We work with clients all over the U.S. and inevitably hear comments like: “My five-location group generates about $12,000,000 in revenue. I’d like to build it up over the next five years and sell it for $50,000,000.”
OK…if you say so.
Do you want to borrow $49,000,000 to make that happen? I kinda doubt it.
What do you care more about: the amount of the sale or the amount you put in your bank account? If your answer is the latter, then you need to pay more attention to the amount of debt you take on and the impact that the tax rate will play because both of those will be paid off before the sale proceeds are deposited into your account.