About the Guest(s):
Chad Ettmueller: Chad is with JCR Settlements, a settlement planning firm based in Scottsdale, Arizona. They specialize in structured installment sales and offer annuity products to help individuals design a future payment schedule that meets their unique needs.

Monty Walker: Monty is a CPA with a formal background in accounting. He practices nationally and primarily supports the M&A industry, helping entrepreneurs determine how to keep more funds when selling their company.

Summary: In this episode, Ronald Skelton interviews Chad Ettmueller and Monty Walker from JCR Settlements about structured installment sales and annuity-based products. They discuss how these products can help business owners defer taxes and secure a long-term income stream when selling their businesses. Chad and Monty explain the process of structuring installment sales, the benefits of deferring taxes, and the flexibility of payment schedules. They also highlight the potential for maximizing net sale proceeds and creating generational wealth through these strategies.

Key Takeaways:

Structured installment sales allow business owners to defer immediate capital gains tax obligations by placing a portion of their sales transaction into annuity products.
The IRS cannot tax sellers on the funds they don't take receipt of at the time of sale, so the key is to define the amount to be placed into the annuity and ensure it goes directly from the escrow account to the life insurance company.
Sellers can design payment schedules that meet their unique needs, including deferring the first payment for up to 40 years.
The annuity products can be fixed or index-linked, offering different yield options and potential for growth.
Sellers can protect and pass on their wealth by naming beneficiaries for the annuity payments, including trusts or non-profit organizations.

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Contact Chad on
Linkedin: https://www.linkedin.com/in/chad-ettmueller/
Phone: 770-886-7400

Contact Monty on
Linkedin: https://www.linkedin.com/in/monty-walker-a5735a/
Phone: 940-322-5086
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E183: Chad Ettmueller and Monty Walker Discusses Structured Installment Sales and Annuity Products

How2Exit: Buy, Don't Build - M&A of Small Businesses