Planning
Beyond the
Business
Preparing for a Liquidity Event
A liquidity event is more than a transaction. It is the transition from concentrated business wealth to long-term personal wealth. The planning that takes place before a transaction can help align financial decisions with your broader objectives, including your family, legacy, philanthropic goals, and long-term investment strategy.
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Planning before a transaction
Once a transaction closes, most of your planning options close with it. The window to structure things like taxes, timing, and what the capital does once it’s liquid is now, while you still have flexibility. Below is the framework we walk clients through before a sale.
1
Coordinating Decisions Before They Matter Most
Early coordination with legal and tax advisors helps business owners evaluate transaction structures, tax considerations, and strategies before a sale. Working in coordination with legal and tax advisors, business owners can assess charitable planning opportunities and strategies designed to preserve flexibility while supporting long-term goals.
2
Planning Your Capital After Liquidity
A liquidity event transforms a concentrated business interest into investable assets. That transition may create an opportunity to define long-term objectives, establish an investment strategy that aims to meet future cash flow needs, and determine how capital may support family priorities, future business ventures, philanthropy, or other long-term aspirations.
3
Aligning Wealth Transfer with Long-Term Goals
For many families, estate planning opportunities are most effective before a transaction occurs. Evaluating gifting strategies, trust structures, and other wealth transfer techniques before a liquidity event may allow, as an example, future appreciation to occur outside the taxable estate while supporting multigenerational planning goals.
4
Integrating Giving Into Your Overall Plan
For individuals and families with charitable objectives, philanthropy is often most effective when thoughtfully incorporated into the broader planning process. Evaluating charitable strategies before a transaction can help align giving with personal values while considering tax efficiency, family governance, and long-term legacy objectives.
