Why sell or why buy now?
The best time to sell or to buy is when things are going well.
The toughest thing for business owners to do is to sell when things are going well. Think of the professional athletes that have quit while they were on top and think of those that have stayed in the game too long.
Buyers also want a company that has a solid track record. Yes, there are buyers that are interested in companies that have problems, but they want a discount for their future efforts to right the ship.
The new 2018 Tax Reform Act has many favorable changes for the small to medium size privately held business. One of those changes is a significant reduction in the tax rate for “C” corporations. There may be other possible advantages for a change to a “C” corporation in the form of deductions. These changes may prompt business entities now IRS classified as “pass through” (LLC or Sub S) entities to consider changing to a “C” corporation.
If you are considering the possible sale or transfer of the ownership of your closely held or solely owned business within the next 5 years, you should consult with your financial and legal advisers regarding the impact that conversion from a “pass through” (LLC or Sub S) to a “C” entity may have regarding the future valuation of your company and the restrictions on changing back from a “C” entity to a “pass through” (LLC or Sub S) entity to reverse those effects .