A dream team may include investment bankers, accountants and attorneys specializing in wealth-transfer strategies. If choosing long-standing advisors, be sure they are up to the deal's complexities.
The owner needs to draft a timeline of activities and be mindful of factors that will impact the business valuation, such as an independent audit, a strong management team and a business continuity plan.
Sellers should determine how much is enough to accommodate immediate spending needs and the amount they wish to set aside for heirs and philanthropy goals. Plans to reduce taxes should also be made.
Private equity buyouts, tax-free mergers and buy-sell agreements are options to consider when selling. Examine the capital gains advantages of a stock sale versus an asset sale's lingering liability.
The information provided is for illustrative/educational purposes only. All investment strategies referenced in this material come with investment risks, including loss of value and/or loss of anticipated income. Past performance does not guarantee future results. This material is not intended to constitute legal, tax, invest mentor financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation.BNY Mellon Wealth Management conducts business through various operating subsidiaries of the Bank of New York Mellon Corporation.©2016 The Bank of New York Mellon Corporation. All rights reserved.