Sessions:
Maximizing value to the seller during an M&A process entails three key factors
1. Maximize the Adjusted EBITDA
2. Maximize the Multiple
3. Minimize Taxes
Most sellers focus on the Multiple. Some consider the EBITDA. Few strategize for Taxes. It is indeed possible to sell a company and pay zero capital gains taxes. Minimizing taxes can be worth as much as a turn of EBITDA or more.
While there are many tax tactics, the most powerful is Section 1202 (Qualified Small Business Stock Exemption). In this session, we will discuss what QSBS is, how to take advantage of it, what the common obstacles are and how to overcome them. It is a commonly available tool to all IT MSP owners. All it requires is advance planning.
We will also share real world case studies where IT services companies sold and were able to avoid capital gains taxes. We will also layout a roadmap that allows other IT MSP owners to replicate this success.
Jay Jung
Jay is the Founder and Managing Partner of Embarc Advisors. He is a former Goldman Sachs Investment Banker and McKinsey & Company Consultant who has completed over $50 billion in transactions, including marquee transactions such as the sale of Yahoo, the sale of MuleSoft, and the sale of SanDisk.
Jay founded Embarc Advisors under the “Jerry Maguire” principals – on the belief that it is possible to provide first class financial services to clients, while simultaneously providing meaningful work experiences and a sense of enjoyment to Embarc team members. As a result of his vision, and his determination to operate with unwavering integrity, he has earned the trust of countless Founders, CEOs, and other business leaders, who have become valued Embarc clients. He has also been able to assemble an unparalleled team of some of the brightest, and most passionate and effective finance professionals.
Outside of his entrepreneurial and leadership responsibilities, Jay continues to partner directly with startups and middle-market firms as a trusted advisor In M&A, capital raise and growth strategy. His work has been covered in Fortune, Entrepreneur, Forbes, Startup Nation and others.
Jay’s experience spans countless industries, and he has a keen understanding of his clients’ needs as a result of the shared experience of a life of entrepreneurship. In fact, in addition to Embarc Advisors, Jay also co-founded a technology startup that raised capital from Softbank and other VCs. Jay’s educational accomplishments include a Master’s in Business Administration from the Wharton Business School of the University of Pennsylvania. Based in San Francisco, California, when he’s not working or sleeping, Jay spends most of his time frequenting restaurants with good food and drinks. As a gastronome who also loves to travel, he intentionally ends up in destinations that satiate his cravings for incredible cuisine, wine, sake, and cocktails
Sessions:
Maximizing value to the seller during an M&A process entails three key factors
1. Maximize the Adjusted EBITDA
2. Maximize the Multiple
3. Minimize Taxes
Most sellers focus on the Multiple. Some consider the EBITDA. Few strategize for Taxes. It is indeed possible to sell a company and pay zero capital gains taxes. Minimizing taxes can be worth as much as a turn of EBITDA or more.
While there are many tax tactics, the most powerful is Section 1202 (Qualified Small Business Stock Exemption). In this session, we will discuss what QSBS is, how to take advantage of it, what the common obstacles are and how to overcome them. It is a commonly available tool to all IT MSP owners. All it requires is advance planning.
We will also share real world case studies where IT services companies sold and were able to avoid capital gains taxes. We will also layout a roadmap that allows other IT MSP owners to replicate this success.
