{"id":687,"date":"2020-03-12T03:22:45","date_gmt":"2020-03-12T03:22:45","guid":{"rendered":"https:\/\/nexusbusinessassociates.com\/site\/?p=687"},"modified":"2020-03-12T03:37:16","modified_gmt":"2020-03-12T03:37:16","slug":"family-owned-businesses-urged-to-sell-before-the-party-ends","status":"publish","type":"post","link":"https:\/\/nexusbusinessassociates.com\/site\/suggested\/family-owned-businesses-urged-to-sell-before-the-party-ends\/","title":{"rendered":"Family-Owned Businesses Urged to Sell Before the Party Ends"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;3.22&#8243; fb_built=&#8221;1&#8243; _i=&#8221;0&#8243; _address=&#8221;0&#8243;][et_pb_row _builder_version=&#8221;3.29.3&#8243; _i=&#8221;0&#8243; _address=&#8221;0.0&#8243;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.29.3&#8243; _i=&#8221;0&#8243; _address=&#8221;0.0.0&#8243;][et_pb_text _builder_version=&#8221;3.29.3&#8243; _i=&#8221;0&#8243; _address=&#8221;0.0.0.0&#8243;]<\/p>\n<h2><strong>Watch the Article, or Read Below:<\/strong><\/h2>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;3.29.3&#8243; text_orientation=&#8221;center&#8221; _i=&#8221;1&#8243; _address=&#8221;0.0.0.1&#8243;]<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube-nocookie.com\/embed\/n0aTSnxrBL0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;3.25&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; _i=&#8221;1&#8243; _address=&#8221;0.1&#8243;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.25&#8243; custom_padding=&#8221;|||&#8221; _i=&#8221;0&#8243; _address=&#8221;0.1.0&#8243; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;3.29.3&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; _i=&#8221;0&#8243; _address=&#8221;0.1.0.0&#8243;]<\/p>\n<ul>\n<li><strong>The potential for higher taxes next year may accelerate deals<\/strong><\/li>\n<li><strong>\u00a0Market conditions \u2018as good as it gets\u2019 with buyers circling<\/strong><\/li>\n<\/ul>\n<p><strong>Families who own businesses are getting this piece of New Year\u2019s advice:<\/strong> Sell.Not only is it a great time to put a private company up for sale while the economy is strong and many deep-pocketed buyers are circling, wealth advisers are also reminding clients of looming political uncertainty toward the end of 2020.<\/p>\n<p>If President Donald Trump loses the election, Democrats running to replace him have promised to boost taxes on the rich. While the wealth tax proposed by senators Elizabeth Warren and Bernie Sanders gets the most attention, other top candidates have ideas for squeezing the 0.1%. Former Vice President Joe Biden, for example, said he wants to almost double the rate on long-term capital gains to 39.6% for taxpayers earning more than\u00a0$1 million\u00a0a year.<\/p>\n<p>\u201cThe Democratic zeitgeist now seems to be higher taxes,\u201d said Brad Dillon, senior wealth strategist at UBS Group AG in New York. \u201cIf you were thinking about selling your business in the next two years, it\u2019s definitely something to think about.\u201d<\/p>\n<p>For the owner of a multi-million dollar company, selling by the end of 2020 could result in a much smaller tax bill than striking a deal in 2021 under new rules. Of course, a new president would need Congress to go along with a tax hike, and that\u2019s hardly a certainty even if Trump is defeated.<\/p>\n<p>Nonetheless, the political risks also coincide with excellent conditions for selling.<\/p>\n<p>\u201cThis is as good as it gets,\u201d said Marshall Rowe, president for business-owner services at Colony Group, where he advises owners of companies worth about\u00a0$50 million\u00a0to\u00a0$350 million.<\/p>\n<h3>Deal Hunters<\/h3>\n<p>U.S. stocks have continued to rise, with the S&amp;P 500 advancing 1.8% this month after surging 29% last year.<\/p>\n<p>With the stock market setting\u00a0record highs\u00a0almost daily, interest rates near historic lows and the broader economy doing well, owners are getting high valuations for their businesses. The family of the founder of Les Schwab Tire Centers is\u00a0weighing\u00a0a sale that could value the Bend, Oregon-based retail chain, with more than 450 locations in 10 states, at more than\u00a0$3 billion.<\/p>\n<p>There are plenty of potential buyers seeking acquisitions.<\/p>\n<p>Private equity firms have an unprecedented amount of cash to deploy. Blackstone Group Inc., Carlyle Group LP and other firms have almost\u00a0$1.5 trillion\u00a0in unspent capital, the highest year-end total on record, according to Prequin data. Private equity firms executed about\u00a0$450 billion\u00a0of deals\u00a0last year.<\/p>\n<p>Many super-rich families are also in the hunt, adding to the competition. They\u2019re building out family offices &#8212; mini investment firms set\u00a0up to\u00a0manage their personal wealth &#8212; and looking for recession-proof businesses to include in their portfolios.