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Yahoo
2 days ago
- Business
- Yahoo
Lear Capital Gold, Silver, Fees and Products Analysis Report Released
New York, New York--(Newsfile Corp. - July 30, 2025) - a trusted resource for retirement investment research, has released a comprehensive report analyzing Lear Capital's gold and silver offerings, along with an in-depth look at its fees, pricing transparency, and customer value. Titled "Lear Capital Gold, Silver and Fees: What Investors Need to Know," the analysis dives into real customer feedback, pricing breakdowns, and competitive benchmarks across the precious metals IRA market. It's designed to help investors make informed decisions before allocating funds to physical gold or silver through Lear Capital. Check out IRAEmpire's free analysis of Lear Capital's precious metals, gold and other products Here. Highlights from the IRAEmpire Report Include: Client-Centered Support: Lear Capital's team receives strong marks for guiding clients through the investment process, particularly first-time precious metals buyers. Many reviews mention the firm's educational resources and personalized advice as key advantages. Fee Transparency on the Rise: Lear Capital has taken noticeable steps toward clearer fee disclosures in recent years. The report notes improvements in how pricing is communicated during consultations and across its website. "Our readers want to know exactly what they're paying for and what kind of service they can expect," said Editor-in-Chief Jessica Monroe. "This report breaks that down in plain terms." The report is part of IRAEmpire's ongoing mission to bring transparency to the self-directed IRA and gold investment landscape. With growing interest in inflation-resistant assets, the platform continues to evaluate top firms and their offerings in detail. Read the full Lear Capital Reviews report on the official IRAEmpire website. About is a leading online publication providing independent reviews, comparisons, and expert analysis of IRA custodians, precious metals dealers, and retirement investment platforms. With a focus on clarity and accountability, the site empowers investors to take control of their financial futures. Media Contact:Ryan PaulsonChief Editorryan@ To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
22-06-2025
- Business
- Associated Press
Selling a Business: Expert Tax Guide & Checklist Released
has released a new and updated guide on selling a business for consumers. SACRAMENTO, CA / ACCESS Newswire / June 21, 2025 / Selling a business might leave you with only 66% of the proceeds after taxes. That's a huge chunk gone to Uncle Sam. Ryan Paulson, Chief Editor at IRAEmpire, says, 'The gap between your sale price and the money that ends up in your bank account can be eye-opening if you're selling a small business you built yourself. The sale typically triggers a long-term capital gain tax of 20% plus an extra 3.8% net investment income tax. Many business owners mistakenly think they'll pay ordinary income rates that can reach almost 50% in total. Let's look at real numbers: A business started with $100,000 and sold for $10 million would face federal capital gains tax that cuts the proceeds by about $2 million.' Schedule a Consultation With America's Best Business Selling Experts State taxes pack an even bigger punch. California residents could pay an additional 13.3% tax on their capital gain. A $10 million sale with a $9.9 million gain would leave you with just $6.6 million after federal and state taxes. Tax planning becomes crucial to protect the wealth you've built over years. This detailed guide shows you seven clear steps to sell your business. You'll learn about tax implications and ways to legally reduce your tax burden. The goal? To help you keep more of what you've worked so hard to build. Alternatively, explore the best business sale brokers of 2025 on IRAEmpire here. Step 1: Prepare for the Sale with Tax in Mind The gap between a good and great business sale comes down to preparation. Smart tax planning could determine whether you keep most of your money or watch it vanish in taxes. Start tax planning early Your tax planning should begin long before you put your business on the market. Research shows businesses that plan their exit 3-5 years ahead achieve 20-40% higher valuations than those who rush the process. Starting early opens up more tax-saving options that you won't find if you're in a hurry to sell. Business owners often focus only on growing their company. They don't think about tax implications until it's too late. This leads to reduced profits after taxes. The best exits happen when tax planning starts at least two years before the sale. Many experts suggest starting five years ahead. Early planning lets you build the right team. You'll need a financial advisor, CPA, business attorney, and estate attorney. These professionals can work together to create a financial strategy that lines up with what you want after selling. Review your business