My view: Planning to sell your business? Make sure your assets are protected - Business Monday - MiamiHerald.com

Congratulations! You’ve sold your business and the ink has finally dried on your check. Now what? You may have a very specific plan for that money or you may not, but either way it is crucial to protect it. Why? We have often seen the purchaser run the business into the ground and try to recover some or all of the purchase price by claiming misrepresentations were made. If those proceeds are properly protected, there will be no “post-sale price reduction.”

There is a great deal of misinformation that exists surrounding offshore asset protection, when in reality it could be your best option. It’s important for South Florida business owners to educate themselves on the differences between onshore and offshore planning and to understand the facts versus the myths.

Myth: Offshore trusts are illegal.

Truth: It is entirely legal. The key to effective asset protection planning is the word “advance.” As long as this type of planning is undertaken in advance of a creditor appearing on the horizon, it is 100 percent legal to protect yourself. Unfortunately, many people first seek to protect their assets after they have been sued or otherwise incurred an obligation. In such circumstances the planning options are significantly narrowed because of fraudulent transfer laws (in all states) that permit a court to set aside transfers made at the “eleventh hour.”

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For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.