Case Study Category

Exit Planning Case Studies

Learn how business owners have structured sales, succession plans, and exit transactions to minimize capital gains taxes, defer recognition, and protect generational wealth.

27
Total Studies
$4.8M
Total Exit Tax Savings
$178K
Average Per Transaction

Featured Exit Planning Case Studies

20 highlighted engagements showcasing proven exit, sale, and succession strategies for business owners.

QSBS IRC 1202

Tech Founder Excludes $10M in Capital Gains Through IRC 1202 QSBS Election

A technology startup founder sold their C-Corp shares for $12M after holding qualified small business stock for over five years. IRC Section 1202 allowed exclusion of $10M in capital gains, resulting in $2M in federal tax savings on the transaction.

$2,000,000
Tax Savings
AE Tax Advisors Team
Installment Sale Gain Deferral

Manufacturing Owner Spreads $3.2M Gain Over Ten Years With Installment Sale

A manufacturing business owner sold their company for $5M and structured the transaction as an installment sale under IRC 453. Spreading the $3.2M capital gain over ten years kept the seller in lower tax brackets each year, saving $380,000 compared to a lump-sum sale.

$380,000
Tax Savings
AE Tax Advisors Team
ESOP Succession

Family Business Transitions to Employee Ownership Through $8M ESOP Transaction

A family-owned distribution company with 45 employees established an Employee Stock Ownership Plan, selling 100% of shares to the ESOP for $8M. The seller deferred capital gains through IRC 1042 rollover, and the company became tax-exempt as a 100% ESOP-owned S-Corp.

$960,000
Tax Savings
AE Tax Advisors Team
Business Sale Asset vs Stock

Buyer and Seller Negotiate Asset Sale Structure Saving Both Parties $210K

Our team modeled both asset sale and stock sale structures for a $4.5M business transaction. The negotiated asset sale with optimal purchase price allocation saved the seller $85,000 in ordinary income tax while giving the buyer $125,000 in additional depreciation deductions.

$210,000
Combined Tax Savings
AE Tax Advisors Team
Charitable Remainder Trust CRT

Business Owner Funds CRT Before Sale to Defer $1.8M Capital Gain

Prior to selling a $6M business, the owner contributed shares to a charitable remainder unitrust. The CRT sold the shares tax-free, invested the full proceeds, and provided the owner with annual distributions for 20 years while generating a $540,000 charitable deduction.

$540,000
Tax Benefit
AE Tax Advisors Team
Succession Family Transfer

Father Transfers $3M Business to Children Using Grantor Retained Annuity Trust

A business owner transferred ownership of a $3M company to their children through a two-year GRAT, paying the required annuity from business cash flow. The strategy moved the business out of the owner's estate with minimal gift tax exposure, saving an estimated $450,000 in future estate taxes.

$450,000
Estate Tax Savings
AE Tax Advisors Team
QSBS Stacking

Married Founders Stack QSBS Exclusions for $20M in Combined Tax-Free Gains

Married co-founders who each held qualifying C-Corp shares for over five years each claimed the $10M IRC 1202 exclusion upon sale. The combined $20M exclusion eliminated $4.7M in federal capital gains taxes on the transaction.

$1,480,000
Tax Savings
AE Tax Advisors Team
Installment Sale Related Party

Parent Sells Business to Child Via Installment Sale With Below-Market Terms

A parent sold their $2M business to an adult child using an installment sale with IRS-compliant AFR interest rates. The structure spread the gain over fifteen years while transferring ownership immediately, saving $180,000 in taxes versus an outright sale.

$180,000
Tax Savings
AE Tax Advisors Team
Business Sale Opportunity Zone

Seller Reinvests $2.5M Capital Gain Into Opportunity Zone Fund for Tax Deferral

After selling a business for $4M with a $2.5M capital gain, the seller reinvested the gain into a qualified Opportunity Zone fund within 180 days. The investment deferred the original gain and, if held for ten years, will eliminate taxes on the new investment's appreciation.

$500,000
Tax Deferral
AE Tax Advisors Team
Succession Buy-Sell Agreement

Three Partners Structure Tax-Efficient Buy-Sell Agreement for $6M Practice

A three-partner medical practice valued at $6M implemented a cross-purchase buy-sell agreement funded with life insurance. The structure ensured surviving partners received a stepped-up basis in the purchased interest, saving an estimated $280,000 in future capital gains taxes.