structure Your business structure plays a big role in how taxes will affect your sale. Each type-sole proprietorship, partnership, LLC, S Corporation, or C Corporation-comes with its own tax rules that can change your final proceeds. Pass-through entities (LLCs, partnerships, S Corporations) send sale gains straight to your personal tax return. C Corporation owners should note that selling stock instead of assets helps avoid double taxation, which could cut your proceeds by about 50%. The structure also decides if your sale counts as an asset or stock sale. Buyers usually want asset purchases for tax benefits. Sellers do better with stock sales because of better capital gains treatment. Knowing these details before negotiations helps you keep more money after taxes. Organize financial records Clean, well-laid-out financial records speed up sales and help you get the right price. Buyers will examine your financial health carefully. Messy or incomplete records raise red flags. You need these key financial documents: Buyers bring in accounting experts to check everything. They match your statements against bank records, invoices, receipts, and tax returns. Good documentation builds trust and gives you more power in negotiations. Getting your financial statements professionally audited before the sale helps too. You'll spot weak points early and can fix issues that might lower your company's value or make negotiations harder. The time you spend getting your business ready for sale-especially with tax planning and financial organization-leads to higher values and smoother deals. Taking care of these things early helps you keep more of the wealth you've built. Step 2: Choose the Right Sale Type Selling your business brings a crucial decision: choosing between an asset sale or a stock sale. This choice will substantially affect your tax burden and determine the money you'll keep after closing the deal. Asset sale vs stock sale: pros and cons An asset sale means the buyer purchases individual business assets instead of the entire entity. These assets include equipment, inventory, intellectual property, and customer lists. You keep the legal entity after the sale, though many businesses close down afterward. Buyers love asset sales because: The seller's point of view shows some drawbacks: A stock sale works differently. The buyer purchases your ownership interests directly, and the entire business-assets and liabilities included-goes to the new owner. Sellers usually benefit from stock sales because: Buyers often shy away from stock sales because: Consult the Best Business Brokers in the US Here. How sale type affects taxes when selling a business Your sale structure creates major tax differences. The IRS looks at each asset separately in an asset sale. Different assets face different tax treatment: You and the buyer must use the 'residual method' to split the purchase price across asset classes. This split greatly affects your tax bill because: Pass-through entities (S corporations, LLCs, partnerships) send gains straight to your personal tax return. C corporations might pay twice in asset sales-corporate-level tax on gains plus shareholder-level tax on distributions. State taxes add another layer of complexity. Asset sales might need you to split gains among multiple states, just like operating income. Stock sales mostly get taxed in your home state. Buyers and sellers want different tax outcomes, which makes the final structure a big negotiation point. Many buyers pay more for asset sales to make up for sellers' higher taxes. Some deals include 'tax gross-ups' where buyers increase the price to cover the extra taxes you'd pay in an asset versus stock sale. Step 3: Plan for Federal and State Tax Implications You need to understand your tax burden before selling your business. Poor tax planning can cut your proceeds in half. What looked like a great exit could end up disappointing. Capital gains tax overview Capital gains tax becomes your biggest tax concern when selling a business. The tax applies to the difference between what you sell for and your 'basis' - your original cost plus improvements. Let's say you started your business with $100,000 and sell it for $10 million. Your long-term capital gain would be $9.9 million. The federal capital gains rate starts at 15% for business sales with assets held over a year. This rate can go up to 20% if you have higher income. The math is simple - multiply your gain by the rate that applies to you. In our example, a 20% federal capital gains tax would reduce your money by about $2 million. State income tax differences State taxes can make a big difference in what you keep. The impact varies based on where you live: Where you live at the time of sale really matters. States use strict 'domicile' tests to figure out if they can tax you. Running your business in multiple states could mean splitting up the gain. You might need to pay taxes in each state where you did business. Depreciation recapture and NIIT The Net