Exit and Tax Strategy Service

Exit and Tax Strategy Service from Chris Kerth

The most stressful and anxiety creating issue confronting business owners who decide to sell their business is fear of the unknown.

When selling a business, the most asked questions from business owners include:

  1. In what way will my business likely be sold?
  2. What do I need to know to effectively negotiate with a Buyer?
  3. Will I be able to get all cash or will I be required to finance part of the transaction?
  4. How much tax am I going to pay?
  5. How much will I end up with in my pocket at the completion of the sale?

As most people will never go on a trip to an unfamiliar destination without some form of travel directions the same should be true with selling a business. Selling a business is very similar to going on a trip. Business owners need some form of travel directions so they can traverse through this unfamiliar territory with greater confidence, making use of an Exit and Tax Strategy Service is almost mandatory.

The answer to your business transaction travel directions is a…


Transaction Structuring Report

A Transaction Structuring Report is a Management Tool available through one of Murphy Business’s third party affiliates. It will provide you with the answers you need and want with the end result being reduced stress and anxiety because you will know what you didn’t know. 

Benefits of this report Include:

  • Turns tax management into a Proactive Planning Component of the business transfer as opposed to being a reactive unplanned component
  • Models various structuring solutions which can be used to minimize tax and maximize Seller proceeds
  • Structuring solutions modeled in report can be used by the Seller to negotiate with a Buyer during the negotiation process
  • Details the impact to the Buyer for the various structuring solutions provided in the report providing the Seller beneficial negotiating information otherwise unavailable
  • Calculates projected transaction gains and categorizes them by income class (i.e. Ordinary Income, Depreciation Recapture, Un-recaptured 1250 Gain, Capital Gain, etc…)
  • Projects tax, federal and state, to be paid by Seller for the year of sale and for future periods during the collection of any applicable installment payments
  • Forecasts Net “After-Tax” Proceeds to be received by Seller at the initial closing and over the term of any agreed upon payout arrangement
  • Allocates and categorizes by class the Asset Components of each structuring solution as per the requirements for the completion of IRS Form 8594 – Asset Acquisition Statement.
  • Results associated with each structuring solution are provided in both a narrative and numerical format to allow for maximum understanding and application of each solution
  • Information contained in report positions the report as a value-added business transfer planning tool whether the Seller is a C-Corporation, S-Corporation, Limited Liability Company, Partnership or Sole Proprietor
  • Educates a Seller regarding the importance of planning for tax and how structuring will impact Net “After-Tax” Proceeds
  • And Much More ……………

Be prepared when it comes time to negotiate with a Buyer by being proactive and not allowing the Buyer to have the upper hand. Information is power and with a Transaction Structuring Report you will improve your negotiating power.

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