Capital Gains Tax and its Impact on Selling a Business
By: Kevin Hirdes, CM&AA, Managing Partner
Email: khirdes@nuvescor.com
It is not uncommon for 75% or more of the total gain in the sale of a business to be considered capital gains. The sale of your business brings you income and, as a result, taxes. The impact of an increase in capital gains tax will likely have a significant impact on the net dollars you will receive from the sale of your business. It is highly anticipated that the capital gains tax rate will increase in January of 2011. Fortunately for business owners who are considering a sale of their company in 2010, given the average marketing cycle of 6 to 9 months to sell a company, it is quite probable a business owner can still take advantage of the favorable capital gains tax rates that are in existence today.
Although it is not certain where the capital gains tax rate will ultimately end up, it is nearly certain that the much talked about tax increase is likely. We would encourage you to check with your CPA concerning how an increase in the capital gains tax rate would affect the result of your proceeds in regard to the sale of your business. For 2010, many considering the sale of their business are still presented with an opportunity to take advantage of the low capital gains tax rates that are currently in effect.
If you have considered the potential sale of your business, now is an excellent time to contact NuVescor for a confidential consultation of how the sale of your business can be accomplished confidentially, while maximizing the value received for the business owner. NuVescor is contacted daily by many buyers from the Midwest and around the world, who are looking to invest in business acquisitions. NuVescor has closed several transactions already this year. There is considerable time left to still take advantage of the lower rates.
Headquartered in Grand Rapids Michigan, NuVescor is privileged to represent business owners and stockholders across North America and the around the globe. Founded on the core principles of Integrity, Confidentiality and Trust, NuVescor is passionately committed to Excellence in Mergers & Acquisitions. Contact us for a complimentary confidential valuation. We will share best strategies to help you accomplish your goals and objectives. For more information, please visit our website at www.nuvescor.com.
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