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Wisdom for Business Owners: “If You Don’t Know Where You’re Going… You Might not Get There” – Yogi Berra

Yogi certainly had a way with words. Of course, his point is that planning for a goal or destination is paramount to the success of achieving the desired outcome. This certainly rings true for business owners who are thinking about selling or transitioning their companies. Typically, they’ve spent years or decades building their business through all types of economic cycles with successes and failures along the way. Planning a transition to internal key employees, family members, or even an external sale to a third party is critical to the sales realization. How much is the business worth? What impact may income taxes have on the success of the transaction? What is the minimum price that an exiting owner needs to establish financial independence? Based on current law, could 2012 be an opportune time to gift shares of the business to family members based on current lifetime gift tax exemption levels?

All of these questions need to be answered before negotiating a transaction. Failure to plan may yield mistakes that can cost the selling owner valuable dollars. These questions also require consultation with various types of professional advisors with expertise in different areas, most notably attorneys, tax professionals, investment bankers and financial advisors. Establishing a team of professionals to advise in your best interest prior to a sale is sound planning. To learn more about preparing to sell a business in a way that the business owner is able to maintain control of the selling process, click here.

 

Important Disclosure Information

Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request. This presentation is not a substitute for personalized advice from RegentAtlantic. This information is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.

Important disclosure information

Please remember that different types of investments involve varying degrees of risk, including the loss of money invested. Past performance may not be indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies recommended or undertaken by RegentAtlantic Capital, LLC (“RegentAtlantic”) will be profitable.

Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request.

This article is not a substitute for personalized advice from RegentAtlantic. This article is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.

RegentAtlantic does not provide legal or tax advice. Please consult with a legal and or tax professional of your choosing prior to implementing any of the strategies discussed in this article.

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