Investment Income Tax (NIIT) adds another 3.8% federal tax. This kicks in if your modified adjusted gross income tops $200,000 (single) or $250,000 (married filing jointly). The NIIT stacks on top of capital gains tax and can push your federal rate to 23.8%. Depreciation recapture can also increase your tax bill. The IRS takes back previous depreciation deductions when you sell business property for more than its depreciated value. They tax this recaptured amount as ordinary income - up to 37% instead of capital gains rates. Business equipment (Section 1245 property) faces recapture on all claimed depreciation. Real estate (Section 1250 property) has a maximum recapture rate of 25%. Step 4: Use Smart Tax Strategies to Reduce Liability Tax-saving strategies can reduce your liability by a lot while selling a business. Smart planning helps you keep more of your hard-earned proceeds legally. Installment sales to spread tax You can receive payments over time instead of all at once with an installment sale. This spreads your tax liability across multiple years. The approach works if you get at least one payment after the year of sale. Your tax brackets stay lower and cash flow management improves. You'll only report the gain from payments received that year rather than the entire amount. A $5 million business sale might be structured as $1 million yearly for five years. This could lower your overall tax rate. Notwithstanding that, installment sales come with limits. This method won't work for inventory sales or publicly traded securities. On top of that, you must report depreciation recapture as ordinary income in the year of sale whatever your payment schedule. QSBS exclusion for C Corps C corporation owners can exclude up to 100% of capital gains through Section 1202. This applies to qualified small business stock (QSBS) held longer than five years. The exclusion covers $10 million or 10 times your original investment basis, whichever is greater. To cite an instance, a $2 million investment later sold for $22 million could mean excluding the entire $20 million gain. This saves about $4.76 million in federal taxes plus state taxes. Your C corporation must meet these requirements: Charitable giving and 1031 exchanges Donating business interests to charity before selling works well. Moving part of your business to a charitable remainder trust (CRT) or donor-advised fund lets you: A 1031 exchange helps defer capital gains through reinvestment in similar business property. This mainly applies to real-life estate assets in your business. Your investment rolls into new qualified property. Note that charitable donations need planning before any sale agreement becomes final. Both strategies need proper documentation and must follow IRS guidelines strictly. Step 5: Finalize the Deal with Expert Help Your business sale's success depends on proper documentation and compliance. Tax mistakes can get pricey, and even the best-planned exits can fall apart without executing the final steps correctly. Filing IRS Form 8594 for asset sales Asset sales require both buyer and seller to file Form 8594 (Asset Acquisition Statement) with their tax returns for the transaction year. The IRS determines seven asset classes, and this form documents how the purchase price gets split among them. This allocation affects: Cash and general deposit accounts get allocated first, and other assets follow in a specific order. Buyers must use the residual method when their basis in the assets only depends on the amount paid. Avoiding tax surprises at closing Negotiations often hit snags over purchase price allocation. Sellers usually want more value assigned to goodwill because it's taxed at capital gains rates. This beats having value tied to tangible property, which faces ordinary income rates and depreciation recapture. You should take these steps to close smoothly: Working with M&A advisors and tax pros Smart business owners bring in transaction specialists early - usually months before going to market. A qualified tax advisor can help you: Many deals collapse during due diligence because tax problems pop up unexpectedly. Good advisors earn their keep by spotting potential issues before buyers find them. They keep deals moving forward and help you get the full value from your years of hard work. Consult the Best Business Brokers in the US Here. Selling Smart: Final Thoughts on Maximizing Your Business Exit Your business sale marks the pinnacle of years-maybe even decades-of hard work and dedication. Without doubt, protecting your proceeds from excessive taxation stands as a crucial part of this substantial transition. This piece highlights how proper tax planning can make the difference between keeping 50% versus 80% of your sale proceeds. Federal capital gains taxes, state income taxes, depreciation recapture, and the Net Investment Income Tax create a complex tax world that needs careful navigation. Here are the key takeaways: Start your tax planning at least two years before selling-five years