Exit Planning

A closely held business may account for over 70% of an owner's wealth.  Because the business is considered illiquid, the ability to monetize the trapped wealth becomes overly complex.

There are many moving parts in the process and each must be carefully coordinated to maximize results.  At Beacon Exit Planning, LLC we have extensive knowledge and experience in the various aspects of transferring a business so the potential to achieve your exiting goals become more realistic.  

The Beacon Exit Planning philosophy is simple

• Each business owner has a unique set of motives for their business and exit (i.e., not just getting the highest price) so we believe that every exit strategy should be conducted over a period of time that is sufficient to accomplish each owner's true motives.
   
• We also recognize that every business owner looks at their business differently, so every exit strategy should be customized to fit that owner's primary objective.

Our proprietary three step D.A.D. process helps us reach success

Discovery – Understanding a business owner’s true goals for achieving success with the business transition.  The definition of success can only be defined by the owner. 

That’s why we begin every plan with a series of interviews to fully recognize what is motivating the owner.  Bottom line, it should be the owner’s motives, not the advisor’s motives that dictates the direction of the plan.

Analysis – Over the years, a business owner has created numerous legal documents that will influence a business owner’s life.  These documents can include, buy-sell agreements, wills, trusts, insurance policies and even the formation of the Company itself. 

Beacon analyzes each one of these documents to determine if they are properly coordinated and if they fully support the goals of the owners as identified in the Discovery phase.  In the analysis phase we identify potential obstacles to success.

Design – This is where we put pencil to paper and begin to draft the plan or the blueprint for execution of the strategy. 

The owner will have several alternatives each indicating, from a monetary standpoint the value of the business and what can be expected to be paid in fees and taxes, ultimately leading to the amount that the owner will realize in net proceeds.

We further provide solutions to potential roadblocks each with the owners’ intentions in mind.

Exit strategies should evoke the same spirit within a business owner that existed when the business was started. Beacon Exit Planning, LLC provides the tools for business owners to make educated decisions about how to best transition the company and follows through by providing the necessary resources to fulfill the plan.   

Exit Planning

A closely held business may account for over 70% of an owner's wealth.  Because the business is considered illiquid the ability to monetize the trapped wealth becomes overly complex.

There are many moving parts in the process and each must be carefully coordinated to maximize results.  At Beacon Exit Planning, LLC we have extensive knowledge and experience in the various aspects of transferring a business so the potential to achieve your exiting goals become more realistic.  

The Beacon Exit Planning philosophy is simple

• Each business owner has a unique set of motives for their business and exit (i.e. not just getting the highest price) so we believe that every exit strategy should be conducted over a period of time that is sufficient to accomplish each owner's true motives.
   
• We also recognize that every business owner looks at their business differently, so every exit strategy should be customized to fit that owner's primary objective.

Our proprietary three step D.A.D. process helps us reach success

Discovery – Understanding a business owner’s true goals for achieving success with the business transition.  The definition of success can only be defined by the owner. 

That’s why we begin every plan with a series of interviews to fully recognize what is motivating the owner.  Bottom line, it should be the owner’s motives, not the advisor’s motives that dictates the direction of the plan.

Analysis – Over the years, a business owner has created numerous legal documents that will influence a business owner’s life.  These documents can include, buy-sell agreements, wills, trusts, insurance policies and even the formation of the Company itself. 

Beacon analyzes each one of these documents to determine if they are properly coordinated and if they fully support the goals of the owners as identified in the Discovery phase.  In the analysis phase we identify potential obstacles to success.

Design – This is where we put pencil to paper and begin to draft the plan or the blueprint for execution of the strategy. 

The owner will have several alternatives each indicating, from a monetary standpoint the value of the business and what can be expected to be paid in fees and taxes, ultimately leading to the amount that the owner will realize in net proceeds.

We further provide solutions to potential roadblocks each with the owners’ intentions in mind.

Exit strategies should evoke the same spirit within a business owner that existed when the business was started. Beacon Exit Planning, LLC provides the tools for business owners to make educated decisions about how to best transition the company and follows through by providing the necessary resources to fulfill the plan.   

Asset Insulation

• What happens if a legal claim exceeds your insurance coverage or even worse, isn't insurable?  
• Could you be held legally responsible for acts of your employees, children and guests?  
• Do typical business owners understand under what circumstances a court may redistribute their wealth to others involuntarily?  

Divorce, business disputes, family disputes, predatory litigation, personal liability, and dozens more clog the courts every day. Nearly 35 million lawsuits are filed each year in the United States, or approximately 95% of the world's lawsuits.  

Nearly half of those lawsuits were regarded as "frivolous" meaning they had little merit based on the facts themselves. Regardless of the merits of the case, these judgments across the country totaled over $200 billion in awards last year alone.

Protect Yourself From Creditors and Predators

Proactive asset insulation is the purposeful structuring of asset ownership to limit liability exposure, make assets difficult to attachment and segregate risk. Often, techniques are used in combination to enhance protection and benefits.  

A creditor may place a lien on assets owned personally, jointly, through partnership or corporation. Statutes governing preferred entities preclude a lien on entity assets for claims against the owner. Thus, achieving asset protection involves using entities that have insulative characteristics, such as LLC's, LLP's and some trusts, then separating assets more likely to generate a liability to the owner.

If you would like to learn more about how you can integrate asset insulation into your planning needs and protect yourself from creditors and predatory lawsuits, then please feel free to contact us.

Asset Insulation

• What happens if a legal claim exceeds your insurance coverage or even worse, isn't insurable?  
• Could you be held legally responsible for acts of your employees, children and guests?  
• Do typical business owners understand under what circumstances a court may redistribute their wealth to others involuntarily?  

