SPRING 2012

THE DISTRIBUTOR’S LINK 203
THREE GOOD REASONS TO SELL YOUR BUSINESS THIS YEAR continued from page 202
3) Economic Conditions
The past 5 years have been a historically rough
ride for the United States economy. In early 2007,
the economy and real estate market were in
exceptionally good condition. Housing was, for the
most part, still in a boom; employment was
expanding, and the values on most
assets were well valued. Since
then, we have seen an
unprecedented fall in housing
and real estate,
unemployment was briefly
above 10%, and gas prices
have been elevated. Early in
2012, the economy is showing signs
of continued recovery. As of Friday,
January 6, 2012 the unemployment rate fell to
8.5% and 200,000 jobs were created in December.
It is without doubt the economic situation has come
a long way. Along with the better economy,
increased opportunities to sell exist as people;
overall, have more money and more credit to work
with.
Conclusion
Now that President Obama faces reelection, the tax
law that gives rise to the low tax rates, in all likelihood
will be allowed to lapse. During his first term, the
Administration and Congress extended the previous tax
cuts favoring taxpayers, both businesses
and individuals alike. Being that
Anyone planning
to sell a business should
do so now as long as taxes,
finances, and the
economy are factors in
the decision
process.
congress and the government
desire some change in the tax
code, it is inevitable the tax
code will be changed during
the next few years. Many of
the current tax changes expire
at the end of the year. Then,
what happens is potentially
anyone’s guess. From a tax,
financial, and economic perspective, now is a
great time to sell your business if you are thinking about
retiring. The tax rates are at low levels, interest rates
have started to increase and the economy is on the
upswing. Anyone planning to sell a business should do
so now as long as taxes, finances, and the economy are
factors in the decision process.