Client Examples Business Planning

Business Transfer Options

Client Name: Mark

Company Type: Logistics

Employees: 100 employees

Revenue: $18,000,000

Mark owns a logistics firm and is within ten years of retiring. He is the sole owner of his company with no identifiable successors. Mark is looking at exit options and which is best for him.

Challenges: Selling a business is very different than selling most assets. There are over 18 different ways to sell or cash out of a business and each method has pros and cons for the exiting owner.

The Brezden Solution: Mark was unaware of the full array of options available to him. With BWA’s expertise, Mark was able to evaluate not only a traditional sale option, but also understand his internal and external transfer options, and the differing sales price and taxation associated with each. What he would receive for his business given the different exit options was then tied back to his personal retirement planning objectives to ensure the highest probability of success throughout retirement.

Succession Planning and the BWA Network

Client Name: Diane

Company Type: Engineering Firm

Employees: 50

Revenue: $27,000,000

Diane owns an engineering firm. She has three daughters, one of whom (the eldest) is actively involved in the business and who would, one day, like to run the business. The other two daughters are not involved in the business. Diane’s husband is close to retirement and she would like to have a succession plan in place prior to them both entering retirement.

Challenges: If Diane leaves the business to her eldest daughter, how does she handle the distribution of their estate and keep things equal among the three daughters if the business represents 75% of the value of the estate? This only leaves 25% of their estate to the other two daughters.

The Brezden Solution: Succession planning often has many elements. As part of the BWA solution, consulting specialists from the Brezden Network were brought in to ensure the successor (daughter) was ready, willing, and able to take on her new role as business owner and President of the company. In addition, BWA used various financial techniques to ensure an equitable distribution of the estate while considering the role of the active child, versus the two inactive children in the family business.