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Suggestions When Selling a Business to Family Members or Employees

Adam Jorgensen - Monday, April 17, 2017

Like many business owners, you probably have plans to one day transition your business to your children or other trusted professionals. We often hear concerns from frustrated owners who believe that taxes will make that impossible.  Others tell us they wouldn't get a get fair value for their company if they sold it.

Even a business owner, who has created a plan to sell the business to the management team, may learn they don’t have any money!

We use some of the following solutions to alleviate these types of concerns:

  • Ownership Skills Development Plan
  • Sale of Ownership Interest (using cash, seller note or bank financing)
  • Bonus of Ownership Interest
  • Gift of Ownership Interest
  • Non-Qualified Deferred Compensation Plan
  • GRAT (Grantor Retained Annuity Trust)
  • Buy-Back Agreement for Minority Owner

We welcome your questions about these solutions, and are available to discuss with you whether these solutions  would be suitable for your situation. Each business is unique, and we are set apart by our dedication to work alongside owners and board members to develop specific and cohesive strategies that achieve their goals, and most importantly, do what is in the business owner’s best interest.


Veracity Financial Services is a division of Capital Markets IQ, LLC, a SEC registered investment advisor. 

© 2016 Veracity Financial Services, Inc

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Veracity Financial Services, Inc., to provide information on a topic that may be of interest. The opinions expressed and material provided are for general information, and should not be considered personalized investment advice for compensation.