King & King Business Advisors is proud to announce that we have been chosen by Leo Vidal Financial Consulting as their exclusive partners for the purposes of bring this exciting new concept to the market.
Bethesda, MD — Working with a local expert, Leo Vidal Financial Consulting, King & King Business Advisors and EquityAccess have teamed to bring business owners an entirely new concept that works like a “Reverse Mortgage” for business owners to unlock the equity value trapped in their businesses.
Additionally, this new “turn-key” program gives business owners and professionals, (physicians, attorneys, dentists, CPA’s, etc.), unprecedented capital gains and income tax benefits. The program is called Equity Access, the selling owner is allowed to exclude the value of the business from his or her income taxes.
“The key is how the sale is funded and structured,” said Mr. Vidal, a former Regional Tax Director with the CPA firm Deloitte & Touche. “My firm will structure and finance the transaction to give the business owner maximum tax benefits, and several other key financial benefits as well.”
For example, Mr. Vidal explained, his firm provides financing which does not require the buyer to borrow any money. In some cases the buyer does not need to have any cash at the closing. “This allows for the sale to young professionals, management team members or relatives who want to buy the business but don’t have either the capital or the borrowing capacity,” said Mr. Vidal. “It opens up an entire new category of potential buyers for business purchases,” he said, “which is really important today when we are having a global credit crunch and banks are getting very strict on loan standards.” He noted that the program is ideal for professionals such as physicians, dentists, CPAs, and lawyers who are looking for someone to purchase their professional practices.
“It’s the best program I’ve ever seen for a business owner to convert business equity into safe and secure tax-free retirement income. It’s also a fantastic way to pass on maximum wealth tax-free to heirs,” Mr. Vidal said.
According to Mr. Vidal, the Equity Access program has the following benefits:
1. Provides financing for a buyer who does not have adequate capital and/or borrowing capacity to purchase the owner’s business. (The seller sets the financing terms).
2. Gives the business owner the ability to set the sales price of the business at the level he or she desires, so long as acceptable to the buyer.
3. Allows for up to 100% tax-free sale of the business equity and value.
4. Provides for tax-free investment interest on the proceeds of the sale which are re-invested in the program.
5. Provides for tax-free retirement income payments (or other withdrawals) to the seller.
6. Protects the value of the business equity from the claims of creditors.
7. Provides for the value of the business to be passed on to heirs income tax-free (sometimes estate tax-free also).
8. Insures the seller against any losses on his or her re-invested equity.
King & King is making available a free consulting analysis and feasibility report for any interested business owner. To learn more about unlocking the trapped equity in your business or how to sell your business tax free, call Jim King at (410) 303-6378, or (888) 565-6468, or email Jim at firstname.lastname@example.org.
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