Posted by Crain’s Detroit Business, see the original article here.
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.