1. Identify Owner Objectives
Universal Objectives:
- When do you want to leave the business?
- How much cash do you need?
- To whom do you want to transfer the business?
- Family?
- Co-Owner?
- Key Employee’s?
- Outside Party?
Other Considerations:
- Leave a legacy?
- Never “retire?”
- Philanthropic works?
2. Quantify Business and Personal Resources
Universal Objectives:
- Provides a baseline value.
- Measures business and personal resources.
- Allows you to monitor progress toward stated objectives.
3. Build and Protect Business Value
Universal Objectives:
- Grow business value.
- Reduce income taxes upon sale of business.¹
- Protect assets from business and personal creditors.
- Motivate & keep Key Employees & Management focused.
- Create ability to sell the business.
4. Sale of Ownership to a Third Party
Universal Objectives:
- Cash at closing.
- Reduce Financial risk.
- No family succession issues.
- Speed of exit.
5. Transfer Ownership to Insiders
Universal Objectives:
- Achieves Exit Objectives of:
- Transferring ownership to a family member.
- Selling to Key Employee or Key Employee Group (KEG).
- Transitioning ownership to a Partner(s).
- Motivates and retains key employees.
- Reduces tax burden.
- Reduces risk and increases amount of money received.
6. Business Continuity: Lifetime & At Death
Universal Objectives:
- Objectives can still be achieved if you don’t survive.
- Retain ownership and control even if co-owner departs.
- Can force non-contributing owners to leave.
- Helps ensures survival of the business for the benefit of others.
- Helps achieve the goal of family receiving value of your interest.
7. Personal Wealth and Estate Planning
Universal Objectives:
- Preserve wealth, minimize taxes using both lifetime and death planning tools.
- Integrates lifetime exit objectives with estate plan.
- Estate planning becomes part of business planning.
¹ Guardian, its subsidiaries, agents, and employees, do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.