October 16, 2016

Stock Redemption Strategy When Selling Your Business

Today we’ll discuss a proper stock redemption strategy. A corporate redemption of stock, a purchase of stock can be used to transition stock in the […]
May 18, 2016

Planning for a Liquidity Event

The following synopsis and link provide some great info on exit planning from the perspective of some of the financial planners at Morgan Stanley. The […]
February 25, 2016

Buy-Sell Agreement Structuring: Redemption vs. Cross-Purchase Approach Trade-Offs

When a corporation purchases the stock of a departing shareholder, it’s called a “redemption.” When the other stockholders purchase the stock, it’s called a cross-purchase. […]
April 9, 2014

Compensation Equity Transfers

Suppose Steve and Betty have concluded that it makes sense to start transferring to Dave a larger share of the company’s equity as part of […]
February 17, 2014

M&A: Stock Cross-Purchase Strategy

A cross purchase is similar to redemption with one big twist. The purchaser of the parent’s stock is another shareholder individual, not the corporation. In […]
February 10, 2014

Corporate Stock Transfer Strategies

The plan design for successfully transitioning business wealth from one generation to another usually includes a program for transferring stock to other family members while […]
January 26, 2014

Small Business Transition Timing

Timing is a critical element in the design of any transition plan, especially with family-owned businesses. The temperament and anxieties of the parent can impact […]
January 19, 2014

Exit Planning: Marital Deduction

Smart use of the marital deduction is essential in the design of most exit plans. It’s the tool that eliminates any estate tax bite on […]
January 12, 2014

Dealing with Multiple Family Stockholders

Multiple shareholders make everything tougher. The planning for the business takes on a new dimension as multiple family members in trusts began acquiring stock in […]
January 5, 2014

Life Insurance Structuring for a Business Sale

The transition plan must be coordinated with the parent’s life insurance planning. In many family businesses, life insurance provides essential liquidity to pay death taxes […]