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Your business may be 80% of your net worth. A planned exit in 3-5 years can double your after-tax proceeds vs. a rushed sale.
2-3x
Planned Exit Premium
Higher valuation vs. rushed sale
20-40%
Tax Savings (Planned)
With proper structuring
3-6x
Avg Business Sale Multiple
Annual profit (SDE/EBITDA)
Types of Exits
| Feature | Typical Multiple | Best For |
|---|---|---|
| Strategic Acquisition | 5-10x EBITDA | Complementary buyer, highest price |
| Private Equity | 4-7x EBITDA | Partial exit, retain equity for 2nd bite |
| Management Buyout | 3-5x EBITDA | Loyal team, seller financing |
| ESOP (Employee Ownership) | 3-5x EBITDA | Tax-deferred, legacy preservation |
| Competitor Purchase | 4-8x EBITDA | Eliminates competition, quick close |
| Liquidation/Close | Asset value only | Last resort — lowest value |
Clean Financials
Separate personal expenses. Get 3 years of audited/reviewed financials. Normalize owner compensation.
Reduce Owner Dependency
Document processes. Hire/promote management. Business must run without you.
Grow Recurring Revenue
Recurring/contract revenue valued 2-3x higher than one-time sales.
Engage Advisors
M&A broker, tax attorney, CPA. Structure the deal for minimum tax.
Go to Market
Confidential listing, multiple bidders. Never negotiate with only one buyer.
QSBS Exclusion
If C-Corp held 5+ years with <$50M assets: exclude up to $10M in capital gains. Tax = $0.
Installment Sale
Spread gain over 5-10 years. Stay in lower tax brackets each year.
Opportunity Zone Reinvestment
Reinvest gains into QOZ fund. Defer and potentially eliminate capital gains.
Charitable Remainder Trust
Donate portion to CRT before sale. Income stream + charitable deduction.
ESOP Tax Deferral
Sell to ESOP, reinvest in securities. Defer all capital gains indefinitely.
Start Tax Planning NOW
Key Takeaways