Owner Scenarios
Every business owner’s story is unique, but the financial hurdles are common. Here’s how we help solve them.
The Tax Burden
Profile: $4M revenue professional services firm owner
Problem:
The owner was pulling $600,000 annually from the business but losing over $250,000 each year to taxes. Their CPA was filing returns but not proactively planning.
Solution:
We restructured compensation, established a defined benefit retirement plan, and coordinated with their CPA to layer in tax-efficient strategies.
Result:
- Reduced annual tax liability by $180,000
- Created an additional $75,000/year in retirement savings
- Freed up capital to reinvest outside the business
The Liquidity Challenge
Profile: $6M revenue manufacturing company
Problem:
Nearly 95%
of the owner’s net worth was tied up in the business. The company was strong, but the owner had little personal liquidity and worried about risk exposure.
Solution:
We designed a
liquidity plan that allowed the owner to systematically pull
$250,000 per year from the business without constraining growth. We also built a diversified personal investment portfolio outside the company.
Result:
- Established a personal liquidity reserve of $1M over 4 years
- Reduced concentration risk by diversifying assets outside the business
- Gave the owner confidence that their personal finances were secure, regardless of business fluctuations
The Exit & Succession Roadmap
Profile: $12M revenue family-owned distribution company
Problem:
The founder was approaching retirement but had no clear exit strategy. Family members were involved in the business, but succession and estate plans were unclear.
Solution:
We developed a 5-year succession plan that combined pre-sale tax strategies (QSBS and a charitable trust) with a family governance structure. We coordinated with their attorney to update buy-sell agreements and trust documents.
Result:
- Increased after-tax proceeds of the planned sale by $3.5M
- Created a family giving plan that aligned with their values
- Established a governance process to reduce conflict in the next generation
Want to unlock more from your business and finances? We’ll show you how.
We want to know your needs exactly so that we can provide the perfect solution. Let us know what you want and we’ll do our best to help.
