Do you have plans to eventually transfer control of your business to another person or business entity? If so, you will need a proper business succession plan to ensure you can successfully transfer the business without disrupting its operations. If your goal is to convert the value of your business into cash or income for a new business venture, you will need an exit plan for your business that will maximize profits and eliminate certain taxes. Without adequate planning, your company can end up being valued for less than it’s worth or you might have to pay higher taxes when it is finally sold. But with a comprehensive exit strategy designed by an experienced attorney, you can make smart decisions that will protect your best interests.
Do I Really Need an Exit Strategy?
If you own a business, you need an exit strategy for the following reasons:
- Save on Taxes: With the right exit strategy, you can funnel a portion of your profits so that you remain in a lower tax bracket when it’s time to liquidate the business. You can also include plans to leave your business to a family member that will efficiently limit certain estate taxes.
- Save on Investments: It is important to strategically invest in assets that increase the value of your business over time. If you are planning on selling or transferring your business, you need to make different investments than if you were planning to keep the business long-term.
- Maximize the Valuation: If you decide you want to transfer your business to a family member, it is important to maximize the after-tax value at the time of the sale.
Other reasons business owners consult with us about exit planning include:
- Providing continuity for the business
- Ensuring employees remain employed after the sale of the business
- Fair distribution of business assets to heirs and other beneficiaries
Custom Exit Strategies for Your Business
Our legal team at DiPietro Law Group, PLLC can help you make sure the following matters are properly handled:
- Employment Agreements
- Employment Termination Agreements
- Non-Disclosure Agreements
- Restrictive Covenants
- Technology License Agreements
- Corporate Documents
- Stock Records
- Financial Reporting
- Tax Entity Selection
Talk to One of Our Business Lawyers Today
The legal team at DiPietro Law Group, PLLC, is here to use our years of experience and extensive knowledge of the law to come up with an exit strategy for your business. Whether it’s through a management buyout or private equity infusions, we can review the many ways you can safely exit your business and protect your profits. Our goal is to advise you and create a customized plan that covers your unique personal and business interests, so let us get to work for you today!
To speak to a member of our law firm, call (888) 530-4374 to request your consultation.