Hire Us
Client Portal

Don: Wants to Sell his Company

Age: 48
Annual Income: $400,000 to $650,000
Net Worth: $1,230,000
Concern: Wants to Sell His Company

Background
Don is the 48-year-old owner of a machining company. His business has seen significant growth since he started it 10 years ago. Although providing him with a very comfortable living, Don has grown tired of his business and would love to sell it and do something more exciting and fulfilling.

With over $4 million in sales, he thinks he should be able to sell his company but is unsure what it is worth or how to sell it. He has a salary of $250,000 and additional distributions from profits ranging from $150,000 to $400,000 depending on the year. His annual expenses are just under $175,000 including mortgage and health insurance but not including travel and entertainment. His 401k has $385,000 in it and he has an E-Trade account that he manages with $215,000 in it. His home is valued at $795,000 and he has a mortgage of $365,000.
CONCERNS
Don’s main concern is selling his business for the best price and making sure his employees will be taken care of. In addition, Don is concerned with maintaining his lifestyle post sale and having enough money to bridge the gap between the sale of his company and the next stage of his career. However, he is equally concerned with keeping enough reserves to provide for a comfortable retirement should the next stage of his career prove not as successful as his first.
THORNWOOD SERVICES
Devise an exit plan to sell his business in the next 1-2 years.

Manage the “sale team” of professionals (broker, accountant, lawyer).

Determine a tax efficient strategy for the proceeds from the sale of the business.

Create a post-sale financial plan to serve both short-term and long-term income needs.

Establish and manage an investment portfolio to preserve and grow the proceeds.

Help determine business valuation and select a broker to sell the company. Manage the “sale team” of professionals (broker, accountant, lawyer).

Create a post-sale financial plan to serve both short-term and long-term income needs.

Previous
Next

The case study is a hypothetical illustration and does not reflect an actual client. It is for informational purposes only, does not constitute as investment advice, and is not legal or tax advice. Individual results will vary. Please consult the appropriate professional regarding your individual circumstance. Performance or projections are not guaranteed.

WISCONSIN
6226 BANKERS ROAD STE 1
MOUNT PLEASANT, WI 53403
(262) 638-0224

FLORIDA
THE VILLAGES
(352) 224-3082

ILLINOIS
12545 FARM HILL DRIVE
HUNTLEY, IL 60142
(847) 999-0700

[email protected]

Facebook Linkedin

Check the background of these investment professionals on FINRA’s BrokerCheck. 

IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax concepts, therefore you should consult your legal or tax professional regarding the specifics of your particular situation.

Investments in securities are not suitable for all investors. Investments in any security may involve a high degree of risk and should only be considered by investors who can withstand the loss of their investment. Prospective investors should  perform their own due diligence carefully  and review the “Risk Factors” section of any prospectus, private placement memorandum or offering circular before considering any investment. Securities offered through Concorde Investment Services, LLC (CIS), member FINRA / SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Insurance products offered through Concorde Insurance Agency, Inc. (CIA). Thornwood Financial is independent of CIS, CAM and CIA. To access Concorde’s Form Customer Relationship Summary (CRS), please click here. 

This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every advisor listed. For additional information, please contact Laura Jocius at [email protected]

This is for informational purposes only, does not constitute as investment advice, and is not legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.