Getting a Jump on Liquidity Planning
Although he has no immediate plans to retire, Jim, the 52-year-old sole owner of a successful engineering firm, has increasingly been fielding inquiries from investment bankers sounding out his interest in selling the business. While the time doesn't seem right to sell, he has begun to realize that in two or three years he likely will be ready to exit the business. Knowing that the proceeds from a sale will exponentially increase his net worth, Jim turned to Harris myCFO for some tax and estate planning advice to prepare ahead.

Jim worked with Harris myCFO's multidisciplinary team to develop and put in place long-range investment strategies, as well as tax structures that took advantage of the relatively low current valuations of his equity in the company. In addition, our estate planning specialists created gifting schedules and established trusts for his two children and infant granddaughter. This allows him to remove a large portion of the anticipated sale proceeds from his estate, ensuring that his wealth will be transferred to his heirs, while minimizing taxes.

While most entrepreneurs address these concerns at the time of the transaction, early planning, together with the expertise and resources of Harris myCFO, not only gave Jim great peace of mind, but also yielded significant tax and estate planning benefits that would have been significantly diminished had he waited until he was ready to sell.