When you sell or transition your business you may face a significant tax bill – in fact, if you’re not careful, you could find yourself with less than half of the purchase price in your pocket. But, if you ultimately want to sell and today is not the optimal time, there are also strategies to recapitalize in order to take some chips off the table in a tax-preferred manner. The recapitalization strategy is an opportunity to bring the concepts of cashflow financing, business valuation, and due diligence together, along with tax minimization and corporate structure planning. Fortunately, there are a number of opportunities to reduce or even eliminate tax, with the right preparation and enough time to implement. The moral of the story? Structure your company well in advance of a potential sale or recapitalization, and consider all of your business options to reap the benefits; or fail to plan ahead of time and pay the price. The presenters will discuss real-world examples of proper versus improper planning related to the transition of your business so that you can avoid pitfalls.
This session runs at the same time as Session B2.