Case Study #2: Maximizing Sale of a Business
By combining smart tax and estate planning strategies with financial planning, Global View helped this couple maximize the sale of their business.
Challenge: Using the Sale of a Business to Fund Retirement
Our clients, a couple both in their late 50s, had spent three decades building a successful civil engineering company. Now, they realized it was probably time to sell, as this was their biggest asset. While they owned a home and both had retirement accounts, the majority of their net worth was tied up in their business. They were working with professionals to help them sell the business, but wanted help managing the proceeds after the sale.
They found Global View online. Through an initial assessment and meetings, we listened to their concerns. We learned about their goals and the fact that they both had hoped to retire early, but were unsure if that would be smart. They had three children, two of which were successful, but one that was struggling financially. They helped this son with many of his routine bills, but it was a source of stress and tension in the family.
We worked with them to collect and organize their information, which we then analyzed. We came up with a strategy:
- Preparing a full comprehensive financial plan, to create a roadmap to the future they envisioned as well as a clear action plan
- We brought our in-house accountant in to help brainstorm on tax efficient way to structure the sale of their business
- After the business was sold, we helped them invest that money to help preserve that capital and grow it conservatively
- We went through the estate planning process with them, using our in-house attorney
- We helped them determine the best time to file for social security
- We helped them figure out a strategy to use a Trust to help minimize income taxes
- We helped them brainstorm and implement a way to help their son without creating dependence
These actions were done over time, with each step being reviewed and agreed on with the client prior to implementation.
The couple are now mostly retired, with the husband doing occasional consulting by choice for the new owner of the business. Frequent meetings and calls with Global View keep them informed and abreast of their progress. We continue to fine tune various aspects of their financial situation to help take advantage of tax strategies that can help them improve their results going forward.