A chapter from "The Entrepreneur's Roadmap: From Concept to IPO"
You’ve worked long and hard to build your business. Now it’s time to retire—or perhaps move onto another endeavor.
You’re ready to sell the business; that much is certain. But how to do it is another matter, and it involves a host of decisions and considerations. Some are personal, some are financial. For example:
Are you able to negotiate a lump sum cash payout?
Does the buyer want to make payments that continue over time?
Are you willing to take back a promissory note from the buyer?
Do you want to stay involved in business operations (and does the buyer want you to)?
A key consideration impacting your decision that should not be overlooked is: What are the tax consequences of your exit strategy? While tax implications should not control what you eventually do, they should be a significant factor in how you try to structure the exit transaction. It can make a big dollars-and-cents difference in the amount of money you actually end up with.
In this section, we explore the tax implications of various exit strategies.
>> For more on this topic, download the full chapter: Exiting the Business: What Are the Tax Implications?
Brian Hughes, National Partner in Charge of Private Markets Group and National Venture Capital Coleader
Andy Cherry, Tax Managing Director
Successful entrepreneurs don’t repeat other people’s mistakes. They learn from them. And then they adapt their strategy and roadmap accordingly. But accessing the best advisors, talent and experiences isn’t easy. And if you are a CEO, CFO, Controller or Founder responsible for growing a private company, you may not have the time – or the connections – to get the full picture.
KPMG, in collaboration with the New York Stock Exchange (NYSE) and additional contributors, have developed The Entrepreneur’s Roadmap: From Concept to IPO. This guide is designed to help entrepreneurs by offering critical insights from concept to taking a company public and gain an understanding of both the benefits and challenges through each stage.