Selling your web host business - Act I
- By Tom Millitzer on February 27, 2008
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FacebookFirst we will start with an alert---because timing can be everything.
Marbles… One of the most important parts of any transaction is how many marbles you get to keep. If you are considering selling your company in 2008, 2009 or 2010 please run down (not just trott, put off til' tomorrow...I said RUN) to your tax accountant. If it would be a stock sale, which frankly you really don’t know today, you could be in trouble.
Why? The Bush tax reductions will soon start to evaporate, specifically the long term capital gain treatment which expires December 31, 2008 ---- yes a short 10 months away. In a stock transaction it could cost you another 5% in taxes.
Well it is only 5% some people may say. Yes but it takes almost 7% to make that up after paying taxes on the incremental amount you need to cover the poor timing.
So if you are considering selling in 2008 you should start earlier than later. And if you are considering 2009 ---- think again.
========== MORE ABOUT TOM ==========
Tom Millitzer provides merger and acquisition services to Internet service firms including Web Hosting, Data Centers and similar sectors. In 1994 he founded and is President of NCC - New Commerce Communications, Inc. He has been involved in almost 200 mergers and acquisitions , finance an... (Read full bio)
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Comment by Anonymous on Wednesday, February 27, 2008
Sweet fear mongering over politics, please stop this crap.
Comment by Anonymous on Saturday, March 01, 2008
No politics here. Fear mongering would be if I would suggest that a new Congress would raise taxes, which some candidates have suggested. I have only stated a fact regarding current tax law so the owner of a hosting company may act prudently.
Comment by Anonymous on Tuesday, March 11, 2008
How can politics be crap Ben you obviously haven't tasted swett success in business yet or you would not be making rubbish comments like that.
Very valid point Tom
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