Harvesting the rewards of a successful business
Think back to when you first started your business. You came up with an idea for a product or service, perhaps incubated it in your garage, mortgaged your home or cashed in your 401(k) to build a successful business by working hard and making smart decisions.
Today, your business has matured and grown in value, but you’re at a point where you either can’t or don’t want to work much longer. Maybe you’re running your company as a “lifestyle” business, and want to unlock the wealth tied to your company. Regardless, it’s time to have an exit strategy.
There are several potential options to choose from. You can transition the business to your family, or a trusted person who may be at the right maturity and has significant experience at your company. You could also transition the business to your employees (ESOP). Or you could sell your business, in part or in whole, to the public (IPO), to another company or to a private equity firm with your industry experience.
Deciding when and how to exit your business is complex and intricate. You should plan not only for the ideal scenario, but for the worst-case as well. A sobering fact to consider: According to the Exit Planning Institute, 50% of business exits are involuntary, forced by external factors we call the five D’s – death, disability, divorce, disagreement or distress. It’s imperative to have an exit plan in place.
By engaging our experienced team at Chartwell AMG with Raymond James Investment Banking, you’ll leverage our cumulative knowledge gained over years of successfully guiding entrepreneurs through this major transition. We’ll assist you in establishing the fair market value of your business, facilitating and structuring the deal, and applying tax mitigation and estate planning strategies to the resulting proceeds. It’s the outcome you’ve earned after all your hard work.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
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