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What is a good way for you to get top dollar for your business?
How do you successfully transfer your business to a child, key employee or co-owner? The most successful method is to follow a recipe that mixes, in equal measure, three key ingredients:
- One part: the ability, experience and dedication of the prospective new owners;
- One part: a company with strong, consistent cash flow and little debt; and
- One part: a transaction designed to prevent income taxes from eroding the cash flow available to you, the seller.
There may be nothing worse for a business than to have its owner suddenly die. . . especially if it's your business.
Let's look at what can happen when an owner dies.
The last step in your Exit Plan is Wealth Preservation Planning. But that doesn't mean you should wait until you are out of the business to begin actively preserving your wealth. In fact, if you wait until the value of your business is converted to cash, it may be too late to realize all of the benefits of wealth preservation. The most significant and powerful claimant to your wealth is the IRS — especially in the estate tax arena.
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