#business-exit
Exit strategies and planning for business owners preparing to sell, retire, or transition
Only 23% of family farms have a succession plan. Transfer management first, use LLC interests plus IRS Sections 2032A and 6166, and keep the farm intact.
Yes — with lender approval. Pay off your SBA loan from sale proceeds, negotiate a short sale, or transfer it via buyer assumption.
A bare-number working capital peg lets the buyer restate your closing sheet under GAAP and bill you the gap — demand symmetric methods in the agreement.
SBA SOP 50 10 8.1 raises acquisition DSCR to 1.25x on historical cash flow, mandates QoE at $3M+, and caps minority equity—effective October 1, 2026.
South Dakota HB 1180 voids ownership-transfer non-competes past three years from July 1, 2026 — rewrite duration, scope and geography before closing.
Lump-sum investing beat 12-month dollar-cost averaging about two-thirds of the time — but set aside the US capital gains reserve before deploying a dollar.
An IRS Section 453 installment sale spreads the gain across your retirement, while $19,000 annual gifts and 20-40% valuation discounts move value tax-free.
To close a 401(k) when selling or shutting down: board resolution, full vesting, distribute within 12 months, file a final Form 5500.
US law bars non-CPAs from owning an attest practice, so every CPA-firm PE deal splits in two — and only 30–50% of the headline price is cash at close.
Section 721 defers tax on the ~20% sellers roll into a PE buyout — but junior securities, leverage, and weak minority rights can erase the second bite.
Canada cancelled the two-thirds capital gains inclusion rate on March 21, 2025, but kept the $1.25M lifetime exemption — roughly $1,275,000 indexed for 2026. Here are the QSBC tests, CCA recapture, and 45(2)/45(3) elections that decide your bill.
A life settlement payout splits into three slices — basis tax-free, gain up to cash surrender value as ordinary income, the rest as capital gain. Here is how a business reports it, plus Forms 1099-LS, 1099-SB, 8925 and Section 101(j).
