Sale of Business

Challenge: How to derive the most value and minimize taxes when selling a business

A single woman age 47 is contemplating selling her business to her 38-year-old niece. The niece has been working for the company for 12 years. The owner isn’t certain, but estimates she will need $15 million after taxes to accomplish everything she wants to do in life. She is uncertain about how to plan for the future.

Investor’s Concerns

The business owner is referred to Cornerstone. Through an initial assessment, Cornerstone identifies three primary concerns:

  1. Health complications. She has a genetic disease and is expected to live only 10 more years
  2. She wants to minimize taxes on both the sale of her business and on her estate
  3. She intends to pass her estate to her heirs: three nieces and a nephew

Strategy and Solution

Cornerstone assembles a team of professionals to help her achieve these goals, including:

  1. A CPA with expertise in succession planning
  2. A transactional attorney specializing in the sale of businesses
  3. An advanced estate planning attorney who can set up a Charitable Remainder Trust (CRT). This will minimize income taxes on the sale of the business as well as provide strategies to minimize estate taxes upon her death
  4. A business valuation expert to help determine the fair market value of the business
  5. A banker to help with the funding of the transaction
  6. Cornerstone’s guidance in determining how much money she will need from the sale in order to meet all of her financial desires


In addition to assembling and overseeing advisors who help her achieve a successful plan, Cornerstone continues to guide her investment portfolio, before, during, and after the sale is consummated.

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Disclaimer: Information provided is for illustrative purposes only and should not be considered investment advice. The information provided is hypothetical in nature, does not reflect actual investment results, and is not a guarantee of future results. No reliance should be placed on any such information when making an investment decision. Nothing herein is intended as an endorsement by any person of Cornerstone nor should the information be construed as a statement of a typical client’s experience with Cornerstone. No guarantee of investment performance is being provided and no inference to the contrary should be made.