• ESOPs can provide a partial liquidity or a complete exit.

• They are great acquisition tools.

• ESOPs can provide tax savings and affordable financing options.

• 7 year amortization for business loans

• Debt-service coverage ratios

• Loan payments + wiggle room + owner's income

• Most US business sales are asset sales.

• What's good for the buyer is bad for the seller, and vice versa.

• Pre sale tax planning will determine how much of the proceeds you get to keep.

• The best parts of a tax return for non tax pros

• Anyone can spot patterns.

• Your deal team should be deal facilitators-not deal breakers.

• The Balance Sheet shows a snapshot of your company at one point in time.

• BS accounts never start over. They have a life just as long as the company itself.

• A negative Retained Earnings doesn't always indicate a bad biz.

• Sample BS provided.

• 60% or more of all business sales involve at least some seller financing

• An installment sale can be good for both sides of the deal

• Beware if your business is equipment heavy

Add-backs and their implications can have a huge impact on your business
Add-backs can go both ways, increasing or decreasing value
Doubt=Risk=Lower Valuation
IRS hates hobbies

Step 1 Calculate your business value.
5 years of tax returns
Calculate weighted average of EBITDA
Multiply by 2 and 4

Only 20% of all businesses end up selling.

72% of business owners don’t have an exit plan of any kind

Calculate your business value.

ROB(s) Your 401K to Buy or Build a Business and Get Away with It!

-Use your 401k to buy a business

-It's NOT an all or none decision

-Another option is the Self Directed IRA

ROB(s) Your 401K to Buy or Build a Business and Get Away with It!

C Corporations only

You may or may not be able to keep your old job
No hands-off ownership allowed

ROB(s) Your 401K to Buy or Build a Business and Get Away with It!

Roll Over Business Startup (ROBS)
The Fairy Tale and the Nightmare
And how to have a happy ending