Step away from your business without selling it short.
For owners who are ready to retire but don't want to wait years for a buyer, take a lowball offer, or lose a large share of the sale to capital gains tax.
20 minutes. If nothing fits, we'll say so.
- 01 Step back in about 3–4 months
- 02 Keep the economic benefit of 90%+ of the business's value
- 03 $3M+ business value
Every exit path looks like a loss.
You've built something valuable. But a traditional sale can take years, often means accepting less than the business is worth, and can trigger capital gains tax of 20–40% of the proceeds once federal, net investment income, and state taxes are added up. Selling also means handing your company, employees, and customers to a buyer who may not share your values.
So many owners just keep working, long after they wanted to stop.
A different approach
| Traditional exit | Alternative Exit |
|---|---|
| Wait years for the right buyer | Step back in about 3–4 months |
| Accept the offer you can get | Keep the economic benefit of 90%+ of the value |
| Large capital gains bill at closing | Transfer structured to avoid capital gains at transition |
| Lose control immediately | A trusted operator runs day-to-day operations |
| Lump sum, then taxes | Ongoing income from the business |
How it works
Transfer into a trust structure
The business moves into a specialized trust arrangement, which also removes it from your taxable estate. You keep the economic benefit of 90% or more of its value.
A trusted operator takes over daily operations
Employees, customers, and relationships stay intact, and you keep strategic oversight.
Profits accumulate in a tax-advantaged vehicle
Business profits grow inside the structure instead of being taxed each year as ordinary income.
You receive retirement income
Distributions are structured so they are not treated as taxable income under the provisions governing the arrangement.
If the right offer comes later, you're ready
A future sale under the structure is designed to avoid capital gains tax.
Who it's for
You may be a fit if
- Owner of a privately held, profitable operating business
- Business value of $3M or more, with substantial built-in gains
- Age 55–70 and wants to exit within a year
- No ideal buyer identified
- Open to a trusted operator managing the business
- Prefers ongoing income to a one-time lump sum
Key benefits
-
Retire in months, not years
Most owners step back within 3–4 months of starting.
-
Avoid a capital gains bill at transition
The transfer is structured so it doesn't trigger a taxable sale.
-
Tax-advantaged growth
Profits compound inside the structure.
-
Retirement income
Distributions are structured to be non-taxable.
-
Business continuity
Your team, customers, and reputation are protected.
-
Estate planning
The trust structure removes the business from your taxable estate.
Alternative Exit in practice
The owner of a $10M manufacturing business transferred it through the Alternative Exit structure and stepped away from daily operations. On a traditional $10M sale with a $2M basis, capital gains taxes would have been about $3.2M.
Questions
Do I have to sell my business?
No. You keep the economic benefit of the business while an operator runs it.
Who runs the company?
A qualified operator manages day-to-day operations. You keep strategic oversight.
What if a buyer makes a great offer later?
You can still sell. A sale under the structure is designed to avoid capital gains tax.
Ready to step back? Let's see if this fits.
20 minutes. If nothing fits, we'll say so.
Alternative Exit involves trust and insurance structures. Tax outcomes depend on individual facts, proper implementation, and current law. This is not tax, legal, or investment advice.