Family Business Preparing for Exit
$30MM–$75MM Net Worth
Important Disclosure:
The following is a hypothetical illustration provided for informational purposes only. It is not based on an actual client, does not describe a real client experience, and should not be interpreted as a testimonial, endorsement, or guarantee of future results. Any resemblance to actual persons or situations is coincidental. Planning outcomes will vary based on individual facts and circumstances.
Profile Overview
The Situation
A couple in their early 50s owns a commercial real estate enterprise developed over multiple decades. A substantial portion of their net worth is concentrated in the business.
The family includes two adult children who are not expected to assume operational control. As a result, the owners may begin evaluating future transition or exit scenarios. External interest from potential buyers or capital partners may also prompt additional planning considerations.
Common Planning Considerations
- Preparing the business for a potential future sale or recapitalization
- Identifying operational, legal, or financial areas that may require review prior to a transaction
- Evaluating whether future proceeds could support lifestyle, philanthropic, and multi-generational objectives
- Assessing tax implications associated with a potential liquidity event
Key Questions
- How can the business be positioned for a potential future sale or transition?
- What structural, financial, or operational items may need to be addressed in advance of a transaction?
- To what extent could potential proceeds support lifestyle and inter-generational objectives?
- What planning strategies may be available to address the tax implications of a liquidity event?
Coordinated Planning Considerations
A structured planning process may include aligning business, personal, and estate elements within a unified framework. Areas of focus may include:
- Multi-Year Planning: Establishing a timeline that considers business readiness, personal objectives, and market conditions
- Advisor Coordination: Integrating input from legal, tax, and transaction professionals
- Estate and Transfer Planning: Reviewing structures that may be implemented prior to a liquidity event