IT and Business Insights for SMB Solution Providers

2 Reasons to Sell Your Low-Growth IT Services Business : Page 2 of 2

If you’re stuck at sub-10% growth, your enthusiasm and your tax responsibility are considerably decreasing, making it a great time to sell. By Reed Warren

Businesses always have a way around taxes, though it is easier when you’re not in hyper-growth mode. If you’re facing increased competition, higher costs, and lower profits that hinder growth and expansion, then your tax responsibility considerably decreases, which makes it a great time to sell. 

Before you do, however, there’s one very important key factor to think about: What is your company’s fair economic value?    

A certified valuation done by a certified valuation consultant can help you determine that. A valuation can save you money by helping you establish how to get as much from the sale as possible and avoid typical problems related to a lack of due diligence or proper financial review. A valuation can show you where your value gaps exist and what to do about it to sell at the number you want. 

You’ve worked hard to build your business. Recognizing the right time to sell is a fitting capstone.

REED WARREN is CEO, Certified Valuation Analyst (CVA), and value builder advisor at iT Valuations. During his 30+ years working in the IT Services and technology industry, he’s provided business strategy, consulting and M&A services (60+ successful transactions) to over 250 companies across 19 different countries. Learn more about iT Valuations here.

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