Typically, most business owners’ wealth is in their business. Because of this, it is important to consider the value of a business when planning for maintaining the owner’s lifestyle and funding their life after business.
Wouldn’t you think Bill would want to know how best to monetize this value for his personal and financial goals?
Surely he would.
With the liquidity event of selling the business comes opportunities to plan. Owners should plan before a transaction occurs. This plan should include, at minimum, to address the following:
- Taxes: what is the optimal structure of a deal in order to net as much as possible.
- Lifestyle: how, if at all, will the owner continue to be involved in the business.
- Deal Structure: is an earn-out part of the transaction; how will that impact cashflow?
- Estate Planning: how should assets be allocated to accomplish tax and legacy goals?
- Retirement Income: how much sustainable, monthly income is need to fund the expected lifestyle?
- Investment Philosophy: how should the owner’s advisor manage assets in order to accomplish their goals as well as fund any projects and/or charitable gifts?
Level Four provides business owners with a proactive menu of services to develop the planning roadmap that makes the most sense for them.1 Each roadmap includes a schedule of activities for each quarter in order to communicate and deliver action plans to implement and maintain the financial plan.
1 Financial planning services are provided by Level Four Advisory Services, LLC.
Level Four Advisory Services and LPL Financial do not offer tax or legal advice. Please consult your tax or legal advisor to discuss these matters