell the business, keep the property, and lease the property to the new business owner or another business if they choose to relocate
  • Sell the business, keep the property, and lease the property to the new business owner with an option to purchase
  • Sell the business, keep the property, lease the property, and then sell the property as a leased investment
  • Sell the business and the property together

Click here to read the full article.

 

A recent article from Viking Mergers & Acquisitions entitled “Selling a Business: Capital Gains Tax” discusses important considerations related to the capital gains tax when selling your business. The capital gains tax has a significant impact on how much money you get to keep from the sale of your business, so it is essential to understand.

Capital gains are the profit gained from the sale of a capital asset, such as a business. When the business is sold, there is a tax on these capital gains.

Short-term capital gains tax is applicable to businesses owned for less than a year, and it is most often taxed as ordinary income based on your tax rate.

Long-term capital gains tax is applicable to businesses owned for more than a year, and this tax rate can be up to 15%.

Click here to read the full article.

 

A recent article from Forbes entitled “Don’t Miss These Essential Tips When Planning Your Business Exit Strategy” discusses why it is advantageous to plan for an eventual sale of your business, even if you don’t plan to, and why you should work to increase its value on the road to the sale. The greater the value, the greater the likely sale price.

The following elements create value in a business:

  • Strong future projected cash flow
  • Human capital
  • Customers
  • Strong supply chain
  • Strong financial management and a strategic plan for growth
  • Strong marketing plan

Click here to read the full article.