\u00a0In July, for example, the family office tied to billionaire Chicagoan\u00a0Tony Pritzker\u00a0acquired wastewater treatment company Valicor Environmental Services.<\/p>\n<p>When 111 U.S. family offices were surveyed by Fidelity Family Office Services last year, 98% said they expected to maintain or increase direct investments over the next three to five years.<\/p>\n<p>Buyers are also coming to the U.S. from abroad. A Qatari-backed firm\u00a0snapped up\u00a0the Montage Beverly Hills hotel last month, while Africa\u2019s richest person,\u00a0Aliko Dangote, plans to diversify his wealth by\u00a0opening an investment office in New York.<\/p>\n<p>The decision to sell a family business isn\u2019t made lightly. The process of finding a buyer, agreeing on a price and completing the transaction can take a year or more.<\/p>\n<p>Some families also aren\u2019t sure they want to let go of their life\u2019s work. That\u2019s driving investors to make more creative pitches.<\/p>\n<p>\u201cWe\u2019ve seen a number of families that are reluctant to give up control immediately but may be willing to sell a minority position first, then after getting comfortable, sell a controlling stake over time,\u201d said Brian Frank, who runs Declaration Partners LP, which manages Carlyle co-founder\u00a0David Rubenstein\u2019s family fortune.<\/p>\n<p>\u201cClients are more open right now because the\u00a0market conditions\u00a0are so good,\u201d said Lisa Featherngill, head of legacy and wealth planning at Abbot Downing, a unit of San Francisco-based Wells Fargo &amp; Co. But \u201cthey\u2019re not going to take the deal until it\u2019s the right deal.\u201d<\/p>\n<h3>OK Boomer<\/h3>\n<p>In this environment, some business owners are getting offers they\u00a0can\u2019t refuse.<\/p>\n<p>\u201cThere is an acceleration of a desire to sell,\u201d said Joan Crain, global family wealth strategist at Bank of New York Mellon Corp., citing \u201cclients who were lackadaisical\u201d but \u201care now very motivated.\u201d<\/p>\n<p>If conditions change, advisers want to make sure they\u2019re not blamed for failing to warn clients to sell when times were good. That\u2019s particularly true for the many Baby Boomer business owners who are now approaching retirement age.<\/p>\n<p>Older owners have plenty of good reasons to unload their businesses now, their advisers say. Many are already worried about the future of their industries, especially the threat of disruption from new competitors or technology changes &#8212; \u201cgetting Amazon-ed,\u201d as Rowe puts it. Aging business owners often realize that a buyer with deep pockets is more likely to have the expertise and resources to keep up.<\/p>\n<p>Many Boomers hoped their children would take over at some point, but Rowe and others said that\u2019s happening much less than it used to. Advisers often need to offer a reality check to owners whose children aren\u2019t stepping\u00a0up to\u00a0take over. \u201cWe can see objectively that\u2019s not going to happen &#8212; time is running out,\u201d Crain said. \u201cSometimes we have to nudge them.\u201d<\/p>\n<h3>Deal Stampede<\/h3>\n<p>The 2020 election is one risk among many facing closely held businesses, but it gives advisers more ammunition to persuade clients that they shouldn\u2019t miss the chance for a lucrative exit.<\/p>\n<p>If Democrats win the White House and both chambers of Congress, the wealthy could face a number of expensive tax changes. In addition to targeting wealth and capital-gains income, Democrats, including Sanders and Biden, have proposed changes to estate tax rules that would make it harder for the wealthy to pass on fortunes to children, grandchildren and beyond.<\/p>\n<p>Democrats could also reverse provisions of the tax overhaul enacted in late 2017. The law boosted many companies\u2019 profits and valuations by slashing the corporate tax rate and creating a controversial 20%\u00a0break\u00a0for owners of many other businesses.<\/p>\n<p>Then there are regulatory matters that affect particular industries. Many business owners are fans of Trump\u2019s hands-off approach to issues including environmental and labor rules. A Democrat in the White House would almost certainly seek to reinstate and strengthen regulations that Trump rolled back and wouldn\u2019t need Congressional approval to do so.<\/p>\n<p>\u201cIf there\u2019s an administration change, the risks are bigger than taxes,\u201d Rowe said. For his clients, \u201cit\u2019s a combination of those things that is getting them a little spooked.\u201d<\/p>\n<p>While it may\u00a0feel\u00a0far away and unlikely now, a big Democratic victory in November could trigger a stampede of deals as rich clients grab one last chance to exploit the current rules. Estate planners, financial advisers and lawyers said they would expect an extremely busy several weeks after a Trump loss.