What is the value of your business? Is it important to you?
Many business owners start a business to provide income for themselves and their families. As the years roll on, they may or not be as successful as they imagined at the game of business. If they do well, the income can be good but the tax cost can be horrendous.
The real gold in a business is its capital value to a buyer. A sale or merger is where the owner stands to make most of the money that takes them into another, more enjoyable life. This is so much more tax efficient than paying tax on income. Get it right and you can pay 10% tax on the arising gain rather than 40% or 45%.
The paradox of this truth is that the business owner must plan their own redundancy and build the skills of their team.
The business will also have to show a decent level of income for a future buyer. This means paying tax on income for the last few year.
The question is do you know the value of your business? The answer may be surprisingly low if you do nothing.
You can massively influence this value with some foresight and planning. Speak to me about how to obtain a valuation for your business and then crucially how to maximise it. Call 01438 811771, ask for Robert.
E: enquiries@robertaharris.co.uk T: 01438 811771