Putting All the Ducks in a Row: Advising Clients on Selling a Business

Personal financial planning is driven by three key inputs: * A realistic asset appraisal - Identify what the personal estate looks like and nail down solid estimates of values for those assets. * Lifestyle needs - Figure out what spending habits exist today and what realistic spending expectations are moving into the future. [...]CPAs have the longest, deepest relationship with the seller when compared with other advisers. Discussing the tax impact before inking the deal also helps CPAs negotiate the most advantageous position for their clients. [...]with sufficient time prior to a sale, CPAs can guide their clients to make tax-efficient elections and understand the impact of tax decisions made now on the after-tax proceeds of a future sale. Due diligence generally occurs after the rigorous negotiation phase, so at this point in the process the seller can be worn down. Since due diligence involves a high level of detail and a significant amount of follow-up and information sharing, CPAs can relieve the burden on owners and management during this phase.