Business owners burn up their DNA faster than everyone else
John Lindsay, FLMI, MBA
I work with business owners to mitigate the destructive forces of taxes and undervaluation from private buyers; by using my R3 methodology. This ensures a handsome exit: at least 10 times net earnings guaranteed.
Savvy business owners know they can’t keep going at their everyday pace forever.
Selling shares is an option but once the low offers are received, they quickly get annoyed and just keep running their operations.
So why do brokers offer such low values for shares?
Worse yet, why do most offers come with “terms” meaning minimal cash up front, controls over cash flow and operations and an onerous time frame of five years?
The seething resentment I have heard from shareholders who did a deal with private equity buyers is not something you ever want to hear.
None of this makes sense to business owners who are:
- the backbone of the economy,
- pay more taxes than they should,
- started with nothing and don’t understand why buyers don’t see the value, plain to see from their perspective.
And what about Capital Gains taxes levied by the tax department on a disposition of shares?? Very discouraging.
Time itself is worth a lot in the exit process. If you would like to find out why offers are so low and more about pre-approved tax work arounds, contact me at a time of your convenience for a short Discovery call. Click here> Calendly - John Lindsay