Liquidity Event
The wire clears, and a new set of questions begins: what the money is for, and what the days are for.
The sale of a business you own, or a large part of it. Years of concentrated, illiquid value become cash at a single closing, and the role that organized your life often ends with it.
What changes
Three decisions come with a sale, and most of them are best made before the closing.
Before the letter of intent
Much of the tax outcome is set before a letter of intent is signed. Trust funding and residency are best settled first, and §1202, which can exclude part of the gain on qualified small business stock when its conditions are met, is confirmed early, since it depends on how and when the shares were issued and how long they have been held.
What stays tied to the company
Rollover equity, earn-outs and lockups decide how much of the value stays with the company, and for how long. Shares that become public can be sold on a 10b5-1 plan, a schedule fixed in advance.
Who you are after
The role that organized the days often ends at the closing. The years after are planned along with the proceeds, so the time has a purpose as well as the money.
What it strains, what it draws on
A sale moves more than money. It tends to strain the work and the circles built around the company, and it can strengthen the freedom to choose what comes next.
Strains: the parts of a life this Transition tends to draw down. Draws on: the parts it can strengthen, and that help carry it. Both come from the Human Wealth ontology.
How the ontology maps TransitionsWho works on it
The work is shared across these Services, and coordinated with the attorney, banker and accountant already on the deal. Your counsel stays; we keep the plan in one piece.
Legacy Planning
Shares can move into trust before the sale is agreed, while their value is often lower.
Read moreExit & Succession Planning
The structure is set before the letter of intent, and the proceeds have a plan before they land.
Read moreInvestment Management
The proceeds are invested on a schedule, not in a day.
Read moreTax Planning
The structure is set before the sale, while it can still change the result.
Read moreRetirement Planning
The proceeds are set to pay the household first, and to grow second.
Read more
Common questions
Start with a conversation.
You do not need a balance sheet or a date. Tell us what is changing, and we will tell you plainly whether we are the right office for it.