Deciding how to leave your business is a major life event. As a professional in New York, you face a complex market in 2026. Interest rates have stabilized and private equity firms are active again. You must choose between a clean break and a phased departure. Each of these paths offers different rewards and risks for your wealth and your legacy.
Will a full exit maximize after-tax liquidity?
A full exit allows you to sell 100% of your company. This path offers the most certainty. You lock in gains at today’s valuations and decrease future risk. In New York, this requires heavy tax planning. Because the state and city tax capital gains as ordinary income, your combined state and local tax rate alone can exceed 14.7%.
When you add federal taxes and the Net Investment Income Tax, your total tax bill could take more than 38% of your proceeds. However, a total sale protects you from a sudden market downturn. Taking your chips off the table now provides the ultimate peace of mind.
How does a partial sale protect your equity against volatility?
A partial sale, often called a recapitalization, involves selling a portion of your company while keeping a second bite of the apple. You receive significant cash now but stay involved to grow the remaining share. This strategy reduces your personal risk while letting you profit from a buyer’s resources.
Private equity buyers are hungry for deals. However, strategic competitors often pay higher prices because they can merge operations to save money. By rolling over equity, you align with sophisticated partners and hedge against inflation.
Why have a specialized counsel for this transition?
Regardless of your choice, you need a skilled M&A attorney. These experts do more than just draft contracts. They help protect your interests during due diligence and shield you from future lawsuits. An attorney helps ensure the buyer does not bury hidden liabilities in the fine print. In a high-stakes market like New York, professional legal guidance turns a risky gamble into a secure financial victory.