A Big Windfall for Small Biz
The Bush administration's recent tax cuts are having an unintended effect: They're encouraging entrepreneurs to sell their companies. The cut in the capital-gains tax from 20% to 15% means most sellers can pocket an extra 5% of the sale price of their businesses. "I think this is going to have a huge effect,'' says Beatrice Mitchell, co-founder of investment bank Sperry, Mitchell & Co., which specializes in midsize outfits. "I've already had a couple business owners say, 'Maybe the pricing isn't quite what I wanted, but with the extra 5% I'll do it.'''
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