Getting You & Your Venture Ready For A Financial Transaction: “LPP”
Our comprehensive approach to liquidity planning begins well before, and continues long after, the actual divestiture of assets. While it is a fluid process, we have divided it into these three distinct stages for clarity purposes.
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Individuals who experience significant increases in net worth typically consider estate planning after the wealth creation event occurs. However, we believe the best opportunity to transfer wealth and reduce tax exposure often is prior to wealth expansion, such as a business sale, an IPO or merger transaction.
For example, a grantor retained annuity trust (GRAT) can be a powerful wealth transfer tool for an asset expected to rapidly appreciate and can create a meaningful difference in net proceeds for business owners contemplating a sale or transfer. This is why pre-liquidity planning is so important – the earlier we are involved, the better.
If your company is backed by a venture capital firm, you may only own a percentage and don’t have the autonomy to sell the business. Working with our investment bankers, we can offer strategies designed to enable you to free some or all of your assets, while allowing you to stay on with your company if you so choose.
At this time, we can also make preliminary plans for tax-mitigating financial instruments such as donor advised funds, private family foundations, charitable remainder trusts and a spectrum of other trusts.
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This stage involves selling some or all assets, exercising options, employing a capital gains strategy, and initiating investment banking executions such as sell-side agreements, non-control investments or partner buyouts, IPO and other capital raises. In addition to our own experience in this area, we tap the enormous investment banking resources of Alex. Brown and Raymond James.
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Now that you have executable assets, our attention turns to focusing on how to best invest them. Our Core Growth, Equity Income, and Equity Income Plus strategies are all components we may consider when customizing your portfolio.
To enhance liquidity and flexibility, we also may recommend lending solutions. To preserve your wealth for your future and your heirs, trust services and estate planning are also considered. In situations of extreme wealth, we can also explore the possibility of establishing a family office or multifamily office and networking into a family office exchange.
