Make a personal plan for your exit or IPO
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Make a personal plan for your exit or IPO
Peyton Carr
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Peyton Carr is a Financial Adviser to founders, entrepreneurs and their families, helping them with planning and investing. He is a Managing Director of Keystone Global Partners.
Whether you're a founder, an early employee or an executive, the possibility of an exit offers extraordinary financial possibilities.
However, I see plenty of founders having liquidity events only to find themselves making hurried decisions with their newfound wealth, ultimately feeling frustrated when they realize they've paid a painful price by not having the proper advice.
Typically, I recommend breaking your planning into two separate phases to reduce overwhelm and maximize your wealth: planning before an exit and planning after an exit.
Determine your goals and strategy
Before an exit, it's important to coordinate planning and hammer out key details that will carry you through the sale of your business. This typically means teaming up with a financial adviser, an accountant, and an estate planning attorney. Just as you've built the team of your company to help your business grow and succeed, it's important to build a team that's coordinated and focused on your personal financial success both now and in the future.
Spending time upfront to determine your goals, objectives, and desired lifestyle can save you endless headaches on the back end of an exit, possibly save you a surprising amount in taxes and set you up for long-term success and fulfillment.
Taxes and QSBS
Speaking with a professional can help you determine what tax savings opportunities would be most applicable to your specific situation. For exam