Advice on Niche Market Exit Planning
Selling a Tax Planning Service
Don't believe anyone who tells you it's easy to sell a tax planning service. A lot of things need to happen before you can successfully exit your business. But with a few tips, you can keep your shirt and your sanity in the sale of your business.
Dire economic forecasts have forced many tax planning service sellers into hibernation. Instead of listing their companies now, they're hanging back until they see signs of an economic recovery.
Despite the conventional wisdom, we believe current economic conditions are right for selling a tax planning service. Here's how to do it . . .
When Is the Right Time to Sell?
When is it the right time to sell your tax planning service? If you're asking the question, now may be the time to put your business on the market. Some experts are telling tax planning service sellers to put their plans on hold until the economy fully rebounds. We aren't nearly as pessimistic about the tax planning service marketplace. The inventory of what we consider to be quality tax planning services is actually low right now and there is room for the right sellers to realize substantial gains with investment-conscious buyers.
Why Confidentiality Matters
Highly publicized tax planning service sales are risky tax planning servicesales. A low-key selling strategy is a low risk activity because you can control who does (and doesn't) know that your business is on the market. Eventually, word will leak out. When that happens, it can damage your standing with customers and vendors. Although it can be difficult, it's important to strike a balance between confidentiality and sale promotion. Brokers and consultants can mitigate the risk by implementing confidential sale techniques.
Hiring an Attorney
It pays to invest in first-rate legal counsel when you sell a tax planning service. A good lawyer serves a variety of functions during the process. In addition to reviewing the letter of intent, sales contract, and other documents, your attorney should be capable of advising you about due diligence and the tax consequences of the sale. We recommend hiring an attorney early in the process to gain insights about the legal consequences of various sale outcomes.
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