Home / Tax Planning / Your Exit Plan, Your Employees and Your Tax Team

Your Exit Plan, Your Employees and Your Tax Team

Dec 15, 2016 | Tax Planning

exit-plan “Everyone lives by selling something.” – Robert Louis Stevenson

Last week, we discussed sensible exit strategies when selling your business to key employees.

We established that it can be a safe, solid move, and that Brinen & Associates has deep experience in this scenario. While we focused on legal planning in the prior installment, let’s look at two other separate roles that I am qualified to assume: The tax advisor and the certified public accountant (CPA).  

A CPA works in tandem with the legal counsel in setting exit objectives and advising you on their practicality. It’s their job to collaborate with the tax advisor and the legal counsel and determine the value of the business. This analysis includes:

  • Providing periodic and ongoing valuation services
  • Providing cash flow projections
  • Discussing methods to maximize the company’s value

At the time of sale is also a fine time to review projections of the business in a post-ownership scenario. The CPA may have a completely different, yet insightful, opinion of the key employees you’ve groomed for ownership.

You typically should not second-guess yourself at this stage, but if your CPA is someone you completely trust and is screaming “red flag,” you should listen.

Wealth Preservation

Limiting tax exposure is just one way to align your business needs with your personal exit goals. Your tax advisor should provide a list of tax consequences for your sale, and it’s important to note that each type of company is subject to different types of taxes. Whether yours is a C-Corp or an S-Corp, the advisor should know your situation inside and out and address many of your “what ifs.”

Perhaps most importantly, the tax advisor should help you determine whether your financial needs and exit objectives can be satisfied by the net sale proceeds.

Someone approaching retirement will have different objectives than that of someone who has taken the business as far as possible and wants to move on. However, when it comes to the numbers, the sale price needs to be affordable enough for your employees to purchase the business but high enough for you to be able to continue living within your means.  

Transferring ownership to your key employees is a pragmatic way to ensure that your business will be in good hands while also maximizing your price point. Contact us to discuss the best options when considering a sale.


Forming Your Company

Financing Your Company

Operating Your Company

Growing Your Company

Defending Your Company


Transactional and Corporate Law

Mergers and Acquisitions


I formerly worked as a satellite employee from my home state of New Jersey. I ended my employment with my former employer in 2016. In 2018, I was sued by my former employer for $1.1 million in Illinois State Court. I was referred to Brinen & Associates, LLC by a friend who is a client of the firm. Brinen & Associates, LLC came highly recommended. I contacted Joshua Brinen and then had a consultation at his office with his colleague Mark White. Together, Messrs. Brinen and White explained my options...

Read More