While some people start a business with the intention of
running it indefinitely and potentially even passing the torch to children
years down the road, others may eagerly accept a buyout offer. A buyout provides
you with the chance to get a lump sum of cash for your venture and to move on
to a new chapter in life. This cash may be used to retire, to open another
business or to accomplish many other goals. However, before you accept a buyout
offer, consider reaching out to a few experts for insight and guidance.
The first professional to reach out to is an accountant. A
buyout will have huge implications on your business tax liability and on your
personal taxes. Furthermore, it may impact your taxes for the next few years or
more if your income bracket changes dramatically. Before you can analyze the
financial gain that you may enjoy from the buyout, you must understand the full
tax implications. Tax liability should be taken into account to determine the
net profit that you may enjoy.
A Business Analyst
The last thing that you may want is to let go of your
business for much less money than it actually may be worth. There are many
aspects of a business that must be analyzed, such as current inventory, real
estate owned, intellectual property and more. A business analyst can review the
offer as well as the business to determine if the offer is reasonable. This
information may be used to help you negotiate a better deal in some cases.
A Corporate Lawyer
Before you sign a buyout agreement and give up control of
your business, a corporate lawyer should
carefully review the contract. This contract is legally binding, so you must
understand all of its conditions and nuances. A corporate lawyer may be a
skilled negotiator, and he or she may assist you in identifying better terms
and negotiating on your behalf.
When you are initially presented with a buyout offer, you
understandably may feel flattered and even excited about the opportunity in
front of you. However, you must carefully analyze the offer from many
perspectives before you can determine with certainty if accepting the buyout
offer is in your best interest. In addition to consulting with these
professionals, you must determine if you have a strong desire to continue
running the business yourself. Even if you receive an amazing offer, the time
may not be right for you personally to walk away from your business.