- Category: Industry News
- Created: Wednesday, 20 May 2020 17:38
- Written by Craig Castelli
By David Ogurek, CVA
When this unforeseen global pandemic began a few months ago, countless questions swirled inside the heads of many business owners, beginning with “What do I do now?”. Others followed like, “How will I pay my bills?” or “What will happen to my employees?”. Fortunately, several programs were created to help business owners answer those questions. As plans begin across the country to reopen many businesses, more questions will arise like, “How will I get my business back to where it was before?”, and, more importantly, “What is my business worth now?”.
Unfortunately, for many business owners, their company will be worth less than it was just a few months ago. While a lower fair market value may affect the potential sale of a business to an outside buyer, there can be a significant benefit to a reduced fair market value: lower gift taxes when transferring interest in a business to a family member.