World Class Mergers & Acquisitions  |  For Companies $5 Million to $100 Million in Revenue

Mergers & Acquisition FAQ – May 2009

Q: Does a down economy affect business succession planning?

A: For the most part, it can be advantageous to start a succession plan during a down economy or even sell a business interest to a succeeding generation.  During recessions, business values ordinarily go down slightly.  While this is usually a bad thing for the business owner, transferring part or all of the business via a sale or gift during a recession can make the sale a less taxing option or if the business owner were to sell to the next generation, the lowered value could make it easier for the next generation to buy the business. If you are looking for maximum value, start your business succession planning now and sell during the next upswing the economy experiences.

Q: How long do I have to rollover a retirement distribution?

A: You have 60 days to rollover a retirement distribution from the day that you receive the distribution.  Otherwise, the distribution, taken before the statutory distribution age, can be taxed and subject to a 10% penalty.

Q: I have an employee claiming 11 exemptions.  Must I report this to the IRS?

A: No. In the past, employers were obligated to send the IRS the employee’s W-4 form when employees claimed over 10 exemptions or claiming complete exemption from withholding.  This requirement has been eliminated.

By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors