Succession Planning A high case count year in the books with a continued upward trend is good for your value Selling when you’ve had an increase in call volume shows value for your business when you are at the table! Last year, and likely 2021, are high case count years that may taper off in the coming years. One consideration is if the high case count now means a lower case count in the next few years. Depreciation and depreciation recapture Depreciation is a bookkeeping tool that can help free up capital for growth and improvements. This allows you to reduce taxes now so you have more money to buy new equipment or make other upgrades. If you’ve already used this tool for your business, then keep the recapture in mind as taxes rise. Recapture Tax essentially means you will owe a sum of those tax savings (depreciation savings) back when you sell your asset down the road “Depreciation Recapture Tax." Look this tax up so you aren’t blindsided with taxes down the 42 www.ogr.org | Summer 2021 road. Selling now could save you buckets-full due to the rising income tax rate that will impact this tax rule. Finding buyers There's no better way to maximize value for your business than having a well-formulated marketing package and strategy coming off a high-case year like 2020. The fact is, the best time to sell is when you don’t have to. That allows you to seek out and wait for the best buyer. You want the process to work like an auction. You want multiple offers, structured in different ways, so that you can pick the one that is best for your future. At JCG, we have a tailored marketing strategy that seeks the perfect match for your business. Just because the market is ready doesn’t mean you are Even though the market is ripe, it may not be time for you personally to sell your business. Additional considerations affect your selling decision, such as staff succession, retirement income needs, age, etc. It’s never too early to plan your exit strategy, and we can help you lay the groundwork for top results. We can start by reviewing your performance in the areas of customer service, workplace, marketplace and financials to see where you are and what you can do to get the most value from your business. Jake Johnson, president and chief executive officer, is known as an innovator, change agent and thought leader. His strong foundation in accounting, financial analysis and EBITDA forecasting is complemented by technology savvy and broad general management qualifications in business development and operations. OGR members can get their choice of a high-level demographic analysis or revenue forecasting analysis from the experts at Johnson Consulting Group - for free. Reach out at info@JohnsonConsulting.com to get started.
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