The success of your trucking business sale isn’t limited to what happens at the closing table. Decisions made before and after your company is purchased will impact the amount of money you take away from the deal. Speaking with your wealth advisor beforehand can minimize unpleasant financial surprises and help maximize returns.
1. Be Prepared
Imagine the disappointment of making big plans for retirement, only to learn that an estate or capital gains tax will eat into the income you budgeted to enjoy your freedom. It’s an all too common occurrence when putting trucking companies for sale, but one that can be prevented with the aid of a financial advisor. Whether you want to leave the market for good, invest in a new business, or start a consulting firm, advance exit planning will provide you with more control during and after your business sale.
2. Know Your Options
Speaking of preparedness, laying out your options ahead of time can help you develop a strong strategy to protect your wealth. If you plan to retire, how much do you need to live on? If you and your financial advisor determine you will require $1.5 million – and it’s estimated that you will receive just $1 million from a sale – you’ve got to bridge the gap somehow. Maybe that means making value-enhancing reinvestments in your company before putting it on the market. Maybe it means creating a trust or other type of tax shelter with the assistance of your advisor. Maybe it means readjusting your plans for after you exit the market. Whatever you decide, understanding your options with the guidance of a professional will help you make the most of your sale proceeds while limiting exposure to taxes.
3. Shop Around
Second opinions aren’t just for doctors. Different wealth advisors may take different approaches. Talking to several financial advisors will leave you better informed, provide you with multiple strategy options, and help you decide which advisor may be best for the job.
As a trucking business owner, you’re good at running a trucking business – not necessarily at managing the complicated combination of negotiating a sale, interpreting tax law, and creating an investment portfolio. A strong team of professions such as your wealth advisor, attorney, and transportation industry broker will work by your side to ensure that you receive, and are able to keep, a fair price your business.