I need a plan to minimize the tax impact of my concentrated stock position
Colorado small business owners:
Owning company stock is the #1 way to grow wealth, followed by inheritance.
To me, successful financial management means freedom.
Successful business owners face a significant risk to their personal wealth if something were to happen to the business. The opportunity of owning a business fades as time passes.
Working with our business owner team will help you grow assets outside of your company so that you and your loved ones are safe while the business goes through the usual cycles.
In the old way of doing business, a business owner had to communicate with a CPA, CFP, attorney, banker, etc. Then share that info with another person on the team. A lot of work!
With our way—the new way—of doing business, our unique process facilitates communication between experts. This way, a business owner can focus on steering the ship instead of being an expert at everything “under the hood.”
If you happen to have one of these relationships already, our process gives that person a seat at the table. And if not, we will introduce you to an expert who we have worked with for years, who we know and trust. Simple!
Our 7-step process helps a business owner maximize their financial return, minimize their tax liability, plan for contingencies, and successfully transfer their business.
Clients say the “best conversation about money I’ve ever had” includes:
The owner’s financial goals.
The owner’s key people, potential buyers, and other relationships.
The deeper values that drive succesfull deals.
Value the business assets, cash flow, non-business assets and income. Consider the owner’s options and objectives.
Identify the value drivers and take specific steps to increase business value and reduce the risks with an owner’s successful exit.
Identify the ways to optimize the sale price and terms. Not all business owners sell to third parties.
Carefully plan to transfer the business to insiders (children, key employees or co-owners). Receive the desired value and transfer a business with little or no personal capital.
Prepare for contingencies. A complete exit plan addresses death or permanent disability of an owner, key employee, disaster or sudden change so the owner’s objectives can still be achieved.
You may have built your wealth by owning shares in a single company. But, as time passes, you want a plan to minimize taxes, reduce these risks and still have a chance at significant growth. We make it easy to understand and to act on your options, RSUs, outright shares, etc.
Edward is an executive whose technology company went public. He has stock options, restricted stock units and owns stock outright in his ESPP (Employee Stock Purchase Plan). He has 100% confidence in his company’s ability to grow faster than other companies and wants to maximize his returns. But he also wants to protect his family’s financial security and not put them at risk by keeping too much with his employer. He has college to plan for, a new mountain vacation home to finish and to furnish, and charities, including his church, he would love to support. We:
Created a list of action items
Established a “safety first” financial plan
Prioritized and minimized tax and other costs with the various concentrated equity positions
Calculated how much equity he could keep with his employer, giving him the chance for substantially even more wealth while keeping his family safe.
Ongoing investment management
Edward says, “You are a great listener and make it easy for me to understand my options.” His successful outcome is more than financial, it is an emotional win for him and his family. Plus, he has the freedom to pursue his passion for the outdoors.
Sheryl loves the business she built but she is ready for a change. Sheryl carved out a unique niche and owns valuable intellectual property rights. She has several loyal employees she wants to make sure are protected. Her adult children have no desire to run the business. Her elderly mother needs more care. Sheryl would like to be there for her, and also for her grandchildren. We:
Helped Sheryl through the 7-step exit planning process
Introduced her to our expert network team who
Did a valuation of her business
Listed and sold the business
Planned for the taxes and hidden retirement costs
Created an investment management plan
“Thank goodness I found you,” Sheryl says. “Anytime I need something, I know who to call!” Sheryl finds time for personal pursuits and has since rekindled relationships that went on the sidelines while she was a busy professional. She is ecstatic!
A year ago, Bob had a stroke. As a partner in a successful law firm and he felt he had no one he could trust. His wife, Susan, had no interest in financial affairs, completely trusting “her Bob.” He was worried about his health and his family’s wealth. His daughter was financially irresponsible, and his son had drug dependency issues. Bob wanted to make sure his family did not fritter away all his money. We:
Created a financial plan
Prioritized the estate plan, protecting Susan just in case something happens to Bob
Created trusts to care for the kids
Empowered Susan by speaking in terms she could understand
Helped Bob with the transition of his business to another partner
Delivered ongoing investment management
“Money is a powerful influence,” says Bob. “My financial advisor keeps me informed and my family safe.” In his new role, Bob has improved health and happiness.
Dave was preparing his business for sale when we first met. He had been solicited directly by a potential buyer and did not know whether the value was fair, or not. It was a large amount of money and he was worried about the tax liability. Additionally, he did not trust the out of state buyers would be able to pay and had questions about their ability to run the business.
Started with an exit plan
Assembled our usual expert team
Discovered that Dave could use a little-known tax advantage called Qualified Small Business Stock
Approached the buyer with the expert team, and renegotiated the deal in Dave’s terms
Implemented a wealth management plan
Ongoing investment management for Dave’s company and his family
“I’m happy as long as I have enough money to buy gas and groceries and go fishing,” says Dave. His success came years after the initial engagement. The original buyer faded away when they realized they could not take advantage of him. The expert team found a new buyer, who gave Dave more than he thought he would ever get. Now Dave has time to go fishing all over the world.
Clients have counted on A&I Financial Services to navigate financial decisions for over 30 years. We are a second-generation, Colorado-owned and operated firm. Because we are independent, we are free to select the financial partners, products and service providers that will best position our clients for success. Click for more