- July 28, 2021
- Posted by: Stratford Team
- Category: Business
With the worst of the COVID-19 pandemic (hopefully) behind us, three positive signals appear to make this a great time for business owners to consider selling at least a stake in their companies: Abundant equity and low-cost debt financing, attractive valuations for private businesses, and the prospect of higher tax rates. They make a disposal, especially a tax-advantaged sale to an employee stock ownership plan, look appealing.
But wait a minute. Despite the alignment of tantalizing factors, this may not yet be the best time for you to sell. There’s more to the decision than just the numbers. We know more than a few former business owners with remorse. Many simply found their post-sale expectations about their business and/or their personal situation didn’t pan out. Plus, substantial unmet personal goals could have been addressed by sound wealth and tax planning.
What I have determined in my years of advising family businesses and private…
