SELL A BUSINESS - DEAL STRUCTURE AND TAXES

The purpose of this article is to demonstrate the importance ofthe tax impact in the sale of your business. As an M&Aintermediary and member of the IBBA, International BusinessBrokers Association, we recognize our responsibility torecommend that our clients use attorneys and tax accountants forindependent advice on transactions.As a general rule, buyers of businesses have already completedseveral transactions. They have a process and are surrounded bya team of experienced mergers and acquisitions professionals.Sellers on the other hand, sell a business only one time. Their&;team consists of their outside counsel who does generalbusiness law and their accountant who does their books and taxfilings. It is important to note that the sellers team may havelittle or no experience in a business sale transaction.Another general rule is that a deal structure that favors abuyer from the tax perspective normally is detrimental to thesellers tax situation and vice v...