b"competition) are not properly structured, they could take the biggestNow, dont get me wrong: if the multiple that an outside buyer is wallop and leave you with the fewest dollars. This is counterintuitivewilling to pay you is so great it could far outweigh the net proceeds since many times external sales will generate the highest sales price. that an internal sale could provide. Generally, we find the multiple for these sales between two and four. Here again, an exit planner is able to However, with a prospective U.S. tax yield of about 55 per cent orillustrate the various scenarios to provide you with a glimpse of what greater, it could leave you with significantly less than you thought.you can expect during the actual transaction.Remember, it is not how much you get, but how much you keep, that is the bottom line. Kevin J. Kennedy is the Founder and CEO of Beacon Exit Planning Americas Exit Planner and Beacon Mergers and Acquisitions. He is a The interesting thing is that an internal sale to employees, manage- #1 bestselling author, industry voice and thought leader for exit planning ment or family can have a much smaller tax consequence than anand succession. external sale. Sadly, the majority of times these deals are structured in a way that creates more of a tax burden for the business, seller andHe is a co-author of the 2018 Amazon #1 Best Seller The Contractor's the buyer. 60 Minute Exit Plan. He is also a co-author of American Business Awards 2019 Gold Stevie Winner or the Best Business Book of the Year with An The approach Im referring to is the payroll method where a payrollOwners Guide to Exit & Succession Planning.cheque is issued to the buyer, who pays taxes on the income. The buyer then pays the seller who again pays capital gains taxes on the amountsHe bought and sold a non-family company that transferred to the fourth he or she received. Youve effectively double taxed the proceeds of ageneration. During his tenure the team grew the company from 35 to over sale. The results of this process can be alarming. 200 employees into an ENR Top 20 Specialty Contractor that has been in business for over 73 years.An internal sale can be a structured sale, leaving the seller in control of the company until the final payment is made. Kevin Kennedy and Joseph Bazzano will be keynote speakers at the ECAO Annual Conference in Nashville on September 24 to 29, 2019.Furthermore, various strategies can be implemented in order to make the transaction much more tax efficient.FIELD LABELING OFELECTRICAL & MEDICAL EQUIPMENTIntertek is pleased to o\x1fer eld labelling and inspection for both electrical equipment to SPE-1000 and medical electrical equipment to SPE-3000. The ETL mark on our special inspection label tells inspectors, or AHJs, that the product complies with nationally accepted standards and includes a unique serial number that is recorded in your report.TO SCHEDULE A SPECIAL INSPECTION IN ONTARIO1-905-678-7820icenter@intertek.comintertek.com/inspectionsOntario Electrical Contractor11"