The Living Buyout

There are many advantages available to those who take the initiative to investigate both traditional and non-traditional strategies related to the purchase or sale of a business.

We may be able to show you how you can purchase a business that may not have been possible using traditional financing alternatives. Or if you are the seller, we may be able to show you a method of transaction that could result in substantial benefit to you.

Preparation and planning is best done well in advance of the transaction. If you are considering the sale or purchase of a business in future years, call us now.

Regards,

Keith Hatton CFP, CLU, CH.F.C., TEP, RHU

By planning ahead with the seller, purchasing the business can not only be much easier for the buyer, but also benefit the seller. Call Hatton Financial now to find out how you can buy or sell a business more intelligently.

"If a company is buying out a shareholder, the Living Buy-Out should be carefully examined as an option because there could be significant cash savings to the company in financing the buy-out in this way."
- Alberta Tax Lawyer

"After months of scrutiny amongst shareholders and advisors, we adopted "the Living Buyout" to purchase shares from retiring shareholders. In the process, we saved hundreds of thousands of dollars over prior approaches taken to fund similar buyouts."
- CMA and Controller of Canadian Engineering firm

Purchasing a business in a traditional manner provides few alternatives. Purchasers either:

use existing cash;
borrow funds;
sell assets;
pay out the seller over time.

“Fifty percent of businesses fold when the owner retires. Unfortunately, in most situations, there are children or employees who could have taken over the business, but no one showed them how.”

The Hatton Living Buyout minimizes your initial and ongoing purchase capital requirements, thereby providing a greater opportunity for the future success of the business.

Minimize Risk. Maximize Opportunity

The more successful the business becomes, the more difficult it becomes to find a buyer with sufficient capital. Even when the seller would prefer to retire, sellers are generally required to remain on to assist through a transition period. If an acceptable purchaser cannot be discovered, the business may have to be sold in pieces with a corresponding decrease in value or the seller remains on with the business well into his/her intended years of retirement.

The Hatton Living Buyout lessens tax burdens and ensures maximum financial gain from the sale of the business.
Maximum Value.
Intelligent. Safe.

THE MILLION DOLLAR BUSINESS
Traditional Sale/Purchase vs. Living Buyout Example

TRADITIONAL LIVING BUYOUT*
	5% Financing	Immediate	5 Year Plan
	$225,000 $225,000 $225,000 $225,000 $225,000	$185,000 $185,000 $185,000 $185,000 $185,000	$130,000 $130,000 $130,000 $130,000 $130,000
TOTAL	$1,125,000	$925,000	$650,000
NPV 5%	$974,132	$800,953	$562,831

*Total of all payments returned to seller in addition to sale price.
The above numbers assume current rates of return and not guarantees of future results.
Speak to us for more detailed information.

The Living Buyout

Minimize Risk. Maximize Opportunity

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