BrokerageIndustry News

Navigating the sale of your real estate business

Part 6: Creating a real estate exit strategy

(This is Part 6 of a six-part series. See Part 1: Are your ready to sell your real estate practice? Part 2: Finding best successor for your real estate biz; Part 3: How to build a saleable real estate biz; Part 4: 7 ways to beef up your real estate business and Part 5: Putting a price tag on your real estate business.) If you're thinking about selling your business, lack of careful planning can cost you thousands of dollars. The last five columns have examined how to build your book of business and how to establish the value of your business. This week's edition looks at how to navigate through the actual sale. First, the most important step you can take is to talk to both your attorney and your CPA before doing anything. Issues you will have to address include the following. 1. Entity or Asset Sale? An entity sale transfers all stock in the company and/or all membership interests in an LLC. The sale is subject to long-term capital gain tax. In contrast, asset sales divide assets int...