<\/p>\n<p><strong>\u201cIf a Democrat is elected,\u201d UBS\u2019s Dillon said, \u201cit\u2019s going to be a madhouse.\u201d<\/strong><\/p>\n<p>By Ben Steverman<br \/>January 14, 2020<br \/>\u2014 With assistance by Laura Davison, and Heather Perlberg<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Watch the Article, or Read Below: The potential for higher taxes next year may accelerate deals \u00a0Market conditions \u2018as good as it gets\u2019 with buyers circling Families who own businesses are getting this piece of New Year\u2019s advice: Sell.Not only is it a great time to put a private company up for sale while the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":705,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<div class=\"lede-wrap\">\r\n<div class=\"lede-text-v2 lede\">\r\n<div class=\"lede-text-v2__container\">\r\n<div class=\"lede-text-v2__content\">\r\n<h1 class=\"lede-text-v2__hed\">Family-Owned Businesses Urged to Sell Before the Party Ends<\/h1>\r\n<address class=\"lede-text-v2__byline\">By\u00a0\r\n<div class=\"author-v2\"><a class=\"author-v2__byline\" href=\"https:\/\/www.bloomberg.com\/authors\/APyzp7f-aN0\/ben-steverman\" rel=\"author\">Ben Steverman<\/a><\/div>\r\n<\/address>\r\n<div class=\"lede-text-v2__times\"><time class=\"article-timestamp\" datetime=\"2020-01-14T11:00:00.007Z\" data-type=\"updated\" data-status=\"localized\">January 14, 2020, 6:00 AM EST<\/time>\u00a0<span class=\"updated-wrap\"><span class=\"updated-text\">Updated on\u00a0<\/span><time class=\"article-timestamp\" datetime=\"2020-01-14T12:57:58.362Z\" data-type=\"updated\" data-status=\"localized\">January 14, 2020, 7:57 AM EST<\/time><\/span><\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"content-well-v2\">\r\n<section class=\"main-column-v2\">\r\n<ul class=\"abstract-v2\">\r\n<li class=\"abstract-v2__item\">\u00a0The potential for higher taxes next year may accelerate deals<\/li>\r\n<li class=\"abstract-v2__item\">\u00a0Market conditions \u2018as good as it gets\u2019 with buyers circling<\/li>\r\n<\/ul>\r\n<div class=\"lede-video-v2 lede\">\r\n<div class=\"video-player\">\r\n<div id=\"player-5kmRUcS\" class=\"video-player__container fade-small stick\" data-bmmrid=\"BV0bFeXlSY2hbFFuUKFXXg\" data-url=\"https:\/\/www.bloomberg.com\/news\/videos\/2020-01-15\/family-owned-businesses-urged-to-sell-before-the-party-ends-video\" data-autoplay=\"true\" data-poster=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/iZjBmrznBouY\/v5\/-1x-1.jpg\" data-sites=\"bbiz,bpol,wealth\">\r\n<div class=\"bvp-playlist-player bvp-playlist-player--last vjs-tech-hlsjs\" data-breakpoints=\"320 640 800\" data-min-width=\"0\">\r\n<div class=\"bvp-playlist-player__container\">\r\n<div class=\"bvp-playlist-slide\">\r\n<div id=\"bvp-bvp_pl-175799\" class=\"video-js vjs-default-skin vjs-show-big-play-button-on-pause vjs-fluid bvp-bvp_pl-175799-dimensions vjs-controls-enabled vjs-workinghover vjs-v6 vjs-autoplay spotx-fullscreen-parent-element vjs-playing vjs-has-started vjs-user-inactive\" lang=\"en\" tabindex=\"-1\" role=\"region\" data-breakpoints=\"320 640 800\" aria-label=\"Video Player\" data-min-width=\"0\">\r\n<div class=\"vjs-text-track-display\" aria-live=\"off\" aria-atomic=\"true\">\r\n<div>\u00a0<\/div>\r\n<\/div>\r\n<div class=\"vjs-control-bar\" dir=\"ltr\">\u00a0<\/div>\r\n<div>\u00a0<\/div>\r\n<div class=\"bvp-title-bar\">\r\n<div class=\"bvp-title-bar__text\">Family-Owned Businesses Urged to Sell Before the Party Ends<\/div>\r\n<\/div>\r\n<div>\r\n<div class=\"bvp-muted-overlay\">\u00a0<\/div>\r\n<\/div>\r\n<div id=\"bvp-fence-subscribe-1384\" class=\"bvp-fence-subscribe\">\u00a0<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"bvp-playlist-slide bvp-playlist-slide__preload\">\u00a0<\/div>\r\n<div class=\"bvp-playback-transition bvp-hidden\">\r\n<div class=\"bvp-playback-transition__container\">\r\n<div class=\"bvp-playback-transition__title\">\u00a0<\/div>\r\n<div class=\"bvp-playback-transition__buttons\">\u00a0<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"lede-video-v2__caption\">Family-Owned Businesses Urged to Sell Before the Party Ends<\/div>\r\n<\/div>\r\n<div class=\"body-columns\">\r\n<div class=\"middle-column\">\r\n<div class=\"body-copy-v2 fence-body\">\r\n<aside class=\"left-column\">\r\n<div class=\"text-to-speech\">\r\n<h2 class=\"text-to-speech__label\">LISTEN TO ARTICLE<\/h2>\r\n<div class=\"text-to-speech__controls\"><button class=\"text-to-speech__input-button\" aria-label=\"Listen to article\"><\/button>\u00a0\r\n<div class=\"text-to-speech__runtime\" data-duration=\"410749\">6:51<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"share-article-button\">\r\n<h2 class=\"share-article-button__label\">SHARE THIS ARTICLE<\/h2>\r\n<div class=\"share-article-button__option\">\r\n<div class=\"share-article-button__icon