Wealth managers
Your client’s biggest asset finally gets a number, and the number a wealth plan actually runs on: what the owner keeps after costs and tax.
The number a wealth plan runs on
For many business owners, the business is most of their net worth, and nobody has put a number on it. A valuation alone isn’t the number a plan needs. A plan needs what the owner keeps.
- SValue of the business$3.93M
- 1Transaction costs−$315k
- 2Seller’s tax−$983k
- ENet to the owner$2.64M
How to read it. Start with the value, subtract the costs of selling and the tax on the gain, and what’s left is the owner’s. Seller notes and earn-outs are paid later and aren’t included.
Net proceeds by deal structure
| Structure | Transaction costs | Seller’s tax | Net to the owner |
|---|---|---|---|
| Stock sale | $315k | $983k | $2.64M |
| Asset sale | $315k | $1.00M | $2.62M |
| Stock sale with a 338(h)(10) or F-reorg election | $315k | $1.00M | $2.62M |
Illustrative rates: costs of 6%–10% of the price, 20% federal and 5% state on the gain, 37% on equipment recapture. The owner’s CPA and counsel set the real ones.
In an asset sale, the buyer gets a stepped-up tax basis worth about $370k to them in present value. It is money on the table the two sides usually share, and the report shows it from both sides.
Then the number grows
The same run carries a plan: in the sample, five moves worth +$2.00M over 36 months. That turns a planning conversation about a fixed asset into one about a growing one, and gives you a reason to start the conversation that isn’t a sales pitch.
Keep the relationship
Deliver it under your own name. The method is disclosed in full, so a client’s CPA can check it, and the report says plainly that it is an estimate of value for planning, not a formal appraisal.
See it on a real report, or see it on yours.Download a sample reportSchedule demo