Building A Business Exit Strategy

Now in their late 50s, Roger and Juliana Moore started with “nothing.” Thirty-five years, four children and six grandchildren later, they today own a thriving construction business.

Not sure they want to retire completely, the Moores do know they want to lighten their workload, travel more and ultimately build a new home near their youngest daughter.

While they’re considering turning the business over to their two children who currently work for the company, they also want to make sure their other children are treated equitably, that the business thrives – and that they have sufficient income to meet their needs.

The only problem is, they have no idea how to accomplish all of this.

That’s why they decided to talk to their Contango advisor about their options.

In speaking with their advisor, Juliana and Roger confirmed that

• They want to change their involvement with their business within the next five years.
• They have yet to decide between transferring ownership to family members and selling the company outright.
• They have set aside some funds, accumulating on a tax-deferred basis in a retirement plan, but are unsure whether that money will enable them to maintain their current standard of living during their retirement years.
• They would like to spend more time with their grandchildren.
• Their attorney and accountant have urged them to gift and create structures. But the anticipated results have not been quantified, leaving them wondering how the changes could affect their lifestyle
• They are concerned about protecting their wealth – and about the best way to pass it on to their children and grandchildren.

Together with the Moores’ advisor, the BTS team develops a “base case” for the Moore family that includes:

• A snapshot of the business, them as individuals and their investments.
• Preliminary observations and ideas to begin to address their concerns.

They then meet on an ongoing basis with the Moores until, jointly, they develop a comprehensive transition plan. At these meetings:

• The basis of the plan is discussed and developed;
• Team members obtain additional feedback from the Moores; including additional facts and insights.

Once the analysis is complete and a final plan is developed, the Moores and their advisor are ready with an integrated program to

• Improve cash flow to Roger and Juliana.
• Reduce the impact of estate taxation.
• Settle the question of “fairness” among the children.
• Allow the Moores to transition their business over time.

To learn whether Business Transition Services can help you, please contact your local wealth manager.