Business owners preparing for a sale but still needing to execute their estate plan may see beneficial opportunities in using a common estate planning tool.
Allocating a portion of proceeds from the sale of assets of a private company to the personal goodwill of a major shareholder can result in significant tax benefits to buyer and seller.
Mellen notes, “Considering the current level of M&A activity, I’ve seen a marked increase in demand for valuations of shares of privately held companies…”
Considering a business transaction in Canada? A variety of valuation-related issues are relevant to your decision-making process.
Q&A: How is the Tax Cuts and Jobs Act impacting company value and valuation approaches?
What did the 2017 Tax Act change that would impact estate planning?