$280,000
Projected Savings
AE Tax Advisors Team
ESOP IRC 1042

C-Corp Owner Defers $1.2M Gain Through IRC 1042 ESOP Rollover

A C-Corp owner sold 30% of shares to an ESOP and elected IRC 1042 rollover treatment, reinvesting proceeds into qualified replacement property within 12 months. This deferred $1.2M in capital gains indefinitely, saving $285,000 in the year of sale.

$285,000
Tax Deferral
AE Tax Advisors Team
Business Sale Consulting Agreement

Seller Structures Post-Sale Consulting Agreement to Optimize Ordinary vs Capital Treatment

In a $3M business sale, our team negotiated a $200,000 post-sale consulting agreement for the seller. This reallocated a portion of the purchase price from capital gain treatment to ordinary income spread over two years, reducing the seller's NIIT exposure and saving $52,000.

$52,000
Tax Savings
AE Tax Advisors Team
Charitable Remainder Trust Appreciated Stock

Owner Donates Appreciated Business Shares to CRT Before Planned Liquidation

Anticipating a business liquidation, the owner contributed 25% of their appreciated C-Corp shares to a charitable remainder trust. The CRT received the liquidation proceeds tax-free, and the owner received a $320,000 charitable deduction while retaining income rights for life.

$320,000
Tax Benefit
AE Tax Advisors Team
Succession Valuation Discount

Family LLC Transfers $5M Business Interest With 35% Valuation Discount

A business owner restructured their $5M company into a family LLC and gifted minority interests to children. The lack of marketability and minority interest discounts reduced the taxable gift value by 35%, saving $650,000 in gift and estate taxes on the transfer.

$650,000
Estate Tax Savings
AE Tax Advisors Team
Installment Sale Self-Canceling Note

Elderly Owner Uses Self-Canceling Installment Note for $1.5M Business Transfer

A 72-year-old business owner sold their company to a key employee using a self-canceling installment note (SCIN). The note's terms provided a premium for the cancellation feature, and upon the owner's passing, the remaining balance was canceled without triggering estate tax.

$225,000
Estate Tax Savings
AE Tax Advisors Team
QSBS Entity Restructuring

LLC Converts to C-Corp Five Years Before Exit to Qualify for QSBS Exclusion

Our team identified that an LLC taxed as a partnership could convert to a C-Corp and qualify for QSBS treatment on future appreciation. After five years, the founders sold for $8M and excluded $5.2M in post-conversion gains from federal taxation.

$1,040,000
Tax Savings
AE Tax Advisors Team
Business Sale Purchase Price Allocation

Strategic Purchase Price Allocation Converts $400K of Ordinary Income to Capital Gains

In a $7M business sale, our team negotiated the purchase price allocation to minimize goodwill assigned to personal goodwill taxed at capital gains rates versus covenant not to compete taxed as ordinary income. The allocation shift saved the seller $68,000.

$68,000
Tax Savings
AE Tax Advisors Team
Succession Intentionally Defective Grantor Trust

Owner Sells Business to IDGT, Freezing Estate Value and Eliminating Gift Tax

A business owner sold their $4M company to an intentionally defective grantor trust in exchange for a promissory note. The sale froze the value in the estate, future appreciation passed to heirs tax-free, and the owner paid income taxes on the trust's earnings, further reducing the estate.

$780,000
Estate Tax Savings
AE Tax Advisors Team
Business Sale Earnout Structure

Earnout Provision Defers $900K in Contingent Gain Over Three Performance Years

A business sold for $3M upfront plus a $1.5M earnout tied to three years of performance targets. Our team structured the earnout as an open-transaction, deferring $900,000 in contingent capital gain until the earnout payments were actually received, saving $135,000 in the sale year.

$135,000
First-Year Savings
AE Tax Advisors Team
ESOP S-Corp Tax-Exempt Income

S-Corp Converts to 100% ESOP Ownership, Eliminating Federal Income Tax on Operations

A profitable S-Corp with $2M in annual net income transitioned to 100% ESOP ownership. Because an S-Corp owned entirely by an ESOP is exempt from federal income tax, the company saved $480,000 annually in taxes, redirecting those funds to employee retirement accounts and business growth.

$480,000
Annual Tax Savings
AE Tax Advisors Team

Planning Your Business Exit?

Whether you are selling, transferring to family, or transitioning to employees, our team structures exits to minimize taxes and maximize your after-tax proceeds.

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