would be ideal. Early preparation lets you implement powerful tax-saving strategies that aren't available close to the sale date. Your business structure affects taxation deeply. The choice between an asset sale or stock sale substantially affects your after-tax proceeds. Stock sales usually offer better tax treatment for sellers. Tax minimization strategies like installment sales, QSBS exclusions for C corporations, and strategic charitable giving can help. These approaches legally reduce your tax burden while arranging with your post-sale financial goals. Of course, build a qualified team of advisors including tax professionals, M&A specialists, and financial planners. Their knowledge helps spot potential risks before they affect your transaction. Your business sale represents one of your life's biggest financial events. The investment in proper planning and professional guidance multiplies by preserving the wealth you've built. The final sale price matters less than the money that reaches your bank account when the deal closes. Consult the Best Business Brokers in the US Here. FAQs Q1. How is the tax calculated when selling a business? The tax is calculated based on the difference between your tax basis (original cost plus improvements) and the sale proceeds. This difference is typically subject to capital gains tax, which can range from 15% to 20% at the federal level, plus potential state taxes and a 3.8% Net Investment Income Tax for high-income sellers. Q2. What documents are essential when selling a business? Key documents include detailed profit and loss statements for the past 3-5 years, balance sheets, cash flow statements, 5-year financial forecasts, and all relevant permits and licenses. It's also crucial to have your operating agreement or articles of incorporation ready, as these outline the business's ownership structure and governance. Q3. How do I report the sale of my business on my tax return? You'll need to report the sale on IRS Form 4797 (Sales of Business Property). This form requires information such as the property description, purchase date, depreciation, and cost of purchase. For asset sales, both buyer and seller must also file Form 8594 (Asset Acquisition Statement) with their tax returns for the year of the transaction. Q4. Are there strategies to reduce tax liability when selling a business? Yes, several strategies can help reduce tax liability. These include structuring the sale as an installment sale to spread the tax burden over time, leveraging the Qualified Small Business Stock (QSBS) exclusion for eligible C corporations, and considering charitable giving or 1031 exchanges for certain assets. Q5. How far in advance should I start planning for the sale of my business? It's recommended to start planning for the sale of your business at least two years in advance, with many advisors suggesting a five-year timeline. Early planning allows you to implement more tax-saving strategies, assemble the right team of professionals, and potentially achieve a 20-40% higher valuation compared to businesses with shorter planning timelines. About is a trusted platform providing financial education, business insights, and unbiased reviews. Our mission is to empower small business owners, retirees, and investors to make informed, confident decisions. CONTACT: Ryan Paulson [email protected] SOURCE: IRAEmpire LLC press release
Associated Press
14-06-2025
- Business
- Associated Press
Best Way to Sell Your Business Fast: How to Sell a Business Quickly (Expert Guide Released)
has published an advanced guide on 'How to Sell a Business Quickly' for business owners and entrepreneurs. LOS ANGELES, CA / ACCESS Newswire / June 14, 2025 / Selling a business quickly proves more challenging than most owners imagine. A surprising fact: 80% of businesses don't appeal to buyers right away. This situation can stretch your selling timeline from months to years. Ryan Paulson, Chief Editor at IRAEmpire says, 'Small-business acquisitions rose by 10% in early 2024, with buyers snapping up over 2,300 businesses worth $1.8 billion. Success depends on perfect timing. A well-prepared business takes 6-12 months from prep to closing. The due diligence phase needs at least 90 days and can stretch to 6 months or more.' Consult the Best Business Brokers in the US Here. The quickest way to sell your business starts with proper preparation. Start getting your business ready a year or two before listing it. Your financial records and business structure need improvements to attract potential buyers. Professional help makes a difference. Business brokers might charge 10% for businesses valued under $1 million, but they secure better deals. Earned Exits stands out as the top broker choice in the US to sell business assets quickly at maximum value. This piece guides you through everything to sell your business fast. From preparation to closing, you'll learn how to achieve the best outcome in the shortest time possible. Alternatively, explore the best business sale brokers