You've heard all of the stories about industry colleagues and fellow dentists making millions selling their businesses. Is your time next? Are we at the high-water mark for business valuation?
We have had the honor of speaking at many conferences this year and have fielded too many questions to count. Having said that, one particular question seems to come up with great frequency among those who own group practices:
“What’s the difference if I’m an S, C or LLC as it relates to the tax impact of selling my business?”
Well, we’ve also closed several deals recently (and have several others in the works) where the corporate election will have a major tax impact on the outcome of the deal. There are structural considerations of the transaction that can offset some – not all – of the tax impact, but make no mistake – corporate entity election swings major dollars at the closing table.
All of those years. All of that effort. How many sleepless nights? Personal guarantor on each and every loan with the bank. Recruiting all of those associates and leading your team to a point of stability. Your business has finally arrived at an admirable level of success – not to mention profitability.
And then the phone rings.
On the other end of the line is a guy you’ve never met who seemingly knows everything about your business…and he wants to buy it! What an incredible justification for all of your hard work!
So, what are you going to do?
“I have a memory like an elephant. In fact, elephants consult me.” ~Noel Coward
We have had the honor of speaking at many conferences this year and have fielded too many questions to count. Having said that, one particular question seems to come up with great frequency among those who own one to three or four offices: “What’s the real difference in a group practice versus a DSO, and when does it make sense to form an actual DSO?”