33_yachtMany business owners and their accountants are absolutely fixated on minimizing taxes by showing no income.  But this can be misguided planning for trying to get top dollar when selling the company.

Business owners need to realize that valuation is usually determined by a multiple of profits, or identifiable cash flow, and that banks make acquisition loans based on tax return results.

Reducing taxes can be a good short term strategy, but it might not pay off at the end!

Michael MarksMichael Marks, creator of Toons ‘n Tips, is a Certified Business Intermediary (CBI) and has over thirty-six years of business experience and ownership. He is a licensed real estate broker in the state of Colorado and has been selling businesses for over eighteen years. Michael has taken up cartooning as a hobby in recent years and has found that by using those skills, along with his extensive business experience, he has been able to create the Toons ‘n Tips drip marketing service for clients all over the country. Find out more about Michael at www.toonsntips.com.