Thursday, October 25, 2018

seminar on company exit strategies

I rushed into Tysons Corner to attend a seminar on company exit strategies, especially What CEOs and CFOs Need to Know (and Do), sponsored by a business consulting firm, a law firm and a financial firm. 2/3 of company exits via private equity in 2018 so far. They suggested preparing for company sale: at least two years prior to selling a company, such as moving primary residence to a no income-tax state (e.g., Florida), using non-taxable benefits (e.g., equity appreciation rights, phantom stocks, etc.) to retain key-personals via the sale, asset sales instead of stock sale (unless government contact companies), appraising high value for goodwill for the buyer to amortize 15 years, getting buyer insurance cost @ 1-2% sale value instead of seller indemnification, etc.





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