Strategy to Transfer Ownership of Machine Shop

[ontariocanuck]

I am the beneficiary of a machine shop given to my wife and her sister so let me chime in if I can.

-Get what the owner promised you in writing, notarized by your lawyers. In fact, run to the lawyer !!
-Were there any suggestions that you would buy the business? Rent to own kind of deal?
-Does the shop make money? Have you personally seen the Income Statement and Balance Sheet?
-Do they have any kids, close relatives who may contest their wishes?
-Do they own the building? Has it been promised to anyone?
-Business is about relationships often, are the clients/customers OK with you as the owner?
-Where are you located? State?

That's all I can think of off the top of my head right now.

 

[john.k]

My old man was like "I aint givin away nothin,cause its all goin into the Pyramid with me"

 

[DouglasJRizzo]

My old man was like "I aint givin away nothin,cause its all goin into the Pyramid with me"

I've owned several hearses in my life. None ever had a trailer hitch.

 

[DouglasJRizzo]

Yeah, and if you're 80 years old what do you suppose that insurance policy costs.

If you're 80 with bills and such, that policy would be at least "something" to leave your kids rather than a mountain of debt and taxes.
Ever wonder why some folk walk away from an inheritance? That's why..

 

[kootne]

A thought for the seller; When I sold my business about 23 years ago, all the machinery was depreciated out. So when you sell the proceeds are all profit as far as the IRS is concerned. So we sold 1/2 on Dec.31, other 1/2 on Jan. 1, a lot more of the sale went into lower tax brackets that way.