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  1. Reduce expenditures, including salaries and administrative costs.
  2. Defer any expansion that would take years to show a profit.
  3. Increase gross revenue by increasing sales and prices.
  4. Eliminate obsolete inventory; write off to reduce taxes.
  5. Clean up accounts receivable. The buyer may not buy them anyway, or may require indemnity if they are not collectible.
  6. Obtain, and keep current, written contracts from regular customers.
  7. Diversify your customer base.
  8. Eliminate unprofitable parts of the business by increasing the minimum price for service work, and reducing the number of stops that the company makes to service a customer.
  9. Firm up dealer and distributorship agreements, and review or have reviewed by counsel, to obtain authority to pass the business to key members of management, including family members. Dealer agreements may provide that the manufacturer must consent to transfer the franchise.
  10. Seek to obtain good multiyear contracts with vendors and suppliers.

Legal disclaimer:

Neither SEI nor its affiliates provides tax advice or other legal or regulatory advice. To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein. You should seek advice based on your particular circumstances from an independent tax advisor.

The information contained in this communication is not meant to substitute for a thorough estate planning and is not meant to be legal and/or estate advice. It is intended to provide you with a preliminary outline of your goals. This information is for educational purposes only and should not be interpreted as legal opinion or advice. Please consult your legal counsel for additional information.

SEI Private Wealth Management is an umbrella name for various wealth services provided through SEI Investments Management Corporation, a registered investment advisor. Investing involves risk including possible loss of principal.

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