Around the Web: A Week in Summary
A recent article from Divestopedia entitled “Choosing between a Financial and Strategic Buyer” provides an overview of the difference between financial and strategic buyers, how to present to each and the effects of either sale.
Organized neatly into an easy to read chart, the article covers topics such as ‘how to position your company’, ‘valuation and proceeds’ and ‘risk and leverage’. This chart is designed to provide you, the seller, with the information needed to choose between a strategic and a financial buyer.
A recent blog post from Transworld Business Advisors entitled “5 Signs it’s Time to Sell Your Business” discusses emotions and circumstances that could be pointing you towards a big decision.
Choosing to sell your business is not one that is made easily, but it’s important to accept that it’s not a sign of failure. Selling your business can open you up for new opportunities, revamp your creativity and passion, and change your current state of being as well as your business’s for the better. Therefore if you are:
- Feeling stressed out and anxious all the time
- Feeling like you have outgrown your business or it has outgrown you
- Aware of a loss of market favor
- In need of more liquid assets
- Presented with new opportunities that you are more excited or passionate about
Then it may be time to consider selling your business.
A recent article from TheMiddleMarket.com entitled “Opinion Tax Reform: How Buyers and Sellers Can Benefit” explains the new tax laws regarding bonus depreciation. Previously, bonus depreciation allowed taxpayers buying certain new assets to expense 50% of the purchase price in the year of acquisition. Originally, real estate assets were excluded from this rule and only the original buyer of an asset was eligible for the tax deduction.
As of September 27, 2017, qualified property that is purchased after this date and placed into service on or before December 31, 2022, will be eligible for 100% bonus depreciation and the rule is applicable to all purchasers. This new change in tax law provides exciting benefits for both buyers and sellers going forward.