In this executive summary, Tom Lyons speaks with Amanda Lubeck from Fidelis Advisors, a mergers and acquisitions advisory firm. They discuss the key factors that determine a business’s value, such as the balance sheet, inventory, day-to-day operations, and real estate, all of which have different tax implications. Amanda emphasizes the importance of understanding these factors before selling a business to ensure assets are presented in the most tax-efficient way. She explains the difference between the purchase price and the net cash a seller will walk away with after taxes and debt are accounted for.

She advises that careful planning and having experienced advisors, including a business broker, attorney, CPA, estate planner, and wealth manager, are essential for maximizing value and avoiding potential pitfalls. A knowledgeable team can help prevent unexpected issues and structure the deal for the best possible outcome.