Wealth Planning for Business Owners Navigating Sale, Succession, or Retirement
Your business is likely your greatest financial achievement—and may be your largest asset. At Mercer Advisors, we help business owners unlock value, protect wealth, and transition confidently into retirement or new ventures with tailored planning around succession, tax, and long-term stability.
Why Business Owners Need Personalized Financial Guidance
Running a business influences every aspect of your financial life, from your estate planning to your tax obligations. Without a tailored financial plan, many business owners miss valuable opportunities for tax efficiency and wealth preservation, often resulting in higher tax liabilities and less control over long-term financial goals.
A financial advisor for business owners provides personalized strategies that account for the complexities of owning and managing a business. These include optimizing tax strategies, ensuring compliance, and aligning your business finances with your personal wealth objectives.
At Mercer Advisors, we take a holistic approach by serving as a strategic partner. We work collaboratively with your CPA, tax professional, and attorney to create a cohesive financial plan that simplifies decision-making and seeks to maximize financial outcomes.
Succession and Exit Planning
Built Around Your Vision
Planning for the future of your business is essential, whether you’re stepping back, transitioning leadership, or preparing for unforeseen circumstances. Our approach to succession and exit planning helps ensure that your unique vision for your business and legacy is honored.
Understand Your Business Succession Plan Options
Every business owner’s journey is different, and so are the reasons for planning an exit. Whether you’re retiring, selling, or transferring ownership due to unforeseen events, understanding your options is crucial. From sole proprietorships to corporations, the structure of your business will often determine the optimal path forward. Strategic planning in partnership with a wealth manager helps to comply with legal requirements, maximize asset values, and enable a seamless transition.
Structure a Buy-Sell Agreement or Leadership Transition
A well-constructed buy-sell agreement can pave the way for a smooth transition, protecting both your business and your legacy. Whether you’re transferring ownership to family members, employees, or external buyers, it’s essential to address tax implications, leadership continuity, and operational stability. This step helps ensure that your business thrives even as its leadership changes.
Consider Your Legacy Goals
Your succession plan should reflect your long-term vision, including how family members or key employees will be involved. Thoughtful estate and succession planning for small business owners can help address the complexities of blending personal goals with business continuity.
Specialized Services for Business Owners
- Integrated Advice for Personal Wealth & Business
- Business Succession Planning
- Pass-Through Entity Tax Coordination
- Entity Structure Assessment
- Customized Exit Strategies
- Tax Optimization at Exit
- Retirement Planning and Transition Support
- Post-Sale Investment and Cash Flow Planning
Solutions Tailored to Business Owners Like You
Owning a business brings unique opportunities—and complex financial challenges. At Mercer Advisors, we offer specialized solutions designed to help business owners like you protect your wealth, optimize your tax strategy, plan for succession, and transition confidently into the next chapter of your life.
Tax Planning Strategies for Business Owners
Treating taxes as a proactive, year-round process rather than a seasonal chore is essential for reducing liabilities and securing financial stability. Optimizing entity structures, leveraging deductions, contributing to retirement plans, and maintaining impeccable records create a sustainable approach to long-term financial success. Here’s what you need to know to mitigate a tax hit:
Optimize Tax Deductions, Timing, and Entity Structure
Maximize eligible tax deductions and credits by strategically timing expenses and evaluating the most tax-efficient entity structure for your business. Understanding applicable tax laws and regulations is key to achieving substantial savings.
Coordinate Tax Compliance
Seamlessly manage tax filings for pass-through entities, payroll taxes, and employment tax obligations to avoid penalties and ensure compliance. A comprehensive tax strategy helps streamline operations and reduces administrative burdens.
Reduce Tax Burden at Exit
Prepare for the sale of your business by implementing strategies to minimize your tax burden such as uses tax credits, structuring the transaction efficiently, and planning for estate considerations. By reducing taxes on the proceeds, you can increase after-tax income and preserve wealth for future goals.Frequently Asked Questions
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It’s never too early to start creating a business succession plan. Ideally, you should begin planning as soon as possible, whether you’re years away from stepping back or considering retirement.
Starting early allows you to account for unforeseen circumstances, help ensure a smooth leadership transition, address tax implications, and align the plan with your long-term business and personal goals. Early planning also provides flexibility to adapt to changes and maximize the value of your business at exit.
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To minimize taxes in a buy-sell agreement, consider strategies like structuring the transaction as an installment sale to spread tax liability, or using stock redemptions or cross-purchase agreements for tax efficiency. Be sure to consult a tax advisor and/or wealth manager to help ensure compliance with tax laws and to align the agreement with your overarching financial goals.
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A retirement plan is essential when selling your business. While the sale may provide substantial financial resources, a comprehensive retirement plan helps ensure those resources are effectively managed to replace the income from business operations, diversify investments to mitigate risk, and address both lifestyle and estate planning considerations. Sole proprietors and pass-through entity owners are eligible to contribute as much as $69,000 per year to a Solo 401(k) or SEP IRA, offering both immediate tax benefits and the opportunity for tax-deferred investment growth.
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Tax strategies for sole proprietorships and pass-through entities must address unique challenges like fluctuating deductions, inflation-driven costs, and changing tax laws. A few strategies to help minimize your overall tax burden include:
- Entity Optimization: One of the most effective ways to reduce taxes is through entity selection. For example, transitioning from a sole proprietorship to an S-Corporation can save significantly on self-employment taxes. By paying yourself a reasonable salary and distributing remaining profits as dividends, you can reduce taxable income while staying compliant.
- Section 179 Deduction: Section 179 offers an opportunity for immediate tax relief by allowing you to deduct up to $1.25 million in qualifying business assets, such as vehicles, technology, or office upgrades, instead of depreciating them over years. Planning major purchases and prioritizing them before year-end can maximize savings.
- Retirement Plan Contributions: In 2025, sole proprietors and pass-through entity owners can contribute up to $69,000 annually to a Solo 401(k) or SEP IRA, providing tax-deferred growth and immediate tax deductions.
Business Owner Planning Checklist
Preparing to sell or transition your business requires careful planning and coordination. By addressing these key steps early, you can help maximize your business’s value, minimize tax impacts, and build a strategy that supports your personal financial goals after the sale.
