Paying off debt provides a guaranteed return equal to your interest rate - if you owe 6.5%, debt elimination is equivalent to a risk-free 6.5% investment. Compare that against projected returns from reinvestment options, adjusting for risk and taxes. For sellers in high tax brackets, the after-tax return comparison often favors debt payoff unless the reinvestment vehicle offers significant tax deferral or appreciation upside.
From the seller playbook: Post-Sale Capital Deployment
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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