Description

The life cycle of the small business can be summed up in three segments: 1) starting the business; 2) operating the business; and 3) getting out of the business. This course focuses on getting out of the business. The most elusive element of owning a small business can be finding the proper exit strategy. This course is designed to provide the business consulting practitioner with tools and concepts to advise the small business owner and assist them in developing the right exit strategy. The course covers exit strategies related to third-party sales and succession planning within a family.

Instructor: Michael Frost, CPA

Target Audience

Practitioners with small business clients that will eventually sell that business to third parties or family members that need advice regarding exiting the business

Course Objectives

Understand the process of selling a business from finding a buyer to completing the sale

Understand how business brokers operate and the fees they charge

Discuss the difference between selling the business and leaving the business: the transition period

Protect the seller’s interest in a seller-financed sale

Understand how estate planning and family succession of a business interact

Understand the use of discounts in transfers of ownership interests to family members

Discuss when to turn over operations while maintaining control of a family business: drawing distributions from the business for retirement and receiving a step-up in basis at death

Understand various structuring options for family business succession

Subjects

How to find unrelated buyers of a business

Maintaining control of the business succession process

Turning over the reins to family members: when to give up control

Finding the right team to sell a business

Options for selling a business to an unrelated party

Options for selling a business to family members

Options for selling a business to employees

Overcoming the emotional attachment to a business

Selling to family members for a life annuity

Using family partnerships and trusts to transfer a business

Prerequisites

A basic understanding of business entity types and taxation of sales of businesses