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For owners of $2M–$50M companiesMost of what you keep is decided before the term sheet.
Exit planning is the tax and legal work of structuring a business sale in advance, so the owner keeps more after tax. It covers whether to sell assets or stock, timing, how the price is paid, and tools such as installment sales and deferred sales trusts. Most of the savings depend on decisions made before a buyer’s letter of intent is signed.
Signs it’s time.
If two or more of these sound familiar, this is likely where you’ll be matched.
- A buyer, competitor or private equity firm has reached out, and no LOI is signed yet.
- You’d like to sell within the next one to five years.
- You don’t know what the sale would cost you in taxes.
- Your books and contracts wouldn’t survive a buyer’s due diligence today.
- You want income after the sale, not just a lump sum.
You walk into the negotiation knowing what you’ll actually keep.
- Deal structure is chosen for after-tax proceeds, not just headline price.
- Tax deferral tools are in place before the letter of intent, when they still work.
- Books and contracts are cleaned up ahead of due diligence.
- Legal and tax advice on the deal come from one coordinated team.
What’s typically included
- Pre-sale tax planning
- Asset vs. stock sale analysis
- Installment sale structuring
- Deferred sales trust planning
- Trusts and charitable structures
- Due diligence preparation
Sale & Exit Planning, answered.
What is a deferred sales trust?
A deferred sales trust is a structure in which a business owner sells to a trust in exchange for an installment note, and the trust then sells to the buyer. It is designed to spread capital gains tax over the years payments are received, under the installment sale rules of Internal Revenue Code Section 453. It must be set up before the sale closes and doesn’t fit every deal, so it needs case-by-case review.
When should I start planning to sell my business?
Ideally one to three years before a sale, and at minimum before you sign a letter of intent. Many of the structures that reduce taxes, along with cleaning up books and contracts for due diligence, take time and can’t be added once terms are agreed.
What is the difference between an asset sale and a stock sale?
In an asset sale the buyer purchases the company’s assets, and in a stock sale the buyer purchases the owner’s shares. Buyers often prefer asset sales for tax and liability reasons; sellers often prefer stock sales because more of the gain may qualify for capital gains rates. The structure can change what you keep by a significant amount.
Not quite the right fit?
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A one-minute application, then a few questions about your structure, books and advisors. The first call opens with a plan instead of an interview.
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