Tax Implications of Sale Should be Addressed at Beginning of Sale Process
Selling a business is a complex process that often requires creative problem solving skills along the way to get a deal across the finish line. Failure to confront tax implications early in the sale process can create big problems late in the game. And the later a problem is discovered in the process of a deal, the more difficult it is to overcome.
Possible scenario: Deal stalls at closing table because seller miscalculates tax implications of deal which now conflict with post sale plans. Buyer leaves the deal table out of frustration.
Tax planning affects the timing of your business sale (capital gains), structure of your business sale (stock/asset purchase), and your ability to effectively transition to the next chapter of your life once the sale is complete. Business owners who find the most satisfaction from their business sales consult experienced transaction tax specialists well in advance of completing a deal.
In some cases, failure to seek proper tax counsel can result in extra payments imposed on the seller in excess of 30%.
Charles Tenney & Associates has seen a well planned tax strategy save $250,000 to $500,000 in taxes several times during our 37 years of selling transportation businesses.
If you do not already know or have access to a tax specialist, Charles Tenney & Associates would be happy to refer you to seasoned professionals who can help you prepare properly.
