What Business Owners Should Review Before a Sale
A checklist of the financial and structural conversations to have well before a letter of intent is signed.
The most successful exits are the ones that were planned years in advance. When a business owner waits until a deal is on the table to begin tax and estate planning, the options available are far narrower than they needed to be.
Start with a clear picture of the after-tax outcome. The headline sale price rarely tells the whole story; federal and state capital gains, depreciation recapture, and the structure of the transaction all shape what you actually keep.
Next, consider the estate. A sale often creates liquidity that can reshape an estate plan — funding trusts, making gifts, or supporting charitable intentions. These moves are most effective when they are designed before the proceeds arrive, not after.
Finally, think about what comes next. The transition of a business is also a transition of identity and routine. A financial plan that accounts for income, reinvestment, and long-term goals gives the proceeds a purpose beyond the closing date.