Selling Your Business Without Losing Out: Financial and Tax Keys You Need to Master

Selling Your Business Without Losing Out: Financial and Tax Keys You Need to Master

You've spent years building your business. Now that the time has come to sell, one crucial question arises: how can you maximize the value of your transaction without losing a significant portion to taxes or negotiation missteps?

Many business owners focus solely on the listed sale price. However, the true key to a successful exit lies in the financial and tax structuring of the deal.

🔍 Three pitfalls that can reduce your sale's value

⚠️ Lack of financial preparation: A buyer will thoroughly scrutinize your finances through due diligence. Accounting irregularities or unstable profitability can be major red flags that jeopardize the deal.

⚠️ Poor tax structuring: Selling directly without preparation can result in a heavy tax burden on your capital gain. There are tax optimization tools available, but they must be implemented well before the sale.

⚠️ A business too dependent on the owner: Buyers seek autonomous assets. If your company relies heavily on you, the perceived risk increases… and your sale price may decrease.

💡 Best practices to maximize your transaction

✅ Optimize your tax structure: Holding companies, Dutreil Pact, contribution-then-sale schemes… various options exist to reduce the tax impact of your sale.

✅ Negotiate a value based on synergies: Don't settle for a standard EBITDA multiple. A strategic buyer might value your company well above the norm if they identify strong synergies with their own business model.

✅ Prepare the transition in advance: A good sale doesn't end at closing. Offering a well-planned support period can reassure the buyer and enhance your business's value.

💡 Final tip: Don't let urgency dictate your exit. Take the time to anticipate, structure, and surround yourself with the right experts to turn this milestone into a real wealth-building opportunity. 🚀

📌 Case Study: A Company Advised by Casteldoza Finance – Sale or Succession?

The Issue

A successful family business reaches a strategic turning point. The 65-year-old founder and CEO wants to step back but is torn between:

• Selling to an external buyer to maximize his wealth,

• Passing the business to his children to ensure long-term family ownership,

• Doing a partial cash-out to diversify his assets while staying involved.

The company is profitable, with stable EBITDA. It has significant cash reserves but needs a structured approach to minimize tax impact and ensure a smooth transition.

The Implemented Solution

1️⃣ Strategic Preparation

• In-depth analysis of strategic options and a roadmap creation.

• Company valuation and consultation with banks on financing solutions.

2️⃣ Deal Structuring

• Casteldoza Finance proposed a hybrid approach combining succession and cash-out.

• Tax optimization through capital reduction and financial modeling validation.

3️⃣ Execution

• Secured a repayable bank loan with a capped amount to maintain financial stability.

• Successful cash-out and ownership transition.

Results

✅ Gradual transfer of shares to family members with optimized tax planning.
✅ Partial buyback of shares allowed the owner to diversify his personal wealth.
✅ The company's financial strength was preserved to support future growth.
✅ Bank support enabled an optimal structure with controlled leverage.

💡 Key Takeaway: Smart anticipation and proper structuring help maximize business valuation and minimize taxes—while ensuring a smooth and sustainable transition.

For a personalized consultation or to discuss your projects, feel free to contact:

Lorraine Delannoy, Casteldoza Finance
📧 l.delannoy@casteldoza.com | 📞 +33 6 83 25 30 59

Together, let's turn your ambitions into reality.