August 16, 2021

How A Business Went From $50 Million In Sales To Ceasing Operations And Still Got Sold.

Why working capital requirements can often be used strategically by buyers as they are designed to reduce the effective sales price of a business. Unaware sellers can be surprised when they end up with a lot less than they anticipated because they allowed the working capital to be manipulated either by how working capital was defined or the amount required.

A business went from $50M in sales to ceasing operations and was still sold for a considerable sum. When you know where the intrinsic value in a business is, the business can still be monetized, even as a non-operating entity.

A tool that every entrepreneur and their advisors should use as they evaluate offers to gain insights on what the net after tax proceeds are going to be after the sale.

Using multi-state tax arbitrage to reduce taxation on sale proceeds if you can do advanced tax planning. This is especially important if you live and operate in a high taxation state.

Roman Basi
Advanced Accounting
Lambertville, Michigan
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