Aligning the Finances of Business and Family

Your family business is much more than a career; it’s the culmination of a lifetime’s worth of passion, commitment, late nights and working weekends. There’s no question that the responsibilities and demands of running a business can be all-consuming. So many people – from clients and suppliers to your employees and their families – depend on the critical decisions you make every day.

Yet all the time required to set strategic direction, deal with sales and service issues, and manage employees on a day-to-day basis can ultimately take a tremendous toll on your ability to adequately plan for your personal wealth.

Think “total wealth picture”

All too often, we encounter owners who have built tremendous enterprise value in their businesses without having any idea of when or how to go about unlocking that value. What they fail to realize, however, is that this lack of planning leaves their family exposed. The good news is that with proper planning and guidance it’s possible to get both sides of your financial house not only in order, but working together harmoniously.

Integrated financial planning can provide answers to many of the personal wealth questions that have probably been in the back of your mind such as:

  • Am I assuming unnecessary risk by having so much personal wealth committed to my business?
  • Have I been putting enough away for retirement or sinking it back into the firm?
  • What would happen to both my business and my family if I unexpectedly died?
  • How and when should I begin to monetize my business?
  • Are there tax-efficient strategies to pass my business interest to my heirs or sell to a third party?

Competing interests

Complicating matters further, the financial needs of the business frequently come into direct conflict with the financial needs of your family. For example, monetizing a portion of your business by taking on an equity partner may be a highly advisable personal wealth strategy, allowing you to mitigate investment risk by diversifying a concentrated stock position and providing both liquidity and flexibility to implement various retirement and estate planning strategies.

But is it worth doing if it means relinquishing a majority stake in your business? How would it impact your ability to chart the future course of the business? Would it adversely impact your employees? Questions like these can often leave you feeling pulled in multiple directions, torn in trying to decide which side wins.

Leveraging our combined insights and expertise, our mission is to help you examine each challenge you face on both sides of the “wealth ledger” – from capital raising, expense management, liquidity, growth and risk management strategies on the business side, to wealth protection, legacy planning, retirement income, transition and risk management planning on the personal side – and explore how possible solutions impact all the various other facets of your total wealth picture.

Talk to us today about how we can help put both sides of your financial house in order.