Client Stories

A business owner in his late 50s approached our firm seeking more security of his future and assets for his family. Despite doing really well for himself with strong annual revenues and business growth, the client lacked centralized financial organization and was uncertain how to optimize their tax situation, retain key employees, and did not yet have an exit strategy that would secure his retirement. 

The owner had fragmented records: tax documents in multiple locations, outdated insurance policies, a neglected buy-sell agreement, no formal retirement plan for employees, and no clarity on the business's current market value. 

Here's How We Helped:

 We began by collecting and organizing all financial documents: 

• Tax returns, legal agreements, group benefit plan summaries 
• Insurance policies (life, disability), trust documents, and business performance data 
• Conducted an informal business valuation to assess current value and growth potential 

Through a detailed review, we discovered an overpayment of tax liability. In response, we: 

• Established a Profit Sharing 401(k) plan and a Cash Balance Plan 
• Strategically lowered both current and future taxable income for the client and the business 
• Employee Retention and Value Enhancement 

To protect and grow the business, we helped implement a Non-Qualified Deferred Compensation (SERP) Plan for key employees. 

• This incentivized them to stay during the company’s high-growth phase and aligned retention with the owner’s eventual exit 
• Ensured business continuity and protected long-term cash flows, which increased the business’s overall value 

Risk Management and Succession Planning:

• Reviewed and updated life and disability insurance coverage 
• Aligned the buy-sell agreement with triggering events and the insurance strategy 
• Structured ownership transition to create a step-up in basis for the buyer and ensure fair market compensation to the client’s family in the event of death or disability 

Exit Strategy and Sale Planning:

• Explored both internal sale to a key employee and a third-party acquisition 
• Modeled each option to identify the most lucrative path and analyzed associated income and capital gains tax liabilities 
• Created a deferred compensation plan to mitigate tax exposure from the future sale 

Retirement Planning and Value Gap Analysis 

• Conducted a retirement income analysis and uncovered a gap between desired retirement income and current business value 
• Together we designed performance incentives for employees to drive up business valuation 
• Aligned efforts to ensure the client could achieve the non-qualified sale value needed to support their desired post-exit lifestyle 

As a Result: 

• The client experienced a significant reduction in annual tax liability through strategic retirement plan implementation 

• The SERP plan increased employee engagement and retention, helping stabilize and grow the company during a key growth window 

• Insurance and legal alignment provided strong risk mitigation and future-proofed the owner’s exit plan 

• By preparing for both internal and external sale scenarios, the client had maximum flexibility and leverage during sale negotiations 

• After business value enhancement efforts, the company value increased by 27% over 3 years, closing the retirement gap 
• The owner is now positioned for a tax-efficient exit, strong retirement income, and a legacy plan that protects both family and business interests