JPAbusiness

I recently read a blog post about the pros and cons of seller earnouts, which I believe is worth sharing.

The blog post was written by M&A specialist Dave Kauppi from MidMarket Capital, Inc, which is based in Chicago, USA. (You can click here to read Dave’s post.)

It’s a useful article if you’re considering buying or selling a business and you want to explore measures to manage the risks of transfer and protect the value of the business, including delayed or ‘at risk’ payment of part of the purchase price consideration, such as an earnouts.

The following blog is an excerpt from our updated CGT eBook, Capital Gains Tax 2.0 – Issues to consider when selling your business.

With the Federal Budget being handed down this week, it is worth remembering that the tax and financial policy environment can change, so be sure to check with your advisor regularly for updates.

Small Business Capital Gains Tax (CGT) Concessions can provide generous and attractive concessions for small business, and the structure of your sale transaction may impact whether or not you qualify for the concessions.

However, you must obtain advice from a CGT specialist to ensure the structure you choose is not deemed to be tax avoidance. Remember, tax minimisation is legal – tax avoidance is not.

The following blog is an excerpt from our updated CGT eBook, Capital Gains Tax 2.0 – Issues to consider when selling your business.

In 2014 we published an eBook titled Capital Gains Tax – Issues to consider when selling a small to mid-sized business. This eBook drew on extensive experience, including that of our guest contributor Michael Pisani, partner at Chapman Eastway, and remains one of our most popular publications to date.

Given the far-reaching scope of Capital Gains Tax (CGT) and the ever-evolving nature of taxation laws, we have decided the time is right to release Capital Gains Tax 2.0 – Issues to consider when selling your business. The new eBook does not replace the original, but instead complements it.

Tax considerations – particularly Capital Gains Tax (CGT) – are very important for anyone considering changing their business structure, divesting or selling part or all of a business as a result of retirement, change of career, succession planning, etc.

In this situation it’s wise to seek your tax advisor’s assistance in looking at the options associated with a business sale.