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Is NOW the best time in history to buy or sell a company?

Between now any the end of the year may be a golden opportunity to buy or sell a company. Why?

1) Congress has enacted extremely low capital gains tax rates on small businesses purchased this year. Check the structure with your CPA, but here are the details:

http://www.taxpolicycenter.org/taxtopics/2010_budget_capitalgains.cfm

Buying a company this year may save the buyer lots of money!

2) The party in power is going to be thrown out of Congress in November. Expect them to burn the place down as they leave, letting the Bush tax cuts expire, and raising cap gains tax rate up to at least 20% (possibly up to 39.6%), in their lame duck session before January. Selling your company this year avoids that coming tax increase (again, check the structure of your deal with your CPA).

3) Further to part 2), the lame duck session will raise marginal rates, up to 39.6%. The net income you, as a business owner will make next year will go down. If you are thinking of selling, get

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Answers (7)
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Robert K. Gresham LLC
Attorney
GA

For those contemplating selling a business, if one's company is not already for sale, in late September, expecting to get the company to market, find a qualified buyer, and a sale closed by the end of 2010 is a longshot at best. That doesn't mean don't try, but just be aware that selling a business usually takes longer than three months. It is entirely possible that certain stimulus programs may be extended, just don't bank on it in making operational decisions bearing on sale of the company.

On the other hand, for a liquid buyer, agree that this may represent an excellent time to buy and negotiate "splitting the difference" in tax benefits with the seller.

Sep 22, 2010
Buy-a- Company

And now we have tax cuts from Washington DC to help small businesses grow.

Don't miss this opportunity!

Sep 22, 2010
Buy-a- Company

30 year home mortgage rates released today: 4.32% That is an incredible opportunity to borrow! Commercial and home equity rates are always slightly higher, but still the best rates in our lifetimes. If you are thinking of buying a business, time is running out. You will want to close in the next 90 days, so get started now. Do some DD; make some offers!

Sep 2, 2010
Buy-a- Company

And, interest raters are at an all-time low. Sometime in 2011, rates will begin their ascent, and this opportunity will be lost.

Great time to buy a company. Great time to sell a company.

Aug 31, 2010
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Biz2Credit LLC
New York County, NY

Good time to buy a business now. Biz2Credit (www.biz2credit.com) helps a large no. of business acquisition deals. Values are depressed right now and funding is cheap. If you buy a business right now and improve it over next 2 years. you will reap a big benefit.

Aug 31, 2010
Buy-a- Company

After I posted this, I saw this video. You don't have to watch, but one of the experts said that if you're thinking of selling your company, do it before the end of the year, as taxes are going up:

http://www.totalmerrill.com/totalmerrill/pages/webcast_tax_0710_tm.aspx

Aug 30, 2010
Buy-a- Company

Further to part 3), Any sales proceeds that are taxed at the marginal income tax rate (corporations, for example, don't get a cap gains rate), expect to send the government more tax dollars if you sell your company after this year.

4) 2009 and the start of 2010 have been slow for most businesses. A buyer acting now can capitalize on the lower cash flow of recent years, and magnify their returns as the economy recovers.

Great time to buy! Great time to sell!

Get busy now, because it may take 3-4 months to close a deal, and that may be too late.

Aug 30, 2010

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