Selling Your Business for $10M—What Do You Actually Keep?
A $10 million business sale does not mean $10 million in your pocket. Before you focus on the price, understand what happens to the money—and what happens to your life after the deal.
Show notes
You sell your business for $10 million. Then fees, expenses and taxes hit — and suddenly you’re looking at $5.5 million. That’s why a successful exit isn’t just about the sale price. It’s about what you actually keep.
In this episode of the Prestige Perspective, Mark Clark, CFP® sits down with Will Rodriguez, CPA of Vision Point Capital to talk about what business owners should be thinking about before a sale or transition is on the table. From valuation and family succession to ESOPs and tax planning, the biggest advantage may simply be giving yourself enough time to understand your options.
In this Episode:
- Why exit planning should start years before you’re ready to sell — not when a buyer shows up
- The “two-week vacation test”: can your business operate without you?
- Why the succession plan you expect — including passing the company to Gen 2 — may look completely different once you dig into the details
- Business value vs. sale price, and why knowing what your company is actually worth gives you leverage when an offer comes in
- EBITDA, capital expenditures and working capital — and why one headline number rarely tells the whole story
- The difference between selling to family, management, an outside buyer or an Employee * Stock Ownership Plan (ESOP)
- How partial ESOP transactions can let owners take some chips off the table while retaining control
- Section 1042 and the potential to defer capital gains in certain ESOP transactions
- Why Will generally starts the ESOP conversation around 20–25 employees and roughly $500,000–$750,000 in EBITDA on the smaller end
- The feasibility study: a way to explore valuation, ESOPs and other exit options before committing to a transaction
- The question owners often forget to ask: What do you actually want your life to look like after the sale?
Have a question, thought, or just want to learn more? Email us at hello@prestigeadvisors360.com or schedule a free conversation with us today!
— — —
Disclaimer: This content is for educational and informational purposes only and does not constitute tax, legal, investment, or financial advice. Prestige Perspective is a general discussion of concepts and strategies that may not be suitable for your specific situation. Tax laws and regulations change and apply differently to each individual, and nothing here should be relied upon as a recommendation. Past results do not guarantee future outcomes. Consult a qualified tax, legal, or financial professional before acting on anything discussed. Prestige Advisors, Inc.