When It’s Time to Sell. . .

Prior to the transaction, a business owner should fully understand the tax implications of the transaction so that the deal can be structured in a way that maximizes the net proceeds from the sale. This includes estate issues, as well as payment of outstanding debts. A frequent misconception is that buyers and sellers cannot both benefit from the same deal structure. In many cases, a deal can be structured to enable a lower purchase price good for the buyer, while yielding a higher net for the seller. What is critical is a thorough understanding of the issues and options, and for this reason, involving an experienced accountant or tax lawyer early in the process is essential.