"Yes, I Commit Tax Fraud... So My Business Is Worth More!"

This is paraphrased but I hear this all the time. Read below to see what owners have actually said...

I am not sure why some owners think admitting to tax fraud will increase their sale price.

I have actually heard sellers say:

"The business makes way more than what is on the tax return." "We run a lot of personal expenses through the company." "We take cash under the table, so profits are actually higher!"

Congratulations, you just told the buyer that:

Your financials are a mess Your tax returns are unreliable The IRS might be knocking soon

Nothing scares buyers away faster than shady books. If your tax return does not match your "real" numbers, expect one of two things:

A lower offer No offer at all

If you are hiding income from the government, why would a buyer trust you to be honest with them?

Clean books = higher valuation. Tax fraud = no deal.

Simple math and honesty go a long way.

Are you buying a business? Email me redacted to make sure you are buying a business that is worth your time and money.