PPB July 2016

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with periodic updates provides a
number of benefits:
• Benchmark for improvement
in profitability and value
• Realistic expectations when
negotiating a sale
• Estate planning
2 Tax Planning: Owners
should work with finan-
cial advisors to develop a
plan to minimize the tax conse-
quences of selling their compa-
nies. For instance, C-Corps have
substantial negative tax conse-
quences when they are sold.
They should be converted to S-
Corps as soon as possible
because there is a waiting period
to realize the tax savings of an S-
Corp.
3 Succession Plan: In order
to maximize the ultimate
value of their companies,
owners should develop succes-
sion plans that identify the time
and circumstances that will trig-
ger their efforts to sell their
companies. A plan doesn’t have
to be carved into stone, but
should be thoughtfully prepared.
Otherwise the disposition of
companies is determined by out-
side circumstances, health or
financial issues. Excellent oppor-
tunities will be lost or over-
looked.
As you can see, none of the
actions in this article are diffi-
cult or onerous. They all have
benefits to owners and their
companies irrespective of
whether they are sold. They do
require effort and discipline to
implement, but once done, they
will not be difficult to maintain
and will result in the maximiza-
tion of value if and when own-
ers decide to sell.
Jeffry Meyer, MAS, CPA, is CEO of Huntertown, Indiana-based Certified Marketing Consultants, Ltd., a PPAI business services member. He
has been active in the promotional products industry for more than 35 years. He and his two partners serve companies exclusively in the pro-
motional products industry with services including mergers and acquisitions, business valuations, strategic planning, business plans, marketing
plans and general consulting.
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72 • PPB • JULY 2016 THINK
MANAGEMENT