share-article-button__icon-facebook\">\u00a0<\/div>\r\n<a class=\"share-article-button__link\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2020-01-14%2Frich-families-urged-to-sell-their-businesses-before-party-ends\" rel=\"nofollow\" data-new-window=\"\" aria-label=\"Share this article on Facebook (opens in a new window)\">Share<\/a><\/div>\r\n<div class=\"share-article-button__option\">\r\n<div class=\"share-article-button__icon share-article-button__icon-twitter\">\u00a0<\/div>\r\n<a class=\"share-article-button__link\" href=\"https:\/\/twitter.com\/share?text=Rich%20families%20who%20own%20businesses%20are%20being%20urged%20to%20sell%20while%20the%20economy%20is%20strong%20and%20many%20deep-pocketed%20buyers%20are%20circling&via=business&url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2020-01-14%2Frich-families-urged-to-sell-their-businesses-before-party-ends\" rel=\"nofollow\" data-new-window=\"\" aria-label=\"Share this article on Twitter (opens in a new window)\">Tweet<\/a><\/div>\r\n<div class=\"share-article-button__option\">\r\n<div class=\"share-article-button__icon share-article-button__icon-linkedin\">\u00a0<\/div>\r\n<a class=\"share-article-button__link\" href=\"https:\/\/www.linkedin.com\/shareArticle?mini=true&title=Family-Owned%20Businesses%20Urged%20to%20Sell%20Before%20the%20Party%20Ends&summary=Families%20who%20own%20businesses%20are%20getting%20this%20piece%20of%20New%20Year%E2%80%99s%20advice%3A%20Sell.&url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2020-01-14%2Frich-families-urged-to-sell-their-businesses-before-party-ends\" rel=\"nofollow\" data-new-window=\"\" aria-label=\"Share this article on LinkedIn (opens in a new window)\">Post<\/a><\/div>\r\n<div class=\"share-article-button__option\">\r\n<div class=\"share-article-button__icon share-article-button__icon-email\">\u00a0<\/div>\r\n<a class=\"share-article-button__link\" href=\"mailto:?subject=Family-Owned%20Businesses%20Urged%20to%20Sell%20Before%20the%20Party%20Ends%20-%20Bloomberg&body=Family-Owned%20Businesses%20Urged%20to%20Sell%20Before%20the%20Party%20Ends%0D%0A%0D%0Aby%20Ben%20Steverman%0D%0A%0D%0AFamilies%20who%20own%20businesses%20are%20getting%20this%20piece%20of%20New%20Year%E2%80%99s%20advice%3A%20Sell.%0D%0A%0D%0Ahttps%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2020-01-14%2Frich-families-urged-to-sell-their-businesses-before-party-ends\" rel=\"nofollow\" aria-label=\"Share this article via email (opens native email client)\">Email<\/a><\/div>\r\n<\/div>\r\n<div class=\"blens\">\r\n<h2 class=\"blens__header\">In this article<\/h2>\r\n<div class=\"datastrip datastrip__c0b5bbd3 blens__cb47e381\">\r\n<div class=\"instruments__c06d06c1\">\r\n<div class=\"showMore__86f8d892 item__5fd87d4b blens__75a2494c  negative__3467c923\">\r\n<div class=\"ticker__92172706\">CG<\/div>\r\n<div class=\"itemName__4ca8b49d\"><span class=\"link__600907a1\">CARLYLE GROUP IN<\/span><\/div>\r\n<div class=\"itemPrice__20199d3e\">22.35<\/div>\r\n<div class=\"itemCurrency__e558586a\">USD<\/div>\r\n<div class=\"itemAbsoluteChange__ce70ead1 negative__3467c923\"><span class=\"priceChange__a4e5ebde animatedBackground__aeca925b\">-1.14<\/span><span class=\"percentChange__4644dd7b animatedBackground__aeca925b\">-4.85%<\/span><\/div>\r\n<\/div>\r\n<div class=\"showMore__86f8d892 item__5fd87d4b blens__75a2494c  positive__56ea2c56\">\r\n<div class=\"ticker__92172706\">UBSG<\/div>\r\n<div class=\"itemName__4ca8b49d\"><span class=\"link__600907a1\">UBS GROUP AG<\/span><\/div>\r\n<div class=\"itemPrice__20199d3e\">9.10<\/div>\r\n<div class=\"itemCurrency__e558586a\">CHF<\/div>\r\n<div class=\"itemAbsoluteChange__ce70ead1 positive__56ea2c56\"><span class=\"priceChange__a4e5ebde animatedBackground__aeca925b\">+0.05<\/span><span class=\"percentChange__4644dd7b animatedBackground__aeca925b\">+0.51%<\/span><\/div>\r\n<\/div>\r\n<div class=\"showMore__86f8d892 item__5fd87d4b blens__75a2494c  negative__3467c923\">\r\n<div class=\"ticker__92172706\">BK<\/div>\r\n<div class=\"itemName__4ca8b49d\"><span class=\"link__600907a1\">BANK NY MELLON<\/span><\/div>\r\n<div class=\"itemPrice__20199d3e\">34.20<\/div>\r\n<div class=\"itemCurrency__e558586a\">USD<\/div>\r\n<div class=\"itemAbsoluteChange__ce70ead1 negative__3467c923\"><span class=\"priceChange__a4e5ebde animatedBackground__aeca925b\">-2.35<\/span><span class=\"percentChange__4644dd7b animatedBackground__aeca925b\">-6.43%<\/span><\/div>\r\n<\/div>\r\n<div class=\"showMore__86f8d892 item__5fd87d4b blens__75a2494c  negative__3467c923\">\r\n<div class=\"ticker__92172706\">SPX<\/div>\r\n<div class=\"itemName__4ca8b49d\"><span class=\"link__600907a1\">S&P 500<\/span><\/div>\r\n<div class=\"itemPrice__20199d3e\">2,741.38<\/div>\r\n<div class=\"itemCurrency__e558586a\">USD<\/div>\r\n<div class=\"itemAbsoluteChange__ce70ead1 negative__3467c923\"><span class=\"priceChange__a4e5ebde