GETTING THE SELLER OVER THE FINISH LINE WITH A MARKETABLES LINE OF CREDIT
Recently I had a customer selling their business (through a broker) who was hesitant to sell since they were paying a large fee to the broker as well as the high tax liability from the sale (C Corp). I introduced them to our wealth team and we set them up with a line against their post close investment account. So while they still had the broker fee and the tax liability, they did not liquidate to do so (combined $350,000). Rather than liquidate stocks they are using their line to pay these expenses. Since they can borrow incredibly cheaply on that account and gain on the full investment account, this will pay their line off in about 4-5 years depending on the market and/or the type of investments they put money in. At that time they will have liquidate nothing other than the interest and will keep the original $350,000 that would have otherwise been gone shortly after close. Thought I would mention this in the event sellers ever express these obstacles in selling their business and give you a creative way to pacify these objections. Feel free to reach out if you want further details.