What sellers often miss
Many owners assume tax planning only affects accountants and attorneys. In reality, tax provisions can influence the economics of a transaction just as directly as valuation adjustments. If a buyer is requesting a specific structure, election, or tax treatment, there is usually a financial reason behind that request. Understanding that reason may uncover opportunities to negotiate additional value.
The takeaway
Whenever a proposed transaction structure creates a tax benefit, ask three simple questions: Who receives the benefit? How much is it worth? Has that value been considered in the negotiation? Sellers who consistently ask those questions tend to achieve stronger outcomes than those who focus exclusively on the headline purchase price.
Terms this chapter uses
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