Timothy M. Foster
Build a Better Business, not just a Bigger Business
Updated: Nov 9, 2020
Simply stated, the value you ultimately receive from the sale of your business is what it’s worth to a buyer – or at least what they think they can get it for. For an informed business owner, a well devised exit strategy, properly implemented as far in advance of the exit from their business, will determine how much money they ultimately put in their pocket as they transition into their next business venture or as they downshift into retirement. And please don’t underestimate how strategic tax planning incorporated each and every year and at the time of the sale of your business, will allow you to utilize your business to maximize your personal wealth-building ability.
You have the challenge of finding the right exit planning team to enable you, the business owner, see the sale of your business through the eyes of the buyer. In our decades of experience in working with privately held businesses, we understand the challenge of assisting an owner in seeing and understanding a third party’s perception of value of the business. As a business owner, you have been so focused on business operations, growing the business, paying taxes, handling employee issues, and everything else that has enabled you to keep the doors open and grow the business, you missed strategic planning opportunities to incorporate changes that will ultimately increase the potential market value of your business.
Think about these questions:
· What’s your business worth without YOU in it?
· How can you ensure YOUR business will be valued at its full potential value?
· How can you make YOUR business MORE attractive to buyers, investors, and their advisors?
· How can you ensure that after selling expenses and taxes you end up with the maximum amount of money in your pocket?
Buyers and their advisors are searching for undervalued and under-performing businesses. The buyer wants to buy low, bring in the expertise to increase the value, and then, perhaps, sell “YOUR” business for its full potential value. THEY WIN – YOU LOSE! WHY? Why can’t you get the help to strategically increase your company’s value AND you sell the business for its full potential value. YOU WIN!
Do you and your key employees have a clear vision of the company’s goals and values? Can this be effectively communicated to perspective buyers? To receive full value, buyers must see accurate financial statements, strategic tax planning, up-to-date business systems and processes, annual budgeting process, effective marketing and specific metrics for running a profitable business.
How is your business performing compared to other companies in the same industry? How do your material costs, labor costs, overhead, gross margins, profits, and taxes compare to companies in the same industry? If you don’t know, the buyer will. You can increase YOUR company’s market value by proactively optimizing these numbers.
CASH FLOW AND TAXES
Have you maximized YOUR company’s cash flow AND simultaneously minimized taxes? Too many business owners, advisors, CPAs, and pundits mistakenly believe it is one or the other. For you, this is unfortunate and ill-advised because this reduces YOUR company’s market value. Think about it, the BIG publicly traded companies to maintain shareholder value do both – maximize cash flow AND minimize taxes! Why can’t you?
Who will address these issues? – You or the next owner? Why not address this before you exit so YOU realize the optimal amount on YOUR investment?
We can Help, Call me with your questions and thoughts. We’re happy to talk to you about our experiences and confidentially discuss what opportunities might be available to you. Talk to an experienced expert – not a salesperson!
Call us for a confidential consultation.
Timothy Foster, JD, MS Taxation
3Pi Group, LLC
3PiGroup, LLC and Plan My Business Exit, LLC are professional services firms dedicated to providing superior individualized and custom service to individuals and their businesses in the areas of sales enhancement, asset protection, tax planning, exit strategies, and wealth building. Simply put – we want to educate you on all relevant opportunities to put more dollars into your pocket, your business and your future.
We focus on leading edge, sophisticated, and safe business strategies that will help business owners structure, operate and maintain their business to take advantage of business and tax laws rather than being encumbered by them. We partner with the business, the accountant, and the attorney to ensure the business owners are capturing all available benefits that align with their business and personal goals.
Call Us Toll Free: (888) 938-2975 Email: Tim@3PiGroup.com