Here's what nobody tells you:
The owners who sleep well after selling didn't sell to the highest bidder. They sold to the right buyer.
They found someone who valued what they built. Who kept the team. Who honored customer relationships. Who saw the business as more than a financial instrument.
Sometimes that buyer paid 10% less. Sometimes they paid more because they understood the intangible value.
- Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s
- When an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting
- Remaining essentially unchanged It was popularised in the 1960s with the release of Letraset sheets
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The difference:
Transactional exits: Maximize price, minimize everything else.
Legacy exits: Maximize outcome for all stakeholders—employees, customers, community, and yes, you.
Both are valid. But only one lets you walk into the local hardware store without avoiding eye contact.
Then you sell to the highest bidder who:
- Fires half your team
- Moves operations out of state
- Guts customer service
- Extracts value and flips in 3 years
You got paid. But was it worth it?
The question to ask before you sell:
If I run into my best employee three years after this sale, will they thank me or avoid me?
If your customers hear you sold, will they be relieved or worried?
When people mention your company name, will you feel pride or regret?
Money matters. Legacy matters more.
Choose buyers who understand the difference.
Because you can't buy back your reputation with the exit proceeds.
Understanding Bonus Depreciation in the Manufacturing Sector
Bonus depreciation allows manufacturing businesses to immediately deduct a significant percentage of the purchase price of eligible assets, such as machinery and equipment, in the year they are placed in service. This accelerates cost recovery and improves cash flow, which is critical for capital-intensive industries.
With the current bonus depreciation rules, manufacturers have a valuable opportunity to deduct a significant percentage of qualified equipment purchases in the year they’re placed in service. This provision is especially advantageous for SMBs looking to optimize their balance sheets ahead of a sale or merger.
How Bonus Depreciation Impacts Your Business’s Financial Statements
Implementing bonus depreciation significantly reduces taxable income in the year of the asset purchase, which can improve after-tax cash flow and present a leaner, more agile operation to stakeholders. However, this also results in lower book profits for the year, so it’s crucial to understand the trade-off between tax benefits and reported earnings.
For businesses preparing for sale, bonus depreciation can strategically position the company by demonstrating operational efficiency and prudent capital expenditure management. Transparent reporting and proper reconciliation of tax and book depreciation are essential to maintain credibility with potential buyers and auditors.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries
Presenting Enhanced Valuation to Investors and Buyers
Bonus depreciation not only strengthens your balance sheet but also provides a compelling story for investors and buyers. By highlighting recent, tax-advantaged capital investments, you can demonstrate a commitment to operational excellence and future-readiness.
During due diligence, clear documentation of bonus depreciation strategies and their impact on EBITDA, tax liabilities, and cash flow reinforces enterprise value. This positions your company as a lower-risk, higher-return investment, giving you leverage in negotiations and maximizing exit outcomes.
Action Tip:
Write your "Exit Legacy Statement" today—three paragraphs describing what you want your business to look like 3 years after you sell (team, customers, culture, community impact). Share it with your spouse or advisor. When offers come, measure every one against this statement. The right buyer will honor it. The wrong one will dismiss it. That's how you know.
