IFR Module 259 — Business Valuation & Exit Strategy
The Keep/Sell Decision: One of the most consequential financial decisions a business owner faces is whether to continue operating their business or sell it and invest the proceeds. This analysis projects wealth accumulation under both scenarios to inform the decision.
Business & Owner Information
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Keep & Operate
Years to Retirement-
Total Profit Earned-
After-Tax Income-
Business Value at Retirement-
After-Tax Sale Proceeds-
Accumulated Savings-
Total Wealth at Retirement-
Sell Now & Invest
Sale Price-
Capital Gains Tax-
Net Proceeds to Invest-
Investment Return-
Years of Growth-
Portfolio at Retirement-
Total Wealth at Retirement-
Wealth Accumulation: Keep vs. Sell
Key Considerations
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Key Person Risk
If you are the business, its value may decline without you. Consider whether the business can operate independently or if its value is tied to your personal involvement.
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Market Timing
Business valuations fluctuate with market conditions, industry trends, and economic cycles. Selling in a buyer's market may yield lower proceeds than waiting for more favorable conditions.
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Succession Planning
Is there a family member, partner, or employee who can take over? Internal succession can preserve the business value while allowing a gradual transition.
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Lifestyle & Purpose
Beyond the numbers, consider your identity, daily purpose, and social connections tied to the business. Many owners who sell experience a significant adjustment period.
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Tax Strategy
Installment sales, Qualified Small Business Stock (QSBS) exclusion, and opportunity zone investments can significantly reduce the tax burden on a business sale.
Disclaimer. Third-party product names and methodology names are the property of their respective owners. Reference does not imply endorsement or affiliation. This tool is the work product of Nate Cocco; the analysis is reviewed by Nate before any client recommendation.