PLANNING YOUR EXIT STRATEGY

The phone rings. It’s my client George Smith. I have been expecting his call and it’s right on time...about 10 days after George signed a Letter of Intent to sell his business.

“Alan, I can’t sleep. I know we are selling for a fair price, maybe even a great price.But I am not sure I am going to be able to live on what I have left over after I pay taxes.”

I get this call almost every time and, thankfully, experience has prepared me and, in turn, I have prepared my clients.“Remember, George, we talked about this.We have done a tax impact analysis and we have worked out how you are going to be financially independent.No, your after - tax proceeds will not allow you to replace your Seller Discretionary Earnings, but we have put some things in place that will augment your earnings.You will be fine.

It happens almost every time.Business owners don’t seem to grasp the difference between what they receive in salary and their true Seller Discretionary Earnings.Most owners believe the sale of their business will fund their retirement.If it were just what they pay themselves in salary it might; but in 40 years’ experience I have never seen the after tax proceeds of a sale sufficient to replace the total amount they are actually taking out of the business.

This webinar will provide attendees with 3 different approaches to planning for your exit. Attendees will learn how, if they start early enough, they can effectively sell their business twice.

1 CEU Cat 3