Transition Planning - (Sellers/Second Edition)

WEALTH PRESERVATION
While every business has to pay taxes, a solid tax strategy should help
to pay what’s fair. There are many aspects to consider to prepare a
clients business for transition planning, including:
• Wills
• Trusts & Corporate Structure
• Estate Planning
• Tax Strategies
In many instances, either accountants or lawyers are key proponents of
best practice in this regard and help structure the clients’ tax strategy
–and enabling more revenue toward their bottom line.
“
And if anyone forces you to go one mile,
go with him two miles.
- Matthew 5:41
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MERGERS & ACQUISITION - IT TAKES A TEAM
The lawyers for both sides (buyer and seller) work together and craft
the details of the purchase agreement.
These agreements are very complex and often utilize complex terms
and phrase and it’s a key responsibility to craft a document that think
makes sense, protects the clients interest and not cause the transaction
to collapse.
The lawyer selected must specialize in Mergers & Acquisitions
transactions and will help resolve the following issues:
• Assisting with a transaction strategy;
• Conducting due diligence on legal matters;
• Drawing from previous mid-market M&A transactions, in order to
provide the owner with some comfort and reassurances as to:
o The process that the owner will undergo; and
o What types of problems and concessions are customary in
similar circumstances?
CORE COMPETENCY
The primary role of the lawyer is focused on negotiating the legal terms
of the purchase agreement. Lawyers are worth their weight in gold
providing they are proactive and assist in protecting their clients best
interest and enable a successful outcome.
Lawyers – during the sale process of every transaction, an experienced
M&A lawyer will play a key role in determining and facilitating the key
components of the final Purchase Agreement.
In most cases, it is the buyers’ lawyer who drafts the Purchase
Agreement and it will be weighted in their favour. Selecting a lawyer
who is specializes in Merger and Acquisition services and is aware of
the unique language and aspects of these complicated transactions is
essential.
The lawyer is there to protect the clients best interests and often will
save their client unnecessary taxes and post closing costs.
“
A negotiator should observe everything.
You must be part Sherlock Holmes and
part Sigmund Freud.
- Victor Kiam
“
If you are considering selling your
business with the plan of being out
in 3 to 5 years, the best time to strart
the process is today
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TRANSITION PLANNING GUIDE 13