Brett:

I appreciate that, and so one of the biggest challenges with folks who are selling, starting a startup for 26 million-selling for 300 million in state tax challenges, and capital gains tax challenges. What's the biggest frustration for you and or your clients when it comes to selling highly appreciated assets and lack of, let's say, in the real estate world, you have at least a 1031 Exchange, which you can trade like-kind investment property for other like-kind of investment property. But what's the biggest frustration when it comes to like the M&A deals because 1031 have been restricted down to just investment property? Any thoughts on that?

Bharat:

Great question, Brett. From what I have seen is poor planning, and specifically poor tax planning. They love to hear that their company is selling for 300 million or half a billion dollars or what have you. But when they have to write a check to Uncle Sam, or I should say they when they have to write multiple checks to Uncle Sam at the state level at the federal level, they are not very happy about it, and that is mostly because they haven't really planned it out.

Brett:

I couldn't agree with you more. We always say want to pre-plan your exit plan first, right? Or before you sell the asset, you separate the two and also talk about the emotional part of it, right? Because people it's their baby, it's their life work. It's their future legacy for their wealth and their family, and sometimes when those two collide, and it's last minute, and sometimes we get calls from folks like, we're closing this $25 million deal in two weeks, and we've learned about what you do for the first time and, and it's like so like, well we can work under a fire drill, but no one likes to do that, and these things we have to set up prior to so just kind of give us that take up, advising people separate the two, prepare your exit plan first, and then go to market and sell and get caught up and all of what is very intense negotiation.

Bharat:

The analogy that I give to people is you don't just wake up one day as a senior in high school and say, I want to go to Stanford tomorrow. It doesn't work like that. Unless you know you're a genius with a shitload of money, you can just cut a check even then you can't get into Stanford, you have to need to prepare for your High School Exit, if you will, a couple of years ahead. Similarly, if you're exiting a business or looking to sell it, or looking to buy one you need to be planning and prepping at least a couple of years ahead.

Brett:

It's so sick and I love how concise you are the answers you just get right to the point I imagine that's probably one of your gifts that you've been given right that you just cut it down to the exact what needs to be done and what needs to be heard, and so I love the way you put that you don't just wake up and senior in high school and say you want to go to Stanford. It's All right, it's like in junior high, your parents are already talking about how you're going to be going to college, and you're going to be going to college, and this is why you're going to college and they're going to be telling you and you prepare for that and you're getting into high school, you're taking the exams, you're doing the LSAT prep work, the ACC prep work, you're doing all of these little things to prepare for this test, your junior-senior year. To be able to go to this four-year university, and then we get on the other side, and we're building these companies, we're going 100 miles an hour, and you're going, you think you're gonna have a great exit plan or tax plan if you're not doing the prep work. What's the best way, I guess, to get the attention of the entrepreneur, or even the person who has a lot of cryptocurrencies and has hit. Let's say, either the cryptocurrency lottery who has done very well and investing in that, what's the best way to get their attention to actually take action.

Bharat:

Most people who work for large companies have large chunks of stock options, and they have no idea that there are advisors like you who are available, who can help them with tax planning and deferring taxes, and there are all kinds of nuances, and all kinds of specialized advisors that can help them with things, and that is probably because they many times look at small business owners, so advisors are not the best light, and that is to their peril. Advisors like yourselves, attorneys, and other CPAs or, Tax Attorneys, can help them save a lot of money. They need to start doing their homework and their diligence on advisors, that when I am pulling the trigger, who am I going to be calling in? Kind of almost like dating. You don't just, not everybody is lucky to find their high school sweetheart. I mean, you gotta kiss a lot of frogs, start kissing frogs?

Brett:

Very well said, we like to say what the Deferred Sales Trust, it's kind of like a marriage, in a sense, right, and it's long terms, a third party, unrelated trustee, that's what we saw earlier, capital gains tax solutions, and it's like, this is something that we're gonna have to get to know each other and get comfortable with. Ideally, again, we're planning, you're talking with clients, you're doing the due diligence on the structure and the legality on how and where the funds can be invested. We're trying to map out a vision for your future of your wealth, and all these little pieces, and it's kind of like a Rubik's Cube, you have the blue side, the yellow, the red, the green, and you want to do your best to kind of line this up. But if it's all thrown again, against the wall last minute, guess what, it's probably all of these things are gonna be lined up, and it's going to be some frustration. We want to, we're constantly encouraging our clients and potential clients to plan and pre-plan.

Unfortunately, got started late, and we're I know, we're just starting on this conversation. We're actually going to do a two-part series for our listeners who are out there, and we're going to go into even more things with NFT's and cryptocurrency and estate planning and valuation. I'm going to actually go, I'm going to have Paret back and about a week or two, probably two weeks. This is going to be an intro to that. But I do want you, everyone, to know that he has an amazing YouTube Channel, and it's What's It Worth?. Which is a trademark, which is really cool, and he searched on YouTube, and you can find that channel again, What's It Worth? on YouTube to check that out. Any last parting words for our listeners, before you come back for part two and maybe two weeks?

Bharat:

Exit Planning, Brett is just like anything else. It's like when you're buying a house. There's a process that you go through people who are successful at it, they have a process. When you are looking to get into college or when you're applying for that job, there's a process around it. Similarly, Exit Planning is very much a process, and advisors and consultants like you are really the keys to having a successful and profitable exit you don't want to be getting $100 million and cutting 60 million to Uncle Sam that doesn't feel good. Give Uncle Sam his share, but try to minimize it as much as you can.

Brett:

We couldn't agree more and so you can learn more at CapitalGainsTaxSolutions.com By the way, if you want to learn about what we're doing, how we're helping our clients, and we will have brought back on about two weeks in so thanks so much for watching this episode on YouTube or listening to on iTunes. Please Rate, Review, Subscribe, and Please Share this with somebody who's selling a business or needs an evaluation who's selling cryptocurrency, and is looking at large capital gains taxes are looking for a great m&a advisor that you can connect with and or do an evaluation with Bharat Kanodia. I'm still working on that last name. I have to apologize for that. But I think that is the rest of the show and I look forward to connecting with everybody here again soon and looking for the second part, the full episode in about two weeks. Thanks, everybody.