Tag: business transition

Sell or Hold? Many owners start their business with an end goal in mind. They anticipate growing the company over the years with the assumption that, when the time is right, they would sell the company to family, other partners, or to a third party. However, as the years pass and retirement comes closer into [...]

It’s estimated that approximately half of all business sales fall apart during the due diligence phase[1]. This can be demoralizing for a seller that has spent countless resources on positioning the company for sale, polishing the marketing materials, and negotiating the Letter of Intent. The transaction process takes an abrupt turn when the parties enter [...]

Many private-equity transactions are structured as an equity purchase (e.g., stock) rather than as a direct asset purchase. Sellers often prefer an equity sale because they expect to receive preferential capital gains treatment on any resulting gain and typically require a gross-up for any ordinary income tax liability on a deemed asset sale. At the [...]