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Capital Strategies Group

Frequently Asked Questions

I am contemplating exiting my business. What sort of plan should I have in place?

You should have an exit plan in place before moving forward with the sale of your business. An exit plan explores a transition via an outright sale, recapitalization, intergenerational transfer, formation of an ESOP, or initial public offering.

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How can I determine the true value of my business?

To determine the true value of your business, you must look at your business through the eyes of a potential buyer. A professional evaluation can determine what the market is willing to pay.

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I have considered selling to one of my competitors. Is this a wise plan?

You may think this is your best course of action--to sell to a competitor in your industry; however, competitors may not pay the highest price.

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Could my financial statements negatively affect the value of my business?

Showing a buyer your financial statements may give a false impression -- too low -- of the company's value.

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I'm thinking of selling my business in the next five years or so. How long will the sales process take should I want to retire or pass on my business in that timeframe?

On average, it takes a minimum of a year to sell a business, but each transaction is unique. Many buyers will pay sellers to stay on through a transition period that can last several years following a sale. If you are considering selling within five years you'll want to familiarize yourself with the sales process as soon as you can.

Neither Morgan Stanley Smith Barney LLC, Capital Strategies Group nor any other person accepts liability whatsoever for any loss (howsoever arising and whether direct or consequential) from any use of the information contained herein or otherwise arising in connection herewith. Morgan Stanley Smith Barney LLC, its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor. Capital Strategies Group is a business of Morgan Stanley Smith Barney LLC.

For more information, please contact your Financial Advisor.

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