© Grant Thornton LLP. All rights reserved.
www.fa-mag.com www.pw-mag.com
1
Presented by
© Grant Thornton LLP. All rights reserved.
Getting Rich
How Business Owners Can Maximize Their
Personal Wealth When They S...
© Grant Thornton LLP. All rights reserved.
Three Actions that Enable Business Owners to
Maximize Personal Wealth on the Sa...
© Grant Thornton LLP. All rights reserved.
Actions that produce greater family wealth
Presented by 4
© Grant Thornton LLP. All rights reserved.
Research Study
Evaluate the extent to which business owners are engaging in
bes...
© Grant Thornton LLP. All rights reserved.
Segments
Presented by 6
© Grant Thornton LLP. All rights reserved.
Age of the senior executive
Presented by 7
© Grant Thornton LLP. All rights reserved.
Timing of sale
Presented by 8
© Grant Thornton LLP. All rights reserved.
Business types
Presented by 9
© Grant Thornton LLP. All rights reserved.
Average annual sales
Presented by 10
© Grant Thornton LLP. All rights reserved.
Goals When Selling the Business
• Getting the best price
• Desire to become wea...
© Grant Thornton LLP. All rights reserved.
Getting the best price
Presented by 12
© Grant Thornton LLP. All rights reserved.
Desire to become wealthier
Presented by 13
© Grant Thornton LLP. All rights reserved.
Financial care of loved ones
Presented by 14
© Grant Thornton LLP. All rights reserved.
Legally minimizing tax owed on the sale
Presented by 15
© Grant Thornton LLP. All rights reserved.
Best Practices
Preparing the Business for Sale
Opportunities to increase the se...
© Grant Thornton LLP. All rights reserved.
Presale corporate actions
Presented by 17
© Grant Thornton LLP. All rights reserved.
Best Practices
Maximizing value through tax planning
Opportunities to increase ...
© Grant Thornton LLP. All rights reserved.
Best Practices
Maximizing value through tax planning
Opportunities to increase ...
© Grant Thornton LLP. All rights reserved.
Using partnerships or trusts to lower estate taxes on
the sale of the business
...
© Grant Thornton LLP. All rights reserved.
Using charitable trusts or corporate structures to
lower taxes on the sale of t...
© Grant Thornton LLP. All rights reserved.
Best Practices
Negotiating
Opportunities to get a preferential deal when sellin...
© Grant Thornton LLP. All rights reserved.
A win-win negotiation strategy is the best approach
to selling a business
Prese...
© Grant Thornton LLP. All rights reserved.
It's critical to develop a deep understanding of the
people on the other side o...
© Grant Thornton LLP. All rights reserved.
Where Business Owners Turn to For Advice
Critical to being able to provide busi...
© Grant Thornton LLP. All rights reserved.
Sources of advice
Presented by 26
© Grant Thornton LLP. All rights reserved.
Key Implications
• Business owners generally want to maximize the personal
weal...
© Grant Thornton LLP. All rights reserved.
Presenters
Carlos Ferreira
Transaction Advisory Services Practice Leader - Metr...
© Grant Thornton LLP. All rights reserved.
Report to CIMA®/CIMC®/CPWA:
If you hold the CIMA®, CIMC® or CPWA® certification...
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Getting Rich: How Business Owners Can Maximize Their Personal Wealth When They Sell Their Business

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These are the slides from a webinar that was hosted by Grant Thornton and Private Wealth. The presenters were Carlos Ferreira, Russ Alan Prince, and Andy Tarquinio. Their contact information is on the second to last slide

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Getting Rich: How Business Owners Can Maximize Their Personal Wealth When They Sell Their Business

