Avionics News July 2018 - 65

future growth of your company, while also taking
of a business may be subject to less scrutiny by
some chips off the table.
tax authorities if it occurs separate from a sale
Management buyouts appeal to business owners
transaction. Pursuit of philanthropic goals and
who want to retire and wish to reward their
creating their respective entities may also be
management teams with the
established prior to a transaction
opportunity to become owners
and implemented afterward.
of the company. MBOs allow
Each wealth planning strategy
SELLING A BUSINESS
the management team to
requires the coordination of
continue running the business
financial advisors, legal counsel,
INCORPORATES NOT
and to reap the financial
accounting professionals and
ONLY DEAL TERMS
rewards from the future success
adequate preparation time.
AND THE EXTENT
of the business. Regardless
Successful business owners
OF THE BUSINESS
of your approach, you should
understand that selling their
OWNER'S ONGOING
choose a partner that listens to
business does not end their
INVOLVEMENT, BUT ALSO
what you want your world to
business career, but is only the
DRAWS
IN
PERSONAL
look like after the sale and will
beginning of the next chapter.
TAX IMPLICATIONS,
help you achieve your goals.
Many find they are not ready to
Selling a business
retire and may set their sights
FAMILY HEALTH
incorporates not only deal
on new endeavors, which could
INSURANCE NEEDS,
terms and the extent of the
include continued involvement in
ESTATE PLANNING
business owner's ongoing
their "old" business, another forCONSIDERATIONS AND,
involvement, but also draws
profit business or philanthropic
OF COURSE, PORTFOLIO
in personal tax implications,
causes. Regardless of the postMANAGEMENT OF
family health insurance needs,
sale pursuit, the "old business"
SALE
PROCEEDS
FOR
estate planning considerations
has been transformed into a
ONGOING
INCOME.
and, of course, portfolio
new, well-capitalized business:
management of sale proceeds
an investment portfolio. Similar
for ongoing income. Each
to all businesses, the business
of these aspects requires outside professional,
of portfolio management needs to provide taxobjective advice and a sufficient time horizon for
efficient income and economic security to the
optimal impact.
entrepreneur and their family. Not unlike employing
Generally speaking, owners should revisit
a highly competent chief financial officer, engaging
their wealth plan (or begin one) in the context
a top-tier, well-credentialed financial advisor is
of a potential business sale at least nine months
an important step to navigating the intricacies of
ahead of entering a transaction. How an owner
portfolio management. Recognizing that wealth
views their wealth and in what amounts that
planning is a business in and of itself, and that it
wealth transfers to future generations are complex
requires professional guidance and education, will
issues. Wealth planning strategies such as
allow the successful business owner to remain
gifting, establishing trusts or transferring shares
successful. q
avionics news

july

2018

Table of Contents for the Digital Edition of Avionics News July 2018