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Before Moving Forward With a Sale, Understand Tax Responsibilities

Experience business brokers recognize the complexity of selling a transportation business better than anyone. Many professional appraisers, brokers, accountants, and tax specialists have been working in the industry for many years and have learned to anticipate potential roadblocks which might arise during the selling process. One of the most common obstacles concerns taxes; oftentimes our clients who are selling a company don’t fully grasp the tax ramifications of a final sale.

Tackling tax issues early in the sales process is a great way to avoid complications down the line. The earlier a problem is addressed, the more likely a business broker will be able to help you stave off costly delays and fees later in the process. Many clients are overwhelmed by the byzantine tax hurdles they are made to jump through; tax specialists relieve that burden and allow them to focus on selling your transportation company in the quickest, most financially advantageous way possible. The best business brokerage firms can guide you through all potential tax obligations, be they federal, state, or local in nature.

Selling a business at the right time is one of the most important considerations when selling a transportation company, and tax planning will do much to determine when the timing is right to sell. Understanding both current and future tax rates can greatly increase your chances of successfully selling your business.

For instance, let’s say hypothetically that capital gains taxes are expected to substantially increase before your sale can realistically be finalized. Most brokers with enough experience in the field can foresee this type of situation and offer ways to increase the baseline value of your company in order to offset the new tax obligations. The structure of your business and its sale also has complex tax ramifications, seeing as how you and your consultant(s) will presumably be handling large volumes of stock and assets when completing transactions and transfers. By knowing everything your sale will entail, you can have a clearer picture of the options available for your company, bringing clarity and confidence to the decision making process.

When the proper steps aren’t taken to head off tax problems, many tax experts have seen sellers end up paying over 30% more in extra payments than they would have had they called a business brokerage firm for assistance with meeting their tax obligations.

The Tenney Group has been facilitating transactions of transportation businesses for over thirty-five years, specializing in business sales, mergers, acquisitions, and post-transaction services. We have experience dealing with a wide variety of companies in the ground transportation industry, including trucking, freight hauling, ambulance, school bus, and limousine businesses. Contact Spencer Tenney at the Tenney Group for expert assistance when buying or selling a transportation company.

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