Pasted below you will find an article written by Leo Vidal, JD, MA, CPA regarding the EquityAccess program:
By: Leo J. Vidal, JD, MA, CPA
What are the biggest obstacles to closing the sale of your medical practice? In my experience it comes down to not just price but finding a buyer willing and able to pay what you want to receive in the sale. Related to this is the buyer’s ability to come up with the capital and financing needed to make the purchase at the price you want. (This is especially difficult for young professionals burdened with debt from student loans, buying a home, etc.)
The EquityAccess program solves these problems and others that arise when trying to sell a medical practice. EquityAccess provides medical professionals a potentially tax-free sale of their practices. Once the EquityAccess program is put in place, finding a buyer and closing the sale are almost foregone conclusions.
Top Three Problems the EquityAccess program solves for medical practices:
1. Security: replaces an installment sale of the medical practice with a secure asset for retirement and estate planning.
2. Ownership transition: provides economic efficiencies in transitioning practice ownership which insures the highest possible after-tax proceeds from the sale.
3. Easy Financing: provides financing for practice ownership transitions without limiting the buyer’s ability to finance ongoing working capital needs, nor requiring large amounts of capital upfront.
Monetizing the value of the medical practice
EquityAccess is a way for medical practitioner to monetize the value of the practice, i.e., to turn a non-liquid asset into money. This money can then be used to provide a secure financial future for the business owner and his or her family. It can provide securitized tax-free retirement income as well as achieve all of the professional’s estate planning objectives.
The unique features of EquityAccess include:
1. Superior turn-key lending terms, put in place before the sale
2. Customized tax planning, leading to potentially a tax-free sale
3. Customized retirement planning, including tax-free income for life
4. Customized estate planning, with maximum after-tax wealth transfer
5. Efficient access to business equity to achieve succession planning
Keep checking back on this blog for follow up information on this exciting program such as:
Financing the sale
Summary of benefits of EquityAccess
Finding a buyer is easy
Setting the purchase price
Interest-Only loan need never be repaid
No business personal assets are used as collateral
Sale proceeds are insured against loss
Sale proceeds are not subject to income tax
Example-Selling a dental practice