Business succession and exit planning
Selling a business you spent decades building?
The sale price may arrive in one transaction, but the seller’s income needs can extend through retirement. A structured installment sale may convert an eligible portion of the proceeds into guaranteed future payments.
Separate the price from the payment plan
The parties negotiate the business value and transaction terms. The seller then evaluates how much eligible consideration is needed at closing and how much, if any, should support future income. Asset allocation and eligibility require the seller’s tax and legal advisors.
Reduce dependence on the buyer’s future credit
A traditional seller-financed note depends on the buyer’s continuing ability to pay and may require collection and monitoring. In a structured installment sale, the assigned payment schedule is funded by an annuity from the issuing life insurance company, subject to its claims-paying ability.
Coordinate with succession planning
Payment timing can be evaluated alongside retirement, estate planning and other investments. The structure should complement—not replace—the seller’s broader financial plan.
Bring specialists in early
Business brokers, M&A advisors, CPAs, attorneys and wealth advisors each have a distinct role. Early coordination avoids introducing an installment option after the transaction documents or receipt of proceeds make it unavailable.
Timing matters