A tax-structured sale is a specially designed transaction under the Internal Revenue Code that permits the seller to reduce or defer recognition of gains from the sale of a business or real estate to the tax year in which the related sales proceeds are received. This lets the seller pay taxes over time, while having the payment guaranteed by a high-credit, quality alternate obligor, who accepts assignment of the buyer’s payment.
Typically, your business broker or intermediary is not qualified to give this type of advice, but should have access to qualified professionals who are. With pre-planning before going to market and exploring such alternatives, sellers can significantly increase their net proceeds from the sale of their businesses after taxes. How much you get to keep after taxes, of course, is what matters more than the gross amount of the transaction proceeds.
Knowing this important information before going to market can provide the seller with leverage, if needed, in the negotiating phase of the sale process. Dolan Sales, Inc. has professional qualified resources, fiduciary and non-fiduciary, who can provide you with this important and valuable information.
If you would like a confidential conversation about how to plan and prepare your business to be sold, receive the best price possible, and get the transaction funded so you get all cash at closing, please contact me, Bob Dolan, at 888-893-6661 or firstname.lastname@example.org. My LinkedIn profile is: http://www.linkedin.com/in/dolansales. Dolan Sales, Inc. serves customers nationwide.