Shakespeare Wealth Management, LLC

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Selling A Business

Business Succession Planning & Exit Strategy Services

Business Succession Planning & Exit Strategy Services

When you decide to sell your business, you face many questions and challenges: What is my business really worth? How do I structure the sale of the business, from both a legal and financial perspective? What is my tax liability and how do I minimize it? Do I have enough money from the business sale to retire?

We help you create a financial plan that will enable you to maintain your lifestyle after the sale of your business. With 25 years of experience in counseling business owners, and as business owners ourselves, we can help you formulate a practical succession plan for your business.

What is a succession plan for business?

Business succession plans are useful in a number of ways for many small business owners. The first is to answer questions and have a plan of action if there is a sudden death or sever disability of the owner. The second is if business partners no longer get along and they decide to part ways. The last is when the owner is beginning to think about closing their business or selling it to either a family member or other business professional. Essentially it is a plan for any transition of business control or ownership.

The importance of business succession planning

Whether you plan to sell your business to a family member, another business professional, or simply close shop, business succession planning is crucial for the legacy of your business (and your retirement).

  • Simplifies the transition to the new successor of the business
  • Provides guidance to the future leadership of the business
  • Outlines how to manage debt upon sudden death or severe disability of the owner
  • Minimizes tax consequences of any transfers of ownership

General Steps to Developing a Business Succession plan:

 

  1. Choose your Successor
  2. Train your Successor
  3. Set a timeframe for when the plan will be executed
  4. Plan YOUR Retirement
  5. Execute the Succession Plan

The Shakespeare Difference

When you choose to work with Shakespeare during the process of selling your business, you’re not only receiving advice for selling a business, but the future of your well-being long after your business is sold. The team at Shakespeare is always looking out for your best interest on how to provide you peace of mind after a large financial decision is made.

  • Working together: The sale of a business requires the close coordination of your financial advisors. We serve as your “financial quarterback,” coordinating with your CPA, attorney and insurance professional to ensure your business value is maximized. Through collaboration, you win.
  • Fee-Only Advising: Operating as a fiduciary advisor, our Fee-Only Model promises you will always receive pure, honest advice with no influence from commissions or referrals.
  • Local Advising Experts: We live in the same communities as you, are a part of the same Lake Country events, and enjoy the same local cuisines. This makes us more familiar with the overall business landscape and market value the area brings.
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  • Retirement Planning
  • Tax Planning
  • Investment Management
  • Women and Wealth
  • Selling a Business
  • Death Of A Loved One
  • Legacy Planning
  • Career Change
  • College Planning
  • Insurance Preserve & Protect
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Selling a Business FAQ

How far in advance should I plan a business sale in order to maximize value? Expand

A: Begin planning at least 5 years prior to a business sale to maximize value, and preferably from the first day you’re in business. Every decision you make should be in reference to a potential buyer and how they would value the decision.

Most of my assets are tied up in my business, what planning can I do? Expand

A: There are lots of planning opportunities for business owners, if you’re assets are not liquid. These include maximizing retirement plan contributions, taking advantage of all available tax deductions and credits, diversifying your assets when possible, and more. Employing children is a great way for them to learn the business, shift income to a lower tax bracket, and begin saving for college or even retirement.

How would I replace my income if I sell the business? Expand

A: An income replacement plan will utilize the proceeds from your business sale to efficiently create an income stream (synthetic paycheck) to live on. See the income replacement section to learn more.

My business has great cash flow and I’m getting killed with taxes. Help! Expand

A: There are several strategies available to reduce current income taxes. Maximizing retirement accounts with a 401k and Profit Sharing Plan is a nice first step. In addition, a Cash Balance Pension Plan can be utilized with a Profit Sharing Plan to defer up to $250,000+/year. There are several other advanced strategies depending on your entity type, time horizon and business plan. Contact Shakespeare if you would like to learn more.

Should the asset allocation of my investments be impacted by my business ownership? Expand

A: Yes. If a majority of your net-worth is invested in a privately held business, your other assets should likely be invested more conservatively. In addition, you want to refrain from owning investments that perform similarly to your business, ie, don’t own REITs if you are in a real estate intensive business.

How do I best pass on my business to my children? Expand

A: There are several ways to facilitate the transfer of a business to a child. Some of these advanced techniques allow you to discount the value of the business when selling or gifting to family members, while still maintaining control of the business while you’re alive or until you choose to surrender control.

Is there capital gains tax on selling a business? Expand

A: The taxation of a business sale can be extremely complex.  How your business sale is structured will determine how you’ll be taxed and how much you’ll pay in taxes.  There is a big difference between an asset sale, stock sale, and the sale of goodwill.  It’s imperative to include your CPA and attorney in this discussion so we can best craft the sale of your business and maximize value for you and your family.

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  • Insurance Preserve & Protect

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Shakespeare Wealth Management, LLC®

N22 W27847 Edgewater Dr.
Pewaukee, WI 53072
262-814-1600

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