animatedBackground__aeca925b\">-140.85<\/span><span class=\"percentChange__4644dd7b animatedBackground__aeca925b\">-4.89%<\/span><\/div>\r\n<\/div>\r\n<div class=\"showMore__86f8d892 item__5fd87d4b blens__75a2494c  negative__3467c923\">\r\n<div class=\"ticker__92172706\">BX<\/div>\r\n<div class=\"itemName__4ca8b49d\"><span class=\"link__600907a1\">BLACKSTONE GRO-A<\/span><\/div>\r\n<div class=\"itemPrice__20199d3e\">47.35<\/div>\r\n<div class=\"itemCurrency__e558586a\">USD<\/div>\r\n<div class=\"itemAbsoluteChange__ce70ead1 negative__3467c923\"><span class=\"priceChange__a4e5ebde animatedBackground__aeca925b\">-3.29<\/span><span class=\"percentChange__4644dd7b animatedBackground__aeca925b\">-6.50%<\/span><\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/aside>\r\n<p>Families who own businesses are getting this piece of New Year\u2019s advice: Sell.<\/p>\r\n<div class=\"hardwall\" data-position=\"1\">\u00a0<\/div>\r\n<div class=\"softwall\" data-position=\"1\">\u00a0<\/div>\r\n<p>Not only is it a great time to put a private company up for sale while the economy is strong and many deep-pocketed buyers are circling, wealth advisers are also reminding clients of looming political uncertainty toward the end of 2020.<\/p>\r\n<div class=\"hardwall\" data-position=\"2\">\u00a0<\/div>\r\n<div class=\"softwall\" data-position=\"2\">\u00a0<\/div>\r\n<p>If President Donald Trump loses the election, Democrats running to replace him have promised to boost taxes on the rich. While the wealth tax proposed by senators Elizabeth Warren and Bernie Sanders gets the most attention, other top candidates have ideas for squeezing the 0.1%. Former Vice President Joe Biden, for example, said he wants to almost double the rate on long-term capital gains to 39.6% for taxpayers earning more than\u00a0<span class=\"\" data-value=\"1000000\" data-original=\"$1 million\" data-symbol=\"$\">$1 million<\/span>\u00a0a year.<\/p>\r\n<div class=\"hardwall\" data-position=\"3\">\u00a0<\/div>\r\n<div class=\"softwall\" data-position=\"3\">\u00a0<\/div>\r\n<div id=\"outstream-video-1-Q3UVDXDWRGG301\" class=\"outstream-ad display\" tabindex=\"-1\" role=\"presentation\" data-position=\"outstream-video\" data-ad-status=\"rendered\">\r\n<div id=\"7a471d4e22253b8c26ba35c620d4e07c\" class=\"bb-ads__rendered bb-ads__ad\" data-google-query-id=\"COH51pL5k-gCFW6GWgUdAJcJTw\">\r\n<div id=\"google_ads_iframe_\/5262\/business\/news\/world\/article_0__container__\"><iframe id=\"google_ads_iframe_\/5262\/business\/news\/world\/article_0\" title=\"3rd party ad content\" name=\"google_ads_iframe_\/5262\/business\/news\/world\/article_0\" width=\"1\" height=\"8\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" data-google-container-id=\"1\" data-integralas-id-b0f16918-750c-8be8-677b-d930577effd8=\"\" data-load-complete=\"true\" data-mce-fragment=\"1\"><\/iframe><\/div>\r\n<div class=\"teads-inread sm-screen\">\r\n<div>\r\n<div class=\"teads-ui-components-adchoices\">\u00a0<\/div>\r\n<div class=\"teads-ui-components-label\">ADVERTISING<\/div>\r\n<div id=\"teads1\" class=\"teads-player\"><iframe frameborder=\"0\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><\/div>\r\n<\/div>\r\n<\/div>\r\n<iframe class=\"teads-resize\" data-mce-fragment=\"1\"><\/iframe><\/div>\r\n<div class=\"outstream-video-ad-dummy\">\u00a0<\/div>\r\n<\/div>\r\n<p>\u201cThe Democratic zeitgeist now seems to be higher taxes,\u201d said Brad Dillon, senior wealth strategist at UBS Group AG in New York. \u201cIf you were thinking about selling your business in the next two years, it\u2019s definitely something to think about.\u201d<\/p>\r\n<div class=\"hardwall\" data-position=\"4\">\u00a0<\/div>\r\n<div class=\"softwall\" data-position=\"4\">\r\n<div class=\"tp-container-inner\"><iframe id=\"offer-1-naB3I\" title=\"offer-1-naB3I\" src=\"https:\/\/buy.tinypass.com\/checkout\/template\/show?displayMode=inline&containerSelector=.transporter-item.current+.softwall%5Bdata-position%3D%274%27%5D&templateId=OTZDOMS2XRQ5&offerId=fakeOfferId&showCloseButton=false&trackingId=%7Bjcx%7DH4sIAAAAAAAAAI2QS3OCMBSF_0vWxkmCQHCnggW19VHrKLsQAmbKI4Wgdjr970WmtuNMF70zd3HPd89ZnA_AZAyGIPCnbj0NimoGekCxVOykOAdXQhBBEBkQY0gMiDA0bEicAVSv4SwOFhOcmnnpP5TQNHHMEzvGAokIm0nCLIMmLHY4YrEwcBssLkpUUhRcdNHe3kKud9g8ud7ijnoXwRsty6J7wxTRI0dIUIjaIbXFc_IWqYwoq4kIz9JY8jv_iP-Y62N53opcZUyL9WTs4LExfjnMV35ot5Yjq28QDHXViB7Q33fnXm5Dd_n4TPabtQl-2Y5VkhX6-lI0WdYDnOWKybSob8JJ1rLj4AT_bpBCO1qnq3waKv993u7oPw1K1UZatE9xnxC7jy3Sik0tqlEqCt2y-HytQusMDLFJB8iiA8f-_AKDzqia5wEAAA&experienceId=EX60DEYRNDEL&tbc=%7Bjzx%7Dt_3qvTkEkvt3AGEeiiNNgOPGqimQNB0iTTQRSQiUdmPWd71yfPKssZKdri_K_UrNA1X2dRQ-jyFeSZX5ozgUeoW2eBy0APboy-_qVkZrjh1RKJHnnCr_v7znxb-jsnoOjylU0Z664w9lha1BgkmqDg&iframeId=offer-1-naB3I&url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2020-01-14%2Frich-families-urged-to-sell-their-businesses-before-party-ends%3Futm_medium%3Demail