Start your journey to finding out the best exit strategy that fits for you.

Gift and Estate Tax Planning

If you’re planning on gifting your business to a family member when you decide to exit the company, there are some questions you should start asking yourself now.

• Do you have an estate tax plan?
• Do you know if your estate will be taxable?

Right now, the estate tax exemption is $12,060,000 and the highest it has been in recent years. Currently, this higher exemption amount is scheduled to sunset on December 31, 2025, decreasing back to $5,000,000 (adjusted for inflation) for 2026 tax years.

Having an estate tax plan can help ensure your beneficiaries will be able to maintain the wealth you have built. It is a good idea to have a plan in place to make sure your wishes are being honored while the tax implications are minimized.

Exit planning and strategies is a complicated matter and requires specialized knowledge. Make sure you’re working with a trusted team of advisors who can help you with a range of exit planning issues such as business valuation, tax planning, succession planning, as well as the financial reporting side of things.

Our gift and estate tax professionals are standing by to help you. Contact here.

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Tax Structure Considerations

Does your current business structure align with your short term and long-term goals?

It is good practice to periodically revisit your tax structure to make sure that it is the most beneficial for your business. As exit strategies or objectives shift, the tax structure of your business may also require a shift.

With new proposals in Congress constantly being produced, the tax environment can change fast. There are many tax structures your company can use, including C-Corp, S-Corp, limited liability partnerships and corporations, or an employee stock ownership plan (ESOP), all of which have their own unique tax implications.

It’s always a good idea to have a trusted tax advisor to help you navigate these muddy waters.

Exit planning and strategies is a complicated matter and requires specialized knowledge. Make sure you’re working with a trusted team of advisors who can help you with a range of exit planning issues such as business valuation, tax planning, succession planning, as well as the financial reporting side of things.

Our tax structure professionals are standing by to help you. Contact here.

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Business Valuation

A business valuation can be an excellent tool in a variety of situations as it provides an expert’s opinion of the current value of your business and helps you understand the price you could receive when selling the company.

This can help establish the values with the IRS that are used when you are gifting and going through the estate planning process. It can also be an especially valuable tool when you are planning a sale to a related party, or as part of your succession planning, as it establishes an independent value of the business.

Business valuations can also be compared against your post-exit expenses, or what you need to live comfortably post-sale, to identify any gap between the proceeds you expect from the sale versus its current value.

This will give you a solid baseline on which to set business goals before your exit to make sure you achieve your end goal valuation.

Exit planning and strategies is a complicated matter and requires specialized knowledge. Make sure you’re working with a trusted team of advisors who can help you with a range of exit planning issues such as business valuation, tax planning, succession planning, as well as the financial reporting side of things.

Our business valuation professionals are standing by to help you. Contact here.

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Financial Reporting

Whether you’re just starting out, growing your company, or getting ready for your exit, financial reporting should be at the top of your priority list.

A solid financial reporting and close process provides historical information of your company’s operations and growth, as well as serves as an indicator of future performance.

Typically, an outside buyer will want to see 3 to 5 years worth of audited financial statements before a sale transaction takes place. It is always a good idea to hire a trusted team of auditors to assess your financial reporting.

Look at your audit as an investment, not an expense.

Audited financial statements are the “gold standard” for buyers and banks, and can help your company command a higher sales price, shorten your buyer’s due diligence process, or both!

Exit planning and strategies is a complicated matter and requires specialized knowledge. Make sure you’re working with a trusted team of advisors who can help you with a range of exit planning issues such as business valuation, tax planning, succession planning, as well as the financial reporting side of things.

Our financial reporting professionals are standing by to help you. Contact here.

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Financing Options

One of the most difficult stages of the business lifecycle is the growth stage – taking all of your resources and potential resources and knowing when and how to light the fire and keep the flames going.

If you’re having difficulties in your growth phase, sometimes you need some fuel for the fire.

Growth is typically only achieved if you have the appropriate capital to fund it. Capital infusions can come in many forms, whether that is tapping into your personal savings, obtaining a loan from a family or a friend, or obtaining a bank loan or line of credit.

A line of credit is a popular form of financing utilized by manufacturing and distribution companies to fund their inventory purchases and other operational expenses. Purchases are made using the line of credit, and revenue generated from sales is used to pay down the outstanding balance.

While LGT can’t give you a line of credit, we have a wide network of trusted financial institution contacts that we would be happy to connect you with if setting up a line of credit sounds like a good fit for your growing company.

Exit planning and strategies is a complicated matter and requires specialized knowledge. Make sure you’re working with a trusted team of advisors who can help you with a range of exit planning issues such as business valuation, tax planning, succession planning, as well as the financial reporting side of things.

Our knowledgeable professionals are standing by to help you. Contact here.

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Succession Planning

While exit planning focuses on transferring the wealth of a business, succession planning focuses on transferring the leadership of a company.

While the two concepts are different, they typically go hand in hand.

If you decide to sell your company in the future, you want to make sure you have the right people in place to continue the business. However, succession planning is still important even if you don’t plan to sell your company.

Succession planning is an essential step in building a self-sustaining business and training and developing your personnel to handle the day-to-day activities.

A succession plan identifies who is next in line to take over key operations and leadership positions when a business owner reaches a natural time to retire or exit the business and ensures that person or team has the right tools to continue the business.

Exit planning and strategies is a complicated matter and requires specialized knowledge. Make sure you’re working with a trusted team of advisors who can help you with a range of exit planning issues such as business valuation, tax planning, succession planning, as well as the financial reporting side of things.

Our succession planning professionals are standing by to help you. Contact here.

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