Selling your business can have a great impact on the financial well-being of your personal household. When determining whether or not to sell, business owners need to first evaluate whether or not their family can afford to sell. This analysis can be a difficult, and the correct answer can vary widely depending on your facts and circumstances. The team of attorneys at Kelleher & Buckley, LLC have the experience and knowledge to help you. The key is asking the right questions. A few of those questions are as follows:
- Will the expected net proceeds from the sale produce enough after-tax income to maintain your personal lifestyle? In today’s low interest rate and record stock market environment, will placing the sales proceeds in the market, bonds, real estate and other investments produce enough income? How much market risk will you need to take to attain the necessary income? Are there other choices?
- How will your after-sale personal cash flow be effected when you are no longer able to deduct certain business expenses (i.e., auto, phone and entertainment)?
- What are the actual expected net sale proceeds (after broker, and professional fees and taxes)? How is that amount calculated?
- What is your business worth? Have you considered working with your attorney to find an independent business valuation advisor to help determine the (i) value and (ii) steps you need to take to improve the value?
- How long does the sale process take? What are the steps in the sales process?
- Does it make sense for you to hire a business broker or investment banker? If so, who is the best fit for your situation?
Kelleher & Buckley, LLC has the resources to help you. For more information, please contact Andrew Kelleher, David Buckley or one of the other 25 attorneys at 847-382-9130.