Divorce, business disputes, family disputes, predatory litigation, personal liability, and dozens more clog the courts every day. Nearly 35 million lawsuits are filed each year in the United States, or approximately 95% of the world's lawsuits.  

Nearly half of those lawsuits were regarded as "frivolous" meaning they had little merit based on the facts themselves. Regardless of the merits of the case, these judgments across the country totaled over $200 billion in awards last year alone.

Protect Yourself From Creditors and Predators

Proactive asset insulation is the purposeful structuring of asset ownership to limit liability exposure, make assets difficult to attachment and segregate risk. Often, techniques are used in combination to enhance protection and benefits.  

A creditor may place a lien on assets owned personally, jointly, through partnership or corporation. Statutes governing preferred entities preclude a lien on entity assets for claims against the owner. Thus, achieving asset protection involves using entities that have insulative characteristics, such as LLC's, LLP's and some trusts, then separating assets more likely to generate a liability to the owner.

If you would like to learn more about how you can integrate asset insulation into your planning needs and protect yourself from creditors and predatory lawsuits please feel free to contact us.

Tax Services

It is important to understand that there are three parties to every transaction: the buyer, the seller and Uncle Sam.  

The key concern that every business owner has is, "How much will I have to pay in taxes and how will I reduce/eliminate the taxes when I transfer this business?"  

With effective tax rates over 50% in some instances, the proper structure of a business transfer can have a significant effect on the seller’s ability to meet the post-exit lifestyle goals.

A headline that gives the reader information of the content

In addition, considering today's economic environment, increasing taxes will be a major revenue producing strategy for government agencies which will only make tax planning that much more critical.

Taxation is also important when considering risk management for a business owner. Insurance and asset insulation strategies can be implemented concurrently with the exit strategy to mitigate the risks found in privately held businesses.

A review of these products and strategies by a Beacon tax professional that is familiar with your exit plan is important to ensure that proper treatment is applied.

Obtain Your Best Possible Results

At Beacon Exit Planning, LLC our principal is a Certified Public Accountant with over 30 years of experience dealing with privately held business and transition related transactions.  

We work directly with the business owners or their current tax advisors to obtain the best possible results for our clients. Remember, it’s not what you get it’s what you keep that of utmost importance.

Taxation services include analysis and tax saving techniques in the following areas

• Business purchase and sales price allocations
• Partial business transitions
  • -Gifting business interests
  • -Management buyouts
  • -ESOP's
• Risk management techniques
• Buy/Sell agreement

Tax Services

It is important to understand that there are three parties to every transaction: the buyer, the seller and Uncle Sam.  

The key concern that every business owner has is, "How much will I have to pay in taxes and how will I reduce/eliminate the taxes when I transfer this business?"  

With effective tax rates as high as 50% in some instances, the proper structure of a business transfer can have a significant effect on the seller’s ability to meet the post-exit lifestyle goals.

Insurance and asset insulation strategies

In addition, considering today's economic environment, increasing taxes will be a major revenue producing strategy for government agencies which will only make tax planning that much more critical.

Taxation is also important when considering risk management for a business owner. Insurance and asset insulation strategies can be implemented concurrently with the exit strategy to mitigate the risks found in privately held businesses.

A review of these products and strategies by a Beacon tax professional that is familiar with your exit plan is important to ensure that proper treatment is applied.

Obtain Your Best Possible Results

At Beacon Exit Planning, LLC our principal is a Certified Public Accountant with over 30 years of experience dealing with privately held business and transition related transactions.  

We work directly with the business owners or their current tax advisors to obtain the best possible results for our clients. Remember, it’s not what you get it’s what you keep that of utmost importance.

Taxation services include analysis and tax saving techniques in the following areas

• Business purchase and sales price allocations
• Partial business transitions
  • -Gifting business interests
  • -Management buyouts
  • -ESOP's
• Risk management techniques
• Buy/Sell agreement

BUSINESS VALUATION SERVICES

Your construction/contracting company has value. Unfortunately, as a privately held company value is not readily attainable from the business section of the local newspaper or the internet.  To complicate matters, your company can have different values associated with it based on the exit strategy you choose.  

To determine if your exit goals can be achieved you will need to know the relevant value of your business based on the strategy you wish to implement.  

Specialized Knowledge Meet Your Exit Strategy Goals

Whether you’re looking to determine the value of your company so you can sell it or if you want to take advantage of applicable discounts and transfer your business to a family member or trust our specialized knowledge in tax and valuation services affords us the ability to implement the appropriate valuation method in order to meet your exit strategy goals.

Beacon Exit Planning, LLC provides valuation services to meet the following needs:

• Sale of Business Interest
• Estate and Gift Strategies
• Risk Management Techniques
• Owner Buy/Sell Agreement

BUSINESS VALIDATION SERVICES

Your construction/contracting company has value. Unfortunately, as a privately held company value is not readily attainable from the business section of the local newspaper or the internet.  To complicate matters, your company can have different values associated with it based on the exit strategy you choose.  

To determine if your exit goals can be achieved you will need to know the relevant value of your business based on the strategy you wish to implement.  

Specialized Knowledge Meet Your Exit Strategy Goals

Whether you’re looking to determine the value of your company so you can sell it or if you want to take advantage of applicable discounts and transfer your business to a family member or trust our specialized knowledge in tax and valuation services affords us the ability to implement the appropriate valuation method in order to meet your exit strategy goals.

Beacon Exit Planning, LLC provides valuation services to meet the following needs:

• Sale of Business Interest
• Estate and Gift Strategies
• Risk Management Techniques
• Owner Buy/Sell Agreement