Sale of Private Business - State Tax Free

In the 1990's, after establishing a long-term relationship with a private business owner and his family, Vogel Consulting helped lead the strategic planning for succession or possible sale of the business. During the course of detailed planning sessions it became clear that it was in the best interest of the family and the business to pursue a well planned, strategic sale. Vogel Consulting assisted the family in searching for and selecting an appropriate strategic buyer, putting into place a corporate re-structuring plan which was combined with key changes in company operations.

An integration-led wealth management™ was designed by Vogel, helped with the eventual sale. This plan included a substantial commitment by the family to support their community through charitable actions. Upon careful research, Vogel Consulting advised the client that the private stock in their company was issued in the early 1980's, during a brief tax relief window created by the state legislature. The legislature had created a state law offering an incentive for the creation of new businesses by eliminating the state tax due on the sale of private stock which was issued during a specific time period. At the time, the provisions were hailed as an incentive to invest in new business development. Vogel Consulting advised the client that a properly structured strategic sale of their business could be completed free from state taxation. The company had fulfilled all of the requirements and provisions of the legislature. With the appropriate structuring of the transaction with the eventual purchaser, the sale was completed, and no state tax was due.

The sale was one of the largest in the state's history. The opportunity to diagnose, solve and implement a family/business strategic plan over several years was critical to the family's success. In fact, not long after the close of the sale, the acquiring Fortune 500 firm requested that Vogel Consulting offer separate advice to the company on related transition issues. In the end, the sale was a good fit for the client and for the acquiring firm. Today Vogel Consulting continues to provide family office services to this client, who has fulfilled a philanthropic dream of stubstantially contributing to their community.