%26utm_source%3Dgetresponse%26utm_content%3DCare%252Bpackage%252Bfor%252B%255B%255Bfirstname%255D%255D%252B%255B%255Blastname%255D%255D%26utm_campaign%3DCare%252Bpackage%252Bfor%252B%255B%255Bfirstname%255D%255D%252B%255B%255Blastname%255D%255D&parentDualScreenLeft=49&parentDualScreenTop=34&parentWidth=1581&parentHeight=772&parentOuterHeight=892&aid=IHFDsFInrJ&contentSection=content-article&pageViewId=2020-03-11-23-01-37-294-pkZJdILC1g5moHGo-551dcf7d1e0eb15ffa638fad9c0ade31&visitId=v-2020-03-11-23-01-37-298-7bQgPmFZpHyKpHyA-551dcf7d1e0eb15ffa638fad9c0ade31&userProvider=publisher_user_ref&userToken=&customCookies=%7B%7D&hasLoginRequiredCallback=false&width=620&_qh=3156389ce2\" name=\"offer-1-naB3I\" frameborder=\"0\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><\/div>\r\n<\/div>\r\n<p>For the owner of a multimillion-dollar company, selling by the end of 2020 could result in a much smaller tax bill than striking a deal in 2021 under new rules. Of course, a new president would need Congress to go along with a tax hike, and that\u2019s hardly a certainty even if Trump is defeated.<\/p>\r\n<p>Nonetheless, the political risks also coincide with excellent conditions for selling.<\/p>\r\n<p>\u201cThis is as good as it gets,\u201d said Marshall Rowe, president for business-owner services at Colony Group, where he advises owners of companies worth about\u00a0<span class=\"\" data-value=\"50000000\" data-original=\"$50 million\" data-symbol=\"$\">$50 million<\/span>\u00a0to\u00a0<span class=\"\" data-value=\"350000000\" data-original=\"$350 million\" data-symbol=\"$\">$350 million<\/span>.<\/p>\r\n<h3 id=\"deal-hunters\">Deal Hunters<\/h3>\r\n<p>U.S. stocks have continued to rise, with the S&P 500 advancing 1.8% this month after surging 29% last year.<\/p>\r\n<p>With the stock market setting\u00a0<a title=\"Big Companies Have Never Dominated the S&P 500 Like They Do Now\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-01-13\/big-companies-have-never-dominated-the-s-p-500-like-they-do-now\" target=\"_blank\" rel=\"noopener\">record highs<\/a>\u00a0almost daily, interest rates near historic lows and the broader economy doing well, owners are getting high valuations for their businesses. The family of the founder of Les Schwab Tire Centers is\u00a0<a title=\"Tire King\u2019s Family Is Said to Weigh $3 Billion Les Schwab Sale\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-12-24\/tire-king-s-family-is-said-to-weigh-3-billion-les-schwab-sale\" target=\"_blank\" rel=\"noopener\">weighing<\/a>\u00a0a sale that could value the Bend, Oregon-based retail chain, with more than 450 locations in 10 states, at more than\u00a0<span class=\"\" data-value=\"3000000000\" data-original=\"$3 billion\" data-symbol=\"$\">$3 billion<\/span>.<\/p>\r\n<p>There are plenty of potential buyers seeking acquisitions.<\/p>\r\n<p>Private equity firms have an unprecedented amount of cash to deploy. Blackstone Group Inc., Carlyle Group LP and other firms have almost\u00a0<span class=\"\" data-value=\"1500000000000\" data-original=\"$1.5 trillion\" data-symbol=\"$\">$1.5 trillion<\/span>\u00a0in unspent capital, the highest year-end total on record, according to Prequin data. Private equity firms executed about\u00a0<a id=\"29646\" title=\"Private Equity Is Starting 2020 With More Cash Than Ever Before\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-01-02\/private-equity-is-starting-2020-with-more-cash-than-ever-before\" target=\"_blank\" rel=\"noopener\"><span class=\"\" data-value=\"450000000000\" data-original=\"$450 billion\" data-symbol=\"$\">$450 billion<\/span>\u00a0of deals<\/a>\u00a0last year.<\/p>\r\n<p>Many super-rich families are also in the hunt, adding to the competition. They\u2019re building out family offices -- mini investment firms set\u00a0<span id=\"0d7e453a-36cd-11ea-90bb-308d99725830\">up to<\/span>\u00a0manage their personal wealth -- and looking for recession-proof businesses to include in their portfolios.\u00a0<a class=\"terminal-news-story\" title=\"Pritzker Private Capital to Acquire Valicor\" href=\"https:\/\/www.bloomberg.com\/news\/terminal\/PUF7S0MEQTXN\" target=\"_blank\" rel=\"noopener\">In July<\/a>, for example, the family office tied to billionaire Chicagoan\u00a0<a title=\"Billionaire Profile\" href=\"https:\/\/www.bloomberg.com\/billionaires\/id\/1879484\" target=\"_blank\" rel=\"noopener\">Tony Pritzker<\/a>\u00a0acquired wastewater treatment company Valicor Environmental Services.<\/p>\r\n<p>When 111 U.S. family offices were surveyed by Fidelity Family Office Services last year, 98% said they expected to maintain or increase direct investments over the next three to five years.