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Confidential-Rich and Co.- ESOPs-Helping Your Clients Capture Liquidity Excerpts

Confidential-Rich and Co.- ESOPs-Helping Your Clients Capture Liquidity Excerpts

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Published by RichandCo
This is an excerpt from our initial presentation to financial professionals about the benefits to them and their clients.
This is an excerpt from our initial presentation to financial professionals about the benefits to them and their clients.

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Categories:Types, Business/Law
Published by: RichandCo on Sep 16, 2010
Copyright:Attribution Non-commercial

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05/12/2014

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Helping Your Business-Owner Clients
Capture Liquidity

³There is no bigger risk to my business, and future
growth, and critical client relationships, than a client
selling their business and me not being involved.´

-- Multi-billion AUM Investment Advisor
DRAFT
Comments welcome
Confidential
Copyright Rich and Co.
Reducing Your Risks -- Defending Your Assets
As your client¶s age, and they must liquefy the value locked in their

businesses, your relationships with them van ³go into play.´
If your client¶s businesses are sold outright, you risk:
‡ Investment banks, commercial banks and other financial firms will

likely capture your assets
‡ Family member¶s assets will move away from you
‡ Pension plan and employee benefit assets and accounts willmove

away from you
‡ Relationships with employees and key executives will belost
Copyright Rich and Co. 2010
2
An Outright Sale is Often Not the Best Option
‡ Many business owners want and need liquidity, but can¶t or

don¶t want to sell their businesses outright because:
± Control is lost
± Family member¶s involvement in the business can be

diminished or lost
± Of an emotional attachment to business
± They can¶t find acceptable buyer
± Banks are not making loans for purchases
± Inherent issues with business (eg, labor problems,

environmental issues)
‡ An ESOP permits the owner to achieve liquidity without selling
outright
‡ The owner can retain ownership while also capturing significant
assets
Copyright Rich and Co. 2010
3

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