Case Study: Newly Acquired Liquid Assets

Background

A prosperous business owner was planning to sell his company and needed help with the transaction and management of his finances following the sale. He came to Kanaly for advice on how to begin the process of selling his business and for our thoughts and recommendations regarding how to build the right team of professionals to assist his family with this life-changing event.

Case History

  • Client is 45 years old and married with children.
  • He is now the sole owner of his business, of which his father once owned a portion.
  • Following the purchase from his father, the client received several unsolicited offers from other parties to purchase the company at a significant premium.
  • The client and his wife had significant charitable intentions in addition to their goal to gift assets to their children. They wanted to do this during their lifetime and at death.

Course of Action

  • We helped assemble a team of outside professionals that included a trust and estate attorney, a CPA, and a mergers and acquisitions attorney.
  • We initiated pre-transaction planning including structures to reduce income, gift and estate taxes and updated their estate planning to maximize their post-transaction benefit.
  • We helped coordinate the gifting of assets to their children and to the various charities they supported.
  • As a result of our expertise in working with high-net-worth families for nearly forty years, our team was able to assist and manage the pre-transaction planning process for the client, as well as implement a long-term and customized investment management strategy for the family.

Profile

Name: Kevin (45) and Maria (45)

Occupation: Business Owner

Net Worth: $12 million

Children: Three children