Selling a privately held business is often Job Function Email List romanticized as face-to-face negotiations over business valuations and purchase price. Whether small or large Job Function Email List, business transactions can be extremely complex and require a great deal of work behind the scenes. As the size and/or complexity of a transaction increases, Job Function Email List the need for innovative structuring options also increases. Deal Job Function Email List structure, financing, and tax management must be a proactive process that is addressed at an early stage.
In many cases the Seller and Buyer Job Function Email List often place all of the focus on the transaction price at the expense of the 'net results' of a business transaction. By Job Function Email List carefully negotiating the terms and structure of the transaction, a business seller could walk away with a deal that provides a significantly larger economic Job Function Email List benefit than a transaction that provides 100% of the proceeds at closing. For asset sale transactions, the 'allocation of purchase price' can become another area of negotiation after the price, terms and conditions of the Job Function Email List sale have been agreed to by the buyer and seller.
Each type of structure carries Job Function Email List with it different tax consequences for the buyer and seller, having a material impact on the overall value of the transaction. The type of business entity owned by the seller (C-corporation, S-Corporation, LLC, Partnership, or Sole Proprietorship) Job Function Email List in addition to whether the transaction becomes an asset sale or stock sale will have a major bearing on the decisions made in structuring the transaction to afford maximum economic benefits. The purpose of this communication is to advance a few of the Job Function Email List techniques available in structuring small business sale transactions and to emphasize the value an experienced team brings in structuring the transaction.