Business Exits & Liquidity Events
I'm planning to sell my company in the next three years—what can I do now to minimize taxes and maximize what I keep?
Selling a business is often the single largest financial event in an owner's life. The decisions you make in the years leading up to the sale—not during or after—often determine how much of the proceeds you actually keep.
Start With the End in Mind
Most business owners focus on maximizing the sale price, but the after-tax proceeds are what actually fund your life after the exit. A higher sale price with poor tax planning can result in less wealth than a moderate price with excellent planning.
Key Strategies to Consider
Entity structure review: Is your current structure optimal for a sale? Sometimes a conversion or restructuring 2-3 years before exit can significantly reduce taxes.
Qualified Small Business Stock (QSBS): If your company qualifies, you could exclude up to $10 million in gains from federal taxation.
Charitable planning: Donating appreciated stock before a sale can provide significant deductions while supporting causes you care about.
Installment sales: Spreading the gain over multiple years can keep you in lower tax brackets and defer taxes.
Opportunity Zone investments: Reinvesting gains into qualified opportunity zones can defer and reduce capital gains taxes.
The Coordination Challenge
Effective exit planning requires coordination between your investment advisor, CPA, estate attorney, and potentially an M&A advisor. We act as the quarterback, ensuring all the pieces work together toward your goals.
Timing Matters
Many of the most powerful strategies require 2-3 years of lead time. Waiting until you have an offer on the table often means leaving money on the table. The best time to start planning is now.
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These scenarios represent common situations we help families navigate. Each client's circumstances are unique, and outcomes vary. This content is for educational purposes only and does not constitute financial advice.
