The purpose of these articles is to educate both buyers and sellers of the many different issues related to a business transfer. The subject matter includes things like the value of a business, the variables involved in a business transaction, financing and structure of a transaction, planning your exit strategy, etc.
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Thursday, 13 June 2013
Consider Your End Goals When Completing Your Tax Return
Minimizing income taxes - short term
strategy or long term mistake?
Many business owners and their accountants are absolutely fixated on minimizing
taxes by showing no income. But this can be misguided planning for trying
to get top dollar when selling the company.
Business owners need to
realize valuation is usually determined by a multiple of identifiable cash flow
and that banks make acquisition loans based on tax returns.
taxes can be a short term strategy that might not pay off at the end!