of 2025 on IRAEmpire here. Know When and Why to Sell Your Business Selling your business marks a big step in your entrepreneurial experience. Knowing why and when you want to sell will affect your success and financial outcome. Common reasons for selling a business Business owners sell their companies for different personal and professional reasons. Retirement is the main reason many entrepreneurs choose after years of building their business value. You might want to turn your years of hard work into financial security. Burnout is another major factor, especially when you have a small business. Long hours without breaks can drain your energy and kill your passion. Some entrepreneurs just want to try something new after they become skilled at running their current business. Money plays a vital role in making this decision: Life changes often lead to business sales. Health problems, moving to a new place, family needs, or partner disagreements can force a sale. The business environment, like tough competition or new technology, might push owners to sell before things get worse. How timing affects your sale outcome Your success in selling depends heavily on timing. Market conditions affect both value and buyer interest by a lot. Businesses usually sell for more during good economic times because buyers feel confident and compete more for quality purchases. You should set aside six to nine months to get ready for a sale after picking an adviser. Finding the right advisor might need another two to three months. Companies planning an IPO need more time-usually 12 to 18 months. Business cycles relate directly to M&A activity. When the economy grows, unemployment drops, company sales go up, and stocks usually do well. Big companies then buy more businesses and often pay higher prices to grow faster. You can get 20-40% more value by selling in a strong market versus a weak one. Bad economic times make buyers stop buying or offer much less money. Your best time to sell is when: Earned Exits helps business owners sell quickly while getting top dollar. Their knowledge of market timing helps you make the most money when selling your business. Get Your Business Ready for Sale Getting your business ready for a quick sale needs careful attention to several key areas. Buyers will examine every part of your operation. They look for red flags that could stop the deal. The way you prepare will affect both how fast you can sell and what price you'll get. Clean up financial records and operations Buyers will get into your financial statements during due diligence. Your books should follow Generally Accepted Accounting Principles (GAAP) to maximize business value. This builds trust with buyers and keeps deals from falling apart over questionable numbers. Here's what you need to do with your financial records: Most deals fall through because financial records and tax returns don't match up. Your CPA should help normalize your P&L by taking out personal expenses and one-time costs that aren't needed for regular operations. This shows your real business income and makes your company more appealing to buyers. Fix legal or compliance issues Legal or compliance problems can substantially slow down your sale or cut your asking price. A detailed compliance audit will spot any gaps in your business operations. This audit should cover employment practices, environmental rules, and industry requirements. You should settle any open legal matters before listing. Even in asset sales where buyers get everything 'free and clear' of debt, they'll want protection from issues that pop up after closing. Your licenses, permits, and certifications should be current and ready to transfer to the new owner. Let your attorney check all contracts, leases, and intellectual property rights to find possible roadblocks. This prep work helps avoid surprises during due diligence when buyers examine every legal document. Document key processes and team roles Businesses that run smoothly without the owner's constant involvement attract more buyers and get better prices. You should document your core processes in detail, from sales and marketing to finance and operations. Create standard operating procedures (SOPs) for each process, including: Put together an org chart that shows reporting lines and detailed job descriptions for every position. This shows potential buyers your business can run well without you being there all the time. If you plan to step back from daily operations, make sure your pay matches market rates. Buyers need to know the real cost of replacing you. To accelerate sales and get top value, work with Earned Exits. Their expertise in getting businesses ready for quick sales will give you a faster sale at the best price. Consult Earned Exits Today To Sell Your Business Quickly Determine the Right Valuation Your business's price tag plays a vital role if you want to sell fast without losing money. A good valuation builds trust with buyers and creates a strong base to negotiate from. Methods