EXIT TAX PLANNING
Entrepreneurs: Your Exit Will Cost $10M More Than Necessary
QSBS. Section 1202. Section 1045. Section 453.
These aren’t random numbers. They’re tax codes worth millions.
All have timing requirements. All need advance planning.
⚠️ THE TIMING PROBLEM
Last month: Entrepreneur selling for $50M. His lawyers projected $10M tax.
Rick restructured it. New tax: $2.1M
He kept an extra $7.9 million.
The catch: Required 12-month advance setup.
One Month = $6.5M Difference
🚨 TOO LATE
Exit in 0-6 months
Most strategies unavailable.
Limited options remaining.
⚠️ RISKY
Exit in 6-12 months
Some strategies possible.
Time constraints limit optimization.
✅ OPTIMAL
Exit in 12+ months
Full strategy implementation.
Maximum tax reduction.
Your Advisors Should Tell You This
Most business advisors focus on deal terms, not your tax outcome. But ask any sophisticated M&A attorney: Exit tax planning starts 18-24 months before the transaction.
PROOF: SaaS Founder Exit Case Study
$50M Exit • 13-Month Advance Planning • $7.9M Saved
Transaction Profile
The Problem
The founder’s lawyers were excellent at deal structure. But they weren’t tax architects.
Their $10M tax projection was “correct” under standard treatment. Rick found $7.9M in legal tax reduction through strategic advance planning.
5 Strategies Implemented
Each required 12+ months of advance setup
QSBS OPTIMIZATION
Section 1202 – Qualified Small Business Stock exclusion maximized
Tax savings
INSTALLMENT SALE
Section 453 – Strategic timing of gain recognition
Tax savings
ENTITY RESTRUCTURING
Pre-exit entity optimization for tax efficiency
Tax savings
TIMING COORDINATION
Strategic transaction timing to maximize benefits
Tax savings
STATE TAX PLANNING
Strategic residency and sourcing optimization
Tax savings
Total Exit Tax Saved
Original Tax Projection: $10.0M
Actual Tax Paid: $2.1M
He kept $7.9M extra because he called 13 months before exit.
| Scenario | Tax Outcome | Net Proceeds | Difference |
|---|---|---|---|
| Without Rick (Standard Treatment) | $10.0M | $20.0M | – |
| With Rick (Strategic Planning) | $2.1M | $27.9M | +$7.9M |
“My lawyers focused on deal terms. Rick focused on what I kept. The $7.9M difference funded my next venture. Best phone call I ever made – 13 months before exit.”
If Exiting in 0-12 Months:
- Call immediately: 888-450-3455
- Limited strategies available
- $2M-$5M still saveable
- Better late than never
If Exiting in 12+ Months:
- Perfect timing for full optimization
- All strategies available
- Potential $5M-$10M+ savings
- Schedule planning now
The Math Is Simple
Rick’s typical fee: $120K-$180K over 12-18 months
Average exit tax reduction: $5M-$10M
ROI: 2,778%-5,556%