Clients borrow money from banks for a variety of reasons, one of which is to increase the tax efficiency of a particular transaction. And with increased federal and state tax rates, tax efficiency is an appealing concept to almost everyone.
Whether or not a sale makes sense, the economic recovery that has fueled the growth of many businesses suggests that it’s a good time for business owners to re-examine the value of their business and to revisit — or put in place — a succession plan which may or may not include the prospect of a sale.
If National Estate Planning Awareness Week, which started yesterday, snuck up on you this year, you are not alone. In fact, if you don’t have an estate plan, you have lots of company. Fifty percent of Americans lack a will and other vital estate planning documents, and their absence is a sure path to probate court and often lengthy, costly legal proceedings before an estate is settled.
Surviving the Great Recession wasn’t easy for anyone, but it had a unique impact on business owners who were looking forward to retirement. One-third of small biz owners are over the age of 55 – primed to step away from the day-to-day routine. When the economy went into a tailspin, those trying to either sell or otherwise transition the ownership of their business had to keep working, even as the long slump made staying in business a struggle.