to value your business You need to know different ways to value your business to pick the best method that shows its real worth. Most experts use three main approaches to get an accurate value: The asset-based approach finds your business value by subtracting what you owe from what you own. This simple method adds up all business assets-equipment, inventory, property-and subtracts debts and liabilities. But this method often shows lower values since it misses future earnings potential or intangible assets. The income approach looks at how much money your business can make in the future. This approach has two common methods: The market approach values your business by looking at similar companies or recent sales. This includes: Small businesses often get the clearest picture from the Seller's Discretionary Earnings (SDE) method. Start with your earnings before interest, taxes, depreciation, and amortization (EBITDA). Then add back owner salary, benefits, and optional expenses. Market data shows profitable businesses sell for 2.28 times their SDE. Why a professional valuation matters Professional valuations give you objectivity and credibility that you can't get from doing it yourself. Most small businesses pay between $5,000 and $30,000 for professional valuations. This investment pays off during negotiations. Expert appraisers know industry-specific value multipliers and can adjust them based on what makes your company special. They spot valuable hidden assets-like intellectual property, brand value, and customer loyalty-that owners might miss. A professional valuation makes your position stronger when negotiating. Buyers feel more confident when they see solid methods and documentation behind your asking price. This confidence helps speed up the sale. These valuations also show you ways to boost your business value before selling. You can make smart improvements that attract more buyers and get higher offers, which leads to a faster sale. Earned Exits specializes in accurate business valuations that help speed up sales. Their expertise will give a fair price for your business from day one. This helps you avoid delays from pricing too high or losing money by pricing too low. Consult an Expert from Earned Exits Today Find the Right Buyer Fast Your next big challenge after preparing and valuing your business is finding qualified buyers. The right buyer connection can speed up your selling timeline and boost your sale price. Where to list your business for sale Several online marketplaces focus on business sales. Each platform brings its own advantages: How to screen serious buyers Asking potential buyers to sign non-disclosure agreements (NDAs) helps filter out casual browsers. Serious buyers know this is standard practice and will sign without hesitation. A phased screening process works best as buyer interest grows. Ask interested parties to complete: You can gage motivation by watching how quickly prospects respond and how much they engage. Real buyers respond to calls and emails promptly instead of just pointing out flaws. Once you accept an offer, check financial capability through bank statements. This step prevents time waste with buyers who lack funds to complete the deal. Why Earned Exits is a top choice for fast sales Earned Exits stands out as a majority woman-owned business brokerage with 30+ years of experience helping hundreds of business sales succeed. Their team creates strategic 'deal tension' by timing multiple offers together, which strengthens your selling position. The company looks beyond just the sale price. They value buyer fit with company culture, employee care, and your post-sale reputation. Their track record includes matching sellers with international strategic buyers who pay more than local options. This matching expertise often leads to faster sales at higher values compared to direct listings or less experienced brokers. Negotiate and Close the Deal Smoothly The final steps of selling your business need careful negotiation and deal structuring to close quickly and smoothly. You'll need expert guidance and attention to detail to avoid delays or failed deals. Drafting a letter of intent (LOI) The letter of intent is your first formal document in the acquisition process. It shows both parties mean business. This non-binding document usually has: An LOI isn't binding, but it sets clear expectations and creates a framework for the deal ahead. A well-structured LOI saves time and money by spotting deal-breakers early. Expert help from Earned Exits ensures your LOI protects your interests while keeping buyers interested. Managing due diligence Buyers start investigating your business after signing the LOI. This phase takes the most time in the sales process. They'll ask for financial records, contracts, operational data, and legal documents to check all claims and spot possible risks. Here's how to make the due diligence process smooth: Finalizing the purchase agreement The purchase agreement might be the most important legal