Six Questions You Should Ask Before You Sell

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Preparing for the Transition Milestone

The final milestone stage for a business owner is the Transition Stage. This stage demands that most planning by you as a business owner. It is also the stage that not only has the greatest potential impact on you as the owner, but also your family. The process of preparing for the Transition Stage and the possible impact a transition could have on your family can be overwhelming, that is why it is important to start the planning process well before you decide to sell. This gives you confidence in understanding what your transition strategy, options, and outcome will be before that time comes.

What most business owners do not realize is the timing of your exit is out of your control. If that is the case, not having a transition strategy mapped out ahead of an untimely exit could mean the difference between being able to sell your business or not. As an owner you want to have control over when you want to sell and...

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Is The Sun Setting In 2021 On Current Tax Benefits For Business Exits?

Now that the election is over and President Elect Joe Biden has will be the 46th United States President, there are proposed tax changes that you as a business owner should be aware of. Many advisors are taking a wait and see view on what changes will actually be enacted but we think that you should do your homework and make sure you are prepared.

What are the key points you should know?

  1. If any or all of the proposed tax changes are enacted, they could take effect retroactive January 1st 2021. Now as one of my colleagues, who is a tax attorney shared with me, the last time a tax change that was enacted was retroactive to January 1st was 1993. 
  2. With stimulus soon to increase past $3 trillion and a Debt to GDP deficit of 136%, it is certain that there will be some kind of tax increase needed to pay down debt accumulated over the past 4 years. 
  3. These proposed tax changes can impact your ability to amass wealth and transfer it to your heirs.

What are the key impact of the...

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Leveraging Powerful Tax Savings Strategies: Do You Know About Qualified Small Business Stock


If you thought watching your refund add up on Turbotax was fun, wait until you learn about Qualified Small Business Stock (QSBS). While this regulation—also referred to as Section 1202—has been around since the 1990s, recent updates to its legislation have made it much more attractive to entrepreneurs, investors, as well as some employees. Essentially, QSBS allows shareholders to avoid capital gains tax entirely upon the sale of their shares. This exclusion saves shareholders thousands, in some cases millions, of dollars in taxes.

QSBS can get complicated quickly, so let’s start with some key terms and an example:

  • Cost basis: the original value of an asset for tax purposes, usually the purchase price
  • Capital gains: the positive difference between the sale price of the asset and its original purchase price (cost basis)

In 2012, Paige founds Startup Inc. The company is valued at $2 million and Paige owns 100% of the shares. She pays $0.10/share so her...

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Managing The Key Value Drivers in Your Business

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When running the day to day operations of your business it can be difficult to find time to contemplate the value of your business. The value of your business is called “Enterprise Value” and yes, you can increase that value with proper planning. Many business owners I have interviewed after the sale of their business did not understand the value of their business before the sale or the key components effecting the business value. The owners lack of understanding in these areas negatively impacted the value of their business at sale despite how well the owner thought they managed and ran the business. As you get closer to that day when you start thinking about selling your business it is important to understand how these components can impact your business. You should also have a strategic plan focused on improving these components hence maximizing the “Enterprise Value” of your business.

Value Drivers and Exit...

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Avoiding Seller's Remorse: Don't Be The Business Owner That Is Afraid To Sell

Uncategorized May 07, 2021

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As a business owner, do you ever catch yourself asking the question “What am I going to do after I sell the business”? Finding the answer to that question is something that should be done sooner than later. To be specific, as the owner you should have a Personal Exit Plan at least 2 years before you actually begin to research the process of selling your business. When I share this with owners their response is “this sounds good but why should I take the time and resources to formulate a Personal Exit Plan”? In short my response is, “For peace of mind and the ability to move on after the sale of the business. 73% of business owners have “Sellers Remorse” within twelve months of selling the business which means they have not emotionally moved on from the sale of their business.

In speaking with and interviewing owners who went through the sales process many said they felt some type of remorse. Some of...

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The Countdown To the Sale! Preparing For the Sale

sale preparedness Apr 08, 2021

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In speaking with business owners their is one key insight I share. Incorporating business planning as a daily part of running the business. What do I mean by business planning? Focusing not only on the day to day operations of the business but also building a plan around maximizing the Enterprise Value of the business. It’s an area of focus that all owners should focus on regardless if they are thinking of selling the business or not. The one thing that has been consistent  is that as an owner you never know when someone is going to knock on your door and ask if your business is for sale. I will say that when I speak to an owner that is emphatic about not selling the company, it is always interesting to see how that owner responds when a real potential buyer knocks. Being prepared for that scenario and others that may force the sale of your business is important. As an owner you may not have plans to sell your business but you...

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The Impact Of The Pandemic On Your Trust & Estate Plan

The COVID-19 pandemic combined with the current economic uncertainty may leave many families and individuals with questions and concerns about their estate and financial planning.  The Wealth Preservation team at Porzio has compiled a list of some frequent questions to assist during this time. 

Can I get copies of my estate documents? 

Yes. If you are a Porzio client and don’t have copies of your documents, we retain scanned copies of everything and can securely send them to you or your family.  Please feel free to email or call us for assistance. 

What if my guardian is out of state and unable to get to my kids should the need arise?

New Jersey and New York allow for a “standby guardian” to be named for this specific circumstance.  This is a temporary guardian and can be a local friend.  We can prepare a Designation of Standby Guardian for you and the guardian to sign remotely.

What if I have questions on my documents – or...

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Why Family Offices Work Better For Business Owners After The Sale

succession planning Feb 09, 2021

A number of years ago, John and Ann Williams sold their successful family-owned business and established a single family office to invest the sales proceeds and support their family’s investment, reporting, tax and other needs. They had professionalized the office with strategic investments in staff, including a senior level COO and CFO who reported directly to John. Over the years, the office took on more responsibility, not only for John and Ann’s affairs, but for those of their children and their children’s families as well.

Now that John and Ann are getting ready to retire

they ask for advice on succession planning for leadership of the family office. As a significant portion of the Williams’ family wealth is managed by their single family office, this decision takes on great importance for their family. This article will cover three important considerations to prepare them for this all-important transition.


Selecting the successor


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BXO Can Help You Find The Right Wealth Manager

When selecting a wealth advisor there are several components of the engagement you will want to familiarize yourself with to ensure you have the right wealth advisor
and plan in place. Before discussing the appropriate engagement, it is important to know that on average, 80% of business owners do not have a financial plan. This lack
of financial planning can have a dramatic impact on your transactions net proceeds (what you keep from the transaction after fees and taxes) and the overall result. The
first question you will want to ask yourself is what type of advisor do I want to work with? Finding the right wealth advisor can be very difficult if you don’t have a clear
understanding of what is needed. Due to the change in your financial situation, new elements will add complexity to identifying the right wealth advisor.

Click below to request our whitepaper on identifying the right wealth manager for you. 

Contact us to discuss your preparedness plan: ...

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