Most business owners learn the true size of their tax bill after the letter of intent is signed, by which point the useful options have narrowed. A Structured Installment Sale (SIS), built on IRC §453, allows a seller to spread gain recognition across future tax years, managing federal and state brackets and net investment income tax exposure, while receiving payments funded by a highly rated life insurance company rather than the buyer's promise to pay.
This session covers the mechanics: how the payment stream is designed around what the seller actually needs after closing, how the obligation is assigned away from the buyer so default and reinvestment risk are removed, and where the strategy fits among the other approaches an owner is likely to hear about. It also covers timing, because eligibility turns on the sale not yet being binding.
Attendees will leave able to recognize a candidate transaction, explain the structure to a client or co-advisor, and know when to raise it.
Learning Objectives:
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Explain how a Structured Installment Sale under IRC §453 defers gain recognition, and how the payment stream is designed around a seller's post-closing income needs and tax brackets.
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Identify the transaction characteristics that make a sale a strong candidate, including deal size, asset composition, entity structure and the seller's income picture after closing.
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Describe the roles of the assignment company and the funding carrier, and explain how third-party assignment removes the buyer default and reinvestment risk inherent in a traditional installment note.
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Recognize how the progression of a transaction — typically from letter of intent to definitive agreement to closing — governs availability, and identify the point after which the strategy can no longer be implemented.
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Raise the strategy effectively with a client's CPA, attorney or M&A advisor, anticipating the questions each will ask.
Event Details
Who Should Attend?
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Attorneys
You have close relationships with clients, and can benefit from being the first advisor to introduce the idea of exit planning.
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CPAs/Accountants
Owners participating in the State of Owner Readiness research continue to indicate that you are the No. 1 "Most Trusted Advisor." You are a natural fit to lead the exit planning team and deepen your relationship (and retention) of next generation owners.
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Wealth Managers
You’re a skilled relationship person. Being entangled into your clients’ professional lives matters as you build a strategy to manage their wealth upon them harvesting it from their business. Exit planning allows you to build a deeper relationship with your client, expands your COI network, while giving you an early seat at table well before the liquidity event.
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Investment Bankers
Only 2 of every 10 businesses that come to market actually sell. Learn how exit planning can bring attractive AND ready business to your purview.
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Valuation Analysts
Valuation is both a billable engagement AND an opportunity to provide owners some perspective on how to accelerate value drivers (and deal with value killers). Use exit planning to make that valuation into a longer term value acceleration engagement.
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Financial Advisors
One of the critical ‘legs of the stool’ is personal financing planning. An owner must have a strong financial plan & contingency plan post-transition to enable them to thrive in the next act of the lives personally and financially. Exit planning brings this future mindset into the present. Exit is now.
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Insurance Professionals
Exit planning addresses the 5 D's. So do you. Approach the risk conversation differently with exit planning.
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Strategic Consultants
One of the most critical roles in exit planning is building transferable value. Strategic consultants have the ability to expand options and drive rapid business value that affect performance today.
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Estate Planners
Exit planning is a natural fit for estate planners who want to operate more holistically with their owner clients.
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Other Professional Advisors
Regardless of your unique specialty, there is seat at the exit planning table for you. Learn more at www.EarnCEPA.com.
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Family Business Advisors
More than 50% of lower middle market business owners would prefer to transition to the next generation. Help them succeed with exit planning strategies.
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Commercial Lenders
One of the best relationships a business owner makes is with their banker. How can you help your corporate clients think about the future and ensure financial continuity? Answer: exit planning.
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Mergers & Acquisition Advisors
Proper exit planning causes less deals to fall through at the last minute. Connect with CEPAs to build your healthy deal flow network.
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Business Owners & Their Trusted Advisors
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Business Owners
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Other Business Professionals
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Business Consultants
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Professional Advisors
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Members of Family Business Boards
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Private Business Owners
EXIT PLANNING IS GOOD BUSINESS STRATEGY
The Exit Planning Institute, provides Financial Advisors, Accountants, Consultants, and other advisors of business owners with the critical education to differentiate themselves and add value to their existing client relationships through a credential, conference, courses, and content. Download the CEPA brochure for more information.
ABOUT THE PRESENTER
Dan Finn has spent more than three decades specializing in structured settlements and tax-advantaged payment solutions, with a particular focus on Structured Installment Sales (SIS)—a niche he has worked in since its inception in 2005.
Recognizing that business transitions involve complex dynamics that go far beyond the financial transaction itself, Dan pursued his Certified Exit Planning Advisor® designation to better understand those dynamics and to serve the exit planning community as a knowledgeable resource in this specialized area. He partners with business brokers, CPAs, M&A advisors, and other exit planning professionals to help business owners defer and manage the tax burden of a sale through a Structured Installment Sale—preserving more of what they’ve built.
A published author, Dan’s 2021 article in The CPA Journal, “An Introduction to Structured Installment Sales,” remains one of the most widely referenced resources on the subject. His work has also appeared in Realty Times and other industry publications. A graduate of Ohio State University with a Bachelor of Science in Education, and drawing on earlier careers as a public school teacher and insurance training manager, he brings a natural ease to presenting complex material—regularly conducting educational seminars for financial advisors, CPAs, attorneys, business brokers, real estate professionals, and others who can benefit from a deeper understanding of this specialized planning strategy.
Dan holds the Retirement Income Certified Professional® (RICP®) designation from The American College of Financial Services—a credential that reinforces his understanding of long-term income planning central to successful business transitions. He also holds the Master’s Certificate in Structured Settlement Consulting® (MSSC®) and Certified Structured Settlement Consultant® (CSSC®) designations, earned through the Mendoza School of Business at the University of Notre Dame in partnership with the National Structured Settlements Trade Association (NSSTA). A member of NSSTA since 1991, he has served on its Board of Directors, including one term as President and Chairman. He is also a member of the Exit Planning Institute and the California Association of Business Brokers.