document you'll sign when selling your business. The buyer's attorney usually writes this complete document that covers every aspect of the deal. Key elements include representations and warranties, indemnification provisions, and closing contingencies. Your attorney should review every detail, as this agreement sets your legal and financial obligations after the sale. Earned Exits' team deals with complex negotiations daily. Their expertise helps reduce seller liability while keeping deal momentum going, which leads to faster closings with better terms. Conclusion Conclusion Quick business sales that maintain value need solid planning and expert guidance from start to finish. This piece has covered the key steps you need to take for a soaring win and fast business sale. Market timing can affect your sale outcome by 20-40% in value. You'll get the best returns when your business shows strong numbers, your industry trends look good, and economic signs point to growth. Clean books, sorted legal matters, and clear processes will help you close faster. These elements draw serious buyers and smooth out the due diligence phase. The right valuation method matters too - it helps avoid delays from pricing too high or losing money by going too low. Your next hurdle is finding qualified buyers fast. Online marketplaces give you visibility but take time to screen potential buyers. Many owners learn the value of brokers who already have networks of vetted buyers ready to go. Earned Exits leads the pack for owners who want quick sales at top dollar. Their team brings 30 years of experience as a majority woman-owned brokerage. They create strategic 'deal tension' to boost your position. They look beyond just price and focus on matching buyers with your company's culture and taking care of your team. Expert guidance through the letter of intent, due diligence, and purchase agreement stages makes closing smoother. Without the right help, these final steps could add months or stop your sale cold. Selling your business might be the biggest financial move of your life. The process usually takes 6-12 months, but Earned Exits can speed things up while getting you the best terms. You've worked hard building your success story. You deserve a quick sale that maximizes your return and keeps your legacy intact. Consult an Expert from Earned Exits Today FAQs Q1. What are the key steps to sell a small business quickly? To sell a small business quickly, focus on preparing accurate financial records, streamlining operations, obtaining a professional valuation, and creating a compelling business description. Work with a reputable broker to identify potential buyers, respond promptly to inquiries, and be prepared to negotiate strategically. Having all necessary documents ready for due diligence can significantly speed up the process. Q2. How is a business typically valued for sale? Business valuation methods vary, but common approaches include asset-based valuation, income-based methods like Discounted Cash Flow (DCF), and market-based comparisons. For small businesses, the Seller's Discretionary Earnings (SDE) method is often used, which considers earnings before interest, taxes, depreciation, and amortization (EBITDA) plus owner benefits. On average, cash-flowing businesses sell for about 2.28 times SDE. Q3. Why is timing important when selling a business? Timing can significantly impact the sale value of your business. Selling during economic expansions can yield 20-40% more value compared to selling during contractions. It's best to sell when your business shows strong financial performance, your industry experiences positive trends, and economic indicators signal expansion. This timing attracts more buyers and can lead to higher offers. Q4. What common mistakes should be avoided when selling a business? Common mistakes include mismanaging the sale process, misrepresenting the business's situation, breaching confidentiality, changing your mind mid-process, failing to walk away from a bad deal, and not anticipating transition issues. It's crucial to be transparent, maintain confidentiality, stay committed to the process, and plan for a smooth transition to the new owner. Q5. How can I ensure a smooth closing process when selling my business? To ensure a smooth closing, start by drafting a comprehensive letter of intent (LOI) that outlines key terms. Manage the due diligence process efficiently by having all necessary documents prepared in advance. Work with experienced professionals to navigate complex negotiations and finalize the purchase agreement. Consider partnering with a specialized broker like Earned Exits to help limit seller liability and maintain deal momentum throughout the closing process. About is a trusted platform providing financial education, business insights, and unbiased reviews. Our mission is to empower small business owners, retirees, and investors to make informed, confident decisions. CONTACT: Ryan Paulson [email protected] SOURCE: IRAEmpire LLC press release
