Executing and Closing the Sale
Now that you and your buyer have agreed to and signed the purchase agreement (read about it here), there’s only one more step to prepare for and accomplish – the actual closing of the sale. If you and your buyer are in the same general location (i.e., the same or neighboring cities), as a rule […]
Life is Finite; Death is Final. In the Meantime . . .
Very recently, one of our team lost a close family member. Too young, too sudden, and much too heartbreaking. We’re all grieving for her and her family. It makes me think on my own mortality. How brief our life is, how unpromised our tomorrows. As if in answer to my thoughts, I saw, on a […]
The Purchase Agreement: Explained
Our last installment concerned the due diligence process during the sales negotiations (read it here). This week, we discuss the all-important purchase agreement. Your Transaction Advisory Team (we discussed assembling your team in our first installment, here) should have already researched any legal requirements applicable in your home state to the sale of a business […]
Effective Sell-Side Due Diligence
When we began our series on selling a closely-held business, we discussed various strategies for getting your business ready to sell (read it here). That, in fact, is the start of your due diligence process – but the process is, to a great extent, an ongoing one over the sales negotiations. Still, it’s best to […]
New Proposed IRS Regulations on RMDs
On Wednesday, February 23, 2021, the IRS and the U.S. Department of the Treasury issued REG-10954-20, proposing regulations which would update the rules governing required minimum distributions (RMDs) from qualified retirement plans and annuities. The proposed regulations are pursuant to legislative action which made statutory changes to existing law covering these RMDs, most specifically and […]
Amanda Doherty’s Journey
Last December, a young woman reached out to me for help with her taxes – her name, Amanda Doherty. I was on vacation in Hawaii at the time, but I do check emails, and we juggled available times back and forth across the thousands of miles and six time zones. Well, we did finally talk, […]
Allocating the Purchase Price
In our last installment, we discussed IRS Code Section 1202, pertaining to the tax benefits on sales of qualified small business stocks. Today, we discuss one of the most important facets of the sale of your business – the allocation of the purchase price, once that price has been agreed upon. When a business is […]
Qualified Small Business Stocks – IRS Section 1202 Explained
Last week, we discussed structuring the sale of your closely-held business (read it here). In that post, we briefly referenced IRS Code Section 1202, which provides for the exclusion of some or all capital gains pursuant to the sale of Qualified Small Business Stock (QSBS) from tax liability at the Federal level. Some states mirror […]
Structuring the Sale
In our last installment (read it here), we discussed the Buy-Sell Agreements necessary if you are selling your business interest to your partner(s). This week, we return to the premise of sale to an outside buyer, and consider how to structure the sale. There numerous ways to structure a merger, divestment, or acquisition. However, most […]
Partnership Buy-Sell Agreements
In our last installment, we discussed Letters of Intent, in the context of selling your closely-held business to an outside buyer. This week, we look at a different type of sale. If your business is a partnership, selling to your existing partner(s) can be one of the simplest methods of transferring your interest. Your partner(s) […]