Selling your business is a big decision, and the timing of this decision can make more of an impact on the outcome of your transaction than you might realize. So, is now a good time to sell your business? In our opinion, not yet.
Why Wait To Sell?
Whenever a new administration moves into the White House or the majority shifts in Congress (or both), you can expect a lot of change to be on the horizon. At Links Financial we cannot and do not attempt to predict what’s going on in Washington, but we do recommend waiting to sell your business until later this year at which point the dust will have likely settled and the outlook will be clearer.
Tax implications are one of the potential changes that would affect when it is best to sell your business. Changes to tax laws that have been suggested thus far would make it more beneficial to wait to sell until they were in effect – assuming all goes as planned. For example, you may pay less in taxes on the sale of your company depending on if and how tax laws are amended.
What You Should Be Doing Now
Still wondering when to sell your business, exactly? In the current environment, our opinion is that Q4 of this year could be a good time. If you want to be closing the sale of your business in Q4, though, there are several things that should be started now in order to be ready later. Make sure you have considered the following:
- Review your current lease agreements
- Update your books and records
- Prepare your financial documents
- Meet with your tax advisors to discuss the potential impact.
- Find a buyer
- Enlist the help of experienced advisors
When it comes to selling your business, advisors are important in every phase of the process. At Links Financial, our team of financial advisors can assist you with arranging the sale of your business in addition to providing aid and guidance with the steps listed above. For more information, contact us today.