In this episode of the Growth & Exit Digest, Mike Levison highlights the significance of tax planning in successfully executing a business exit. He emphasizes the difference between short-term versus long-term capital gains tax and how asset holding duration can aid in reducing the tax burden. Further, he discusses the tax implications of different sale structures, namely, asset sale and stock sale. Mike provides insight on how sellers can leverage transaction costs, net operating losses, and installment sales to minimize tax liabilities while he also touches upon advanced tax strategies including installment sales, charitable remainder trusts, and Qualified Small Business Stock Exclusion. Lastly, he underscores the centrality of considering wealth and estate concerns post-sale and aligning them with long-term financial goals, urging sellers to involve a wealth management professional in the process. It’s not just about finding a buyer, but also about protecting wealth through tax-efficient strategies. He encourages listeners planning a business sale to check the show notes for a link to get their Value Builder Score.
