Planning an exit strategy for your business – Tips to maximize value and minimize taxes

Description

Abstract: Every business owner should have an exit strategy that helps recoup the maximum amount for his or her investment. Understanding the tax implications of a business sale will help the owner plan for — and, in some cases, reduce — the impact on a tax bill. This article focuses on selling a business to a third party and provides some considerations to help ensure the transition is as smooth as possible. A short sidebar covers whether an employee stock ownership plan (ESOP) might be a viable exit strategy if the business is organized as a corporation and the seller isn’t interested in leaving it to family or selling to an outsider.