From 27% to 11%: Cutting $4.2M in Taxes on a $25M Business Sale with Nick Saloom and John Blanchard
About this episode
This episode discusses how business owners can reduce taxes on a sale through proactive planning, featuring a case study of a $25 million business sale.
In this episode of the M&A Launchpad Podcast, hosts Casey Minshew and Feras Moussa sit down with John Blanchard and Nick Saloom of Engineered Tax Mitigation to unpack how business owners can dramatically reduce the tax hit on a sale. John and Nick explain how they work alongside a seller's existing CPA and legal team to compress effective tax rates, why depreciation recapture catches so many sellers off guard, and how getting involved years before a sale can also boost a company's valuation. The conversation includes a real case study: a $25 million business sale where proactive tax planning took the blended tax rate from 27% down to 11%, putting an extra $4.2 million in liquid proceeds in the sellers' pockets. In this episode, we discuss: Why tax planning needs to start years before a liquidity event, not at closing How personal expenses run through the business quietly suppress EBITDA and valuation Why depreciation recapture (Section 1245/1250) surprises sellers who assume they only owe capital gains A real case study: compressing a $25M sale from a 27% blended tax rate to 11% Deferred Sales Trusts vs. Deferred Sales Trust Plus, and how they compare to a compressed-rate…
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