<\/p>\r\n<p>Buyers are also coming to the U.S. from abroad. A Qatari-backed firm\u00a0<a title=\"Qatari-Backed Maybourne Completes Montage Beverly Hills Deal (1)\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-12-21\/qatari-backed-maybourne-completes-montage-beverly-hills-deal\" target=\"_blank\" rel=\"noopener\">snapped up<\/a>\u00a0the Montage Beverly Hills hotel last month, while Africa\u2019s richest person,\u00a0<a title=\"Billionaire Profile\" href=\"https:\/\/www.bloomberg.com\/billionaires\/id\/15411413\" target=\"_blank\" rel=\"noopener\">Aliko Dangote<\/a>, plans to diversify his wealth by\u00a0<a title=\"Africa\u2019s Richest Man Plans U.S. Office to Help Diversify Wealth\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-01-09\/africa-s-richest-man-plans-u-s-office-to-help-diversify-wealth\" target=\"_blank\" rel=\"noopener\">opening<\/a>\u00a0an investment office in New York.<\/p>\r\n<figure id=\"2501\" class=\"figure-expandable\" data-align=\"center\" data-id=\"356066472\" data-image-size=\"full\" data-image-type=\"photo\" data-type=\"image\">\r\n<div class=\"image\" tabindex=\"0\" role=\"button\" aria-label=\"Open image in viewer\">\r\n<div id=\"lazy-img-356066472\" class=\"lazy-img\"><img class=\"lazy-img__image loaded\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/igINKa3ZlVOA\/v0\/800x-1.jpg\" alt=\"Key Speakers and Interviews at the Bloomberg New Economy Forum \" data-native-src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/igINKa3ZlVOA\/v0\/-1x-1.jpg\" data-img-type=\"photo\" \/><\/div>\r\n<\/div>\r\n<figcaption>\r\n<div class=\"news-figure-caption-text caption\">\r\n<p>Aliko Dangote<\/p>\r\n<\/div>\r\n<div class=\"news-figure-credit credit\">\r\n<p>Photographer: Wei Leng Tay\/Bloomberg<\/p>\r\n<\/div>\r\n<\/figcaption>\r\n<\/figure>\r\n<p>The decision to sell a family business isn\u2019t made lightly. The process of finding a buyer, agreeing on a price and completing the transaction can take a year or more.<\/p>\r\n<p>Some families also aren\u2019t sure they want to let go of their life\u2019s work. That\u2019s driving investors to make more creative pitches.<\/p>\r\n<p>\u201cWe\u2019ve seen a number of families that are reluctant to give up control immediately but may be willing to sell a minority position first, then after getting comfortable, sell a controlling stake over time,\u201d said Brian Frank, who runs Declaration Partners LP, which manages Carlyle co-founder\u00a0<a title=\"Billionaire Profile\" href=\"https:\/\/www.bloomberg.com\/billionaires\/id\/2398573\" target=\"_blank\" rel=\"noopener\">David Rubenstein<\/a>\u2019s family fortune.<\/p>\r\n<p>\u201cClients are more open right now because the\u00a0<span id=\"0d7e497c-36cd-11ea-90bb-308d99725830\">market conditions<\/span>\u00a0are so good,\u201d said Lisa Featherngill, head of legacy and wealth planning at Abbot Downing, a unit of San Francisco-based Wells Fargo & Co. But \u201cthey\u2019re not going to take the deal until it\u2019s the right deal.\u201d<\/p>\r\n<h3 id=\"ok-boomer\">OK Boomer<\/h3>\r\n<p>In this environment, some business owners are getting offers they\u00a0<a title=\"Link\" href=\"https:\/\/www.youtube.com\/watch?v=SeldwfOwuL8\" target=\"_blank\" rel=\"nofollow noopener\">can\u2019t refuse<\/a>.<\/p>\r\n<p>\u201cThere is an acceleration of a desire to sell,\u201d said Joan Crain, global family wealth strategist at Bank of New York Mellon Corp., citing \u201cclients who were lackadaisical\u201d but \u201care now very motivated.\u201d<\/p>\r\n<p>If conditions change, advisers want to make sure they\u2019re not blamed for failing to warn clients to sell when times were good. That\u2019s particularly true for the many Baby Boomer business owners who are now approaching retirement age.<\/p>\r\n<aside class=\"inline-newsletter\" data-state=\"ready\">\r\n<div class=\"tp-container-inner\"><iframe id=\"offer-0-WNDc4\" title=\"offer-0-WNDc4\" src=\"https:\/\/buy.tinypass.com\/checkout\/template\/show?displayMode=inline&containerSelector=.inline-newsletter&templateId=OTK9NE7VLZ7E&offerId=fakeOfferId&showCloseButton=false&trackingId=%7Bjcx%7DH4sIAAAAAAAAAI2Qy27CMBBF_8VrjGzn5bCjkEB4tFQCVLEzthMsEsckDlBV_feGqLRC6qIjzWLumXs1mg_AlAADkEzjcR0nupqBHjAsk1slL8mNEEQQRA7EGBIHIgydAJLQhea4m4lkMcKZV5TTSQk9DwueBgJLJPfYS1PmOzRlIuSICengNlhejayU1Fx20dEbHo3RKow3m6cHGl0lb6wqdbeGKaIHjpCkELVFap8X5LQ_ImOR0MXpXKYpevAP-Y-5PpSXtSxMzqycrFZusnReljGaYKd1HFh9Z2Bgq0b2gP2eO_PLeh4-R8F2sQsi8Mu2rFJM29uKbvK8BzgrDFOZru_CWdWq4-AM_34ghcH-NVsV8c5M3-dtD__zQGXaSJ_2Ke4TEvSxT1qxqWU1zKS2LRMXfjvU5mCAPeoin7ph8PkFb7_sbuYBAAA&experienceId=EX1CD0P9FUUB&tbc=%7Bjzx%7Dt_3qvTkEkvt3AGEeiiNNgOPGqimQNB0iTTQRSQiUdmPWd71yfPKssZKdri_K_UrNA1X2dRQ-jyFeSZX5ozgUeoW2eBy0APboy-_qVkZrjh1RKJHnnCr_v7znxb-jsnoOjylU0Z664w9lha1BgkmqDg&iframeId=offer-0-WNDc4&url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2020-01-14%2Frich-families-urged-to-sell-their-businesses-before-party-ends%3Futm_medium%3Demail%26utm_source%3Dgetresponse%26utm_content%3DCare%252Bpackage%252Bfor%252B%255B%255Bfirstname%255D%255D%252B%255B%255Blastname%255D%255D%26utm_campaign%3DCare%252Bpackage%252Bfor%252B%255B%255Bfirstname%255D%255D%252B%255B%255Blastname%255D%255D&parentDualScreenLeft=49&parentDualScreenTop=34&parentWidth=1581&parentHeight=772&parentOuterHeight=892&aid=IHFDsFInrJ&contentSection=content-article&pageViewId=2020-03-11-23-01-37-294-pkZJdILC1g5moHGo-551dcf7d1e0eb15ffa638fad9c0ade31&visitId=v-2020-03-11-23-01-37-298-7bQgPmFZpHyKpHyA-551dcf7d1e0eb15ffa638fad9c0ade31&userProvider=publisher_user_ref&userToken=&customCookies=%7B%7D&hasLoginRequiredCallback=false&width=170&_qh=54c8cb177a\" name=\"offer-0-WNDc4\" frameborder=\"0\" scrolling=\"no\" data-mce-fragment=\"1\"><\/iframe><\/div>\r\n<\/aside>\r\n<p>Older