4770 Von Karman Avenue, Newport Beach, California 92660 Directions facebook linked in
Trial Record: Over 90% Win Rate Learn More +
Practice Areas +

Don't forget about the money when selling a business

The dream of many entrepreneurs is to build a fledgling business to a point where it becomes noticed by a much larger competitor. The threat of gaining market share can increase the company’s value and make it a valuable acquisition, thus allowing the entrepreneur to “cash out” and pursue another dream.

When preparing to sell a company, it is important for entrepreneurs to take some time for financial planning exercises. They can help in putting in perspective a good floor price, as well as what may happen if an offer exceeds the prospective ceiling of value. This post will identify a few issues to consider.

Retirement plans – Whether you are decades away from your proposed retirement or planning to withdraw from the workforce next year, analyzing how selling a business will fund your retirement is an important consideration. Perhaps a provision in the sale will allow you to maintain a small percentage of the business or enjoy a continuous dividend even though you are no longer with the company.

Major purchases – It is not uncommon for an entrepreneur to use the proceeds from the sale of a company to fund a new endeavor. Perhaps you have always wanted to change industries and found a new company.

Charitable endeavors – If you have charitable aspirations with some of the proceeds, perhaps that can be achieved by funding or contributing to a donor advised fund (DAF). This type of entity allows donors to make a charitable contribution from the proceeds of a business sale. This will create an immediate tax benefit and allow the donor to make additional donations over time from the fund.

If you have additional questions about selling a business, an experienced attorney can advise you.

No Comments

Leave a comment
Comment Information

Start Your Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Klein & Wilson

Klein & Wilson
4770 Von Karman Avenue
Newport Beach, CA 92660

Newport Beach Law Office Map
Phone: 949-478-0521
Fax: 949-631-3703

Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters.

Bottom-to-top-button