Advice On How To Sell Your Company
Companies are sold constantly.
When is it time for you to sell yours?
Knowing when and the way to sell your company is considered to be probably the most overlooked aspects of entrepreneurship.
They just don’t teach it in business school, or easily mention it in passing, as if such a thing is self-evident and could not possibly want for any detailed examination.
One area that does attempt an even more thorough look is accounting ethics.
Due to all the corporate scandals that are regularly in the news, many professional licensure boards throughout the country are now needing ethics as a strong element of any continuing education credits earned.
Finding out how to legally and ethically sell your company has now become a matter that concerns your accountants also.
For it is the accountants who enable abusive practices which could mislead buyers or the public at large.
The CEO of a publickt traded company might have his or her accountants make things look bad financially in readiness for a secretly organized takeover.
With things looking bad as a result of use of accounting gimmicks even though the business is actually as sound as ever, the share cost will decrease, enabling the company to be purchased at a great discount – with the CEO secretly rewarded to the tune of tens and even hundreds of millions of dollars.
Talk about knowing how to sell your company!
It’s not only private investors that are harmed by such accounting shenanigans; think about one of the most common scams perpetrated on the basis of the theory that private companies tend to be more efficiently run than public ones: a public resource could be made to look inept and wasteful, leading to calls for its privitization.
The public officials in charge are then treated upon the achievement of the sale, and suddenly everything seems great again.
But things were never bad to start with; it was only through accounting sleight-of-hand that finances could have looked troubled whatsoever.
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