Developing an exit strategy well in advance of the sale of your business can make a big difference in the outcome. At BNY Wealth, we understand the personal importance of your business, as it may serve as the primary source of income for you and your family. That’s why preparing for the sale of your business requires careful planning well in advance of the transaction.
BNY Wealth can guide you through this transition in a way that will help you fulfill your personal and financial goals.
Key Considerations
The decision to sell your business is significant, as it has the potential to impact your life both financially and personally. Time and time again, our experience working with business owners has demonstrated that thoughtful planning in advance of the sale can make all the difference.
Start Planning Early
Pre-planning should ideally begin at least three years in advance of the sale, allowing you to:
- Assess the marketplace and factors that could affect the transaction
- Evaluate potential buyers and alignment with your company
- Consider different sale structures, wealth-transfer strategies and the impact on family and stakeholders
- Determine cash-flow needs after the sale
Build The Right Deal Team
Leveraging the extensive BNY network of advisors, who are experienced in complex sales, we will help you assemble the right deal team, which may include:
- An investment banker to assist with valuation and deal terms
- A wealth advisor to coordinate planning for a post-sale life
- An M&A attorney to help structure the deal
- A trust & estate attorney to assist with legacy planning
- A certified public accountant (CPA) to ensure the deal is fulfilled in a tax-efficient manner
What Will Change After The Sale
Depending on your unique situation, the following tax strategies may be appropriate:
- Income tax mitigation strategies, like Qualified Opportunity Zone (QOZ) investments and charitable remainder unitrusts (CRUTs)
- Rollover and exclusion techniques, including Section 1045 rollovers and Section 1202 capital gains exclusions
- Estate freezing and transfer techniques, such as grantor retained annuity trusts (GRATs) and intentionally defective grantor trusts (IDGTs)
BNY Has Been Advising Business Owners For More Than 240 Years
Our lengthy history of partnering with business owners and their advisors puts us in a unique position to help you navigate the complexities of the business sale and manage post-sale wealth. We are committed to helping you transition to the next phase of your life by securing your personal financial future while ensuring minimum disruption to your lifestyle.
No matter how complex your situation, we have the experience to provide a uniquely tailored and comprehensive approach to achieving your goals.
Our Active Wealth Approach For Business Owners
Let’s Start A Conversation
Selling a business is a complex process that requires foresight in addition to an experienced team of professionals with deep expertise across many fields. BNY Wealth can help you carry out a successful business sale, and it can also help you plan for the next phase of your life as well as the legacy you wish to create. We welcome the opportunity to support your goals.
