Sell or transfer your business

If you hold a significant equity stake in your company, an IPO, merger or corporate sale can unlock substantial personal wealth. But taxes, unforeseen expenses and volatile markets can quickly erode it. Careful advance planning can help sustain your wealth - especially if you start early.

Having advised business owners for more than 160 years, JPMorgan understands the challenges of translating business value into personal wealth. Whatever form your transaction takes, we can suggest strategies for optimizing the outcome.

Extensive experience
We can help you prepare for a sale by valuing your interest in the business, weighing the pros and cons of various kinds of liquidity events and recommending strategies for tax-efficient wealth transfer.

Cash transactions
If you sell your business for cash, you'll gain instant liquidity, but you could also be exposed to capital gains tax. Are you willing to finance part of the deal? Doing so could lead to a higher price, but it might also tie up some of your money for a few years.

Stock transactions
If you sell your business for stock, you'll be left with a concentrated position in a public company you may not control. If you undertake an IPO, you'll own marketable shares in a public company, but you'll be barred from selling them during an initial lock-up period. We can recommend and execute strategies for managing these risks.

Preparing the business for sale
In advance of a sale, you will want to make the business as attractive as possible to a potential buyer. Ideally, you'll want to have audited financial statements, positive cash flow, few liabilities and a team of committed, experienced employees who are contractually bound to stay through the transition.

Seizing the opportunity for wealth transfer
It's often best to transfer wealth to your beneficiaries before you sell the company. The reason: The value of a minority share in a private company is discounted for transfer tax purposes. If the gift's value rises after the business is sold, the appreciation will have been sheltered from gift and estate taxes.

Contact a JPMorgan Advisor to learn more about how JPMorgan can work with you on the sale or transfer of your business. Alternatively, you may contact any JPMorgan office.