Deal Notes - Registered Logo

Tax Minimization Strategies

On this day when personal income tax filings are due, we thought we would share a comment about lessons we have learned over the past 22 years relating to taxes on the sale of companies.

Too often we have clients ask us to take them to market without long before making plans with their legal and accounting professionals to minimize their taxes on the sale.  And while there are some strategies available to sellers that can be effectuated on short notice, the majority of meaningful tax minimization strategies require significant advance planning to become effective upon the sale of their business.  Some of these strategies may take years to fully vest.

A sample of strategies to minimize federal capital gains taxes include: structural conversions, generational gifting, and price allocation shifting.  Depending on the jurisdictions involved, there also may be strategies available to minimize certain state and local taxes imposed on the sale.

If you are considering selling your middle market aerospace and defense industry company, we encourage you to speak with experienced tax accountants and attorneys long before you intend to sell. This will ensure that you are taking advantage of all available strategies to minimize your tax obligations when you sell your business.

Have a great day everyone!

Bill Alderman