Tens of thousands of privately owned small businesses are expected to change hands in the next decades as Baby Boom business owners retire. They're left with a wealth management challenge: how to invest the proceeds and plan for the new money in their estates. Crain's Wealth asked David Post, partner and investment committee chair at Detroit-based Telemus Capital, LLC, to run through a typical scenario for readers.
The story A 60-year-old couple with three grown children and four grandchildren sells its California-based auto supply business to a regional company for $8 million. The sale is structured as an installment sale with $5 million paid up front and $3 million deferred and paid in three equal installments over the next three years.