  1. 1. © Grant Thornton LLP. All rights reserved. www.fa-mag.com www.pw-mag.com 1 Presented by
  2. 2. © Grant Thornton LLP. All rights reserved. Getting Rich How Business Owners Can Maximize Their Personal Wealth When They Sell Their Business September 17th | 2:00-3:30 p.m. EDT Carlos Ferreira Transaction Advisory Services Practice Leader - Metro New York Cluster Grant Thornton LLP Russ Alan Prince President R.A. Prince and Associates, Inc. Andy Tarquinio Tax Partner and Melville Office Tax Leader Grant Thornton LLP Presented by 2
  3. 3. © Grant Thornton LLP. All rights reserved. Three Actions that Enable Business Owners to Maximize Personal Wealth on the Sale of Their Businesses Pre-sale planning • Corporate (Business) Preparation • Business and Family Wealth Tax Planning During the sales process • Skilled Negotiations Presented by 3
  4. 4. © Grant Thornton LLP. All rights reserved. Actions that produce greater family wealth Presented by 4
  5. 5. © Grant Thornton LLP. All rights reserved. Research Study Evaluate the extent to which business owners are engaging in best practices when they sell their companies 271 business owners were surveyed Criteria: • All were privately owned companies • All were senior executives • All had a financial stake in the sale of the company • All would likely sell their companies some time in the future Presented by 5
  6. 6. © Grant Thornton LLP. All rights reserved. Segments Presented by 6
  7. 7. © Grant Thornton LLP. All rights reserved. Age of the senior executive Presented by 7
  8. 8. © Grant Thornton LLP. All rights reserved. Timing of sale Presented by 8
  9. 9. © Grant Thornton LLP. All rights reserved. Business types Presented by 9
  10. 10. © Grant Thornton LLP. All rights reserved. Average annual sales Presented by 10
  11. 11. © Grant Thornton LLP. All rights reserved. Goals When Selling the Business • Getting the best price • Desire to become wealthier • Making sure loved ones are financially cared for • Legally minimizing taxes owed on the sale Presented by 11
  12. 12. © Grant Thornton LLP. All rights reserved. Getting the best price Presented by 12
  13. 13. © Grant Thornton LLP. All rights reserved. Desire to become wealthier Presented by 13
  14. 14. © Grant Thornton LLP. All rights reserved. Financial care of loved ones Presented by 14
  15. 15. © Grant Thornton LLP. All rights reserved. Legally minimizing tax owed on the sale Presented by 15
  16. 16. © Grant Thornton LLP. All rights reserved. Best Practices Preparing the Business for Sale Opportunities to increase the selling price of the business • Up-to-date valuation • Succession plan • Incentive compensation plan • Financial statements that effectively communicate the value of the company Presented by 16
  17. 17. © Grant Thornton LLP. All rights reserved. Presale corporate actions Presented by 17
  18. 18. © Grant Thornton LLP. All rights reserved. Best Practices Maximizing value through tax planning Opportunities to increase the net after-tax proceeds on the sale of the business • Obtain an understanding of the relative importance that tax structure plays in conveying and maximizing value during the sales process • Organizing the company's legal affairs in order to support an asset sale • Pre-sale restructuring to separate unwanted assets not used in the business or retained for other purposes • Pre-sale estate and gift tax planning • Implementation of incentive compensation plans to reward and retain key employees • Maximizing the value of tax attributes and transaction related expenses incurred in connection with the sale Presented by 18
  19. 19. © Grant Thornton LLP. All rights reserved. Best Practices Maximizing value through tax planning Opportunities to increase the monies to the family from the sale of the business • Using partnerships and trusts to lower estate taxes • Using charitable trusts to lower the taxes owed on the sale of the business Presented by 19
  20. 20. © Grant Thornton LLP. All rights reserved. Using partnerships or trusts to lower estate taxes on the sale of the business Presented by 20
  21. 21. © Grant Thornton LLP. All rights reserved. Using charitable trusts or corporate structures to lower taxes on the sale of the business Presented by 21
  22. 22. © Grant Thornton LLP. All rights reserved. Best Practices Negotiating Opportunities to get a preferential deal when selling the business • Negotiating to win! • Understand the motivations and limitations of the people on the other side of the table Presented by 22
  23. 23. © Grant Thornton LLP. All rights reserved. A win-win negotiation strategy is the best approach to selling a business Presented by 23
  24. 24. © Grant Thornton LLP. All rights reserved. It's critical to develop a deep understanding of the people on the other side of the table when selling a company Presented by 24
  25. 25. © Grant Thornton LLP. All rights reserved. Where Business Owners Turn to For Advice Critical to being able to provide business owners your services is reaching them Referrals tend to be exceedingly important • Centers of influence • Other business owners Presented by 25
  26. 26. © Grant Thornton LLP. All rights reserved. Sources of advice Presented by 26
  27. 27. © Grant Thornton LLP. All rights reserved. Key Implications • Business owners generally want to maximize the personal wealth from the sale of their companies • There are 3 ways they (their families) better accomplish this: – Corporate preparation – Business and Family Wealth Tax Planning – Effective negotiations • While some business owners are taking appropriate actions, many are not. – Significant opportunities for these business owners to take action and increase their family’s wealth from the sale of the company Presented by 27
  28. 28. © Grant Thornton LLP. All rights reserved. Presenters Carlos Ferreira Transaction Advisory Services Practice Leader - Metro New York Cluster Grant Thornton LLP T 212-542 9825 M 973 641 6171 Email: carlos.gerreira@us.gt.com Russ Alan Prince President R.A. Prince and Associates, Inc. T 203-938-5557 Email: princeasoc@aol.com Andy Tarquinio Tax Partner and Melville Office Tax Leader Grant Thornton LLP T 212-542-9720 M 631-836-1364 Email: andy.tarquinio@us.gt.com Presented by
  29. 29. © Grant Thornton LLP. All rights reserved. Report to CIMA®/CIMC®/CPWA: If you hold the CIMA®, CIMC® or CPWA® certification, you may report this pre-accepted CE program online by logging into your My IMCA account at www.imca.org/user. Detailed reporting instructions can be found at http://www.imca.org/pages/onlinereporting. CE Sponsor Name: Financial Advisor Magazine Customer ID: 113555 Course Title: Getting Rich: How Business Owners Can Maximize Their Personal Wealth When They Sell Their Business Course ID: 13FAM014 This is a live event only. No recording of this presentation will be available For upcoming webinars, please visit http://www.fa-mag.com/webcasts.html Please send your questions, comments and feedback to: dzarcaro@fa-mag.com. CE Credits CIMA® CE Credit Presented by 29

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