owners have plenty of good reasons to unload their businesses now, their advisers say. Many are already worried about the future of their industries, especially the threat of disruption from new competitors or technology changes -- \u201cgetting Amazon-ed,\u201d as Rowe puts it. Aging business owners often realize that a buyer with deep pockets is more likely to have the expertise and resources to keep up.<\/p>\r\n<p>Many Boomers hoped their children would take over at some point, but Rowe and others said that\u2019s happening much less than it used to. Advisers often need to offer a reality check to owners whose children aren\u2019t stepping\u00a0<span id=\"0d7e47e2-36cd-11ea-90bb-308d99725830\">up to<\/span>\u00a0take over. \u201cWe can see objectively that\u2019s not going to happen -- time is running out,\u201d Crain said. \u201cSometimes we have to nudge them.\u201d<\/p>\r\n<h3 id=\"deal-stampede\">Deal Stampede<\/h3>\r\n<p>The 2020 election is one risk among many facing closely held businesses, but it gives advisers more ammunition to persuade clients that they shouldn\u2019t miss the chance for a lucrative exit.<\/p>\r\n<p>If Democrats win the White House and both chambers of Congress, the wealthy could face a number of expensive tax changes. In addition to targeting wealth and capital-gains income, Democrats, including Sanders and Biden, have proposed changes to estate tax rules that would make it harder for the wealthy to pass on fortunes to children, grandchildren and beyond.<\/p>\r\n<p>Democrats could also reverse provisions of the tax overhaul enacted in late 2017. The law boosted many companies\u2019 profits and valuations by slashing the corporate tax rate and creating a controversial 20%\u00a0<a title=\"Private Equity Investors Get Rules on 20 Percent Tax Break (1)\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-01-18\/irs-issues-final-tax-deduction-rules-for-partnerships-llcs-jr2g6v4a\" target=\"_blank\" rel=\"noopener\">break<\/a>\u00a0for owners of many other businesses.<\/p>\r\n<p>Then there are regulatory matters that affect particular industries. Many business owners are fans of Trump\u2019s hands-off approach to issues including environmental and labor rules. A Democrat in the White House would almost certainly seek to reinstate and strengthen regulations that Trump rolled back and wouldn\u2019t need Congressional approval to do so.<\/p>\r\n<p>\u201cIf there\u2019s an administration change, the risks are bigger than taxes,\u201d Rowe said. For his clients, \u201cit\u2019s a combination of those things that is getting them a little spooked.\u201d<\/p>\r\n<p>While it may\u00a0<span id=\"0d7ff902-36cd-11ea-90bb-308d99725830\">feel<\/span>\u00a0far away and unlikely now, a big Democratic victory in November could trigger a stampede of deals as rich clients grab one last chance to exploit the current rules. Estate planners, financial advisers and lawyers said they would expect an extremely busy several weeks after a Trump loss.<\/p>\r\n<p>\u201cIf a Democrat is elected,\u201d UBS\u2019s Dillon said, \u201cit\u2019s going to be a madhouse.\u201d<\/p>\r\n<p><em>\u2014 With assistance by Laura Davison, and Heather Perlberg<\/em><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/section>\r\n<\/div>","_et_gb_content_width":"","footnotes":""},"categories":[10,2],"tags":[],"class_list":["post-687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","category-suggested"],"_links":{"self":[{"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/posts\/687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/comments?post=687"}],"version-history":[{"count":7,"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/posts\/687\/revisions"}],"predecessor-version":[{"id":703,"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/posts\/687\/revisions\/703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/media\/705"}],"wp:attachment":[{"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/media?parent=687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/categories?post=687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nexusbusinessassociates.com\/site\/wp-json\/wp\/v2\/tags?post=687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}