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Selling Business for Price You Need -- Tom's Story

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Tom at 73 wanted freedom to retire -- yet selling his business was impossible at the price he wanted. Deeper focus opened new opportunities, and a team to achieve his goals, and the confidence to secure the Life-Income and future Estate that Tom wanted for himself and his family.. >>> See more also at Amazon, "A Lifetime Of Wealth -- And How Not To Lose It"

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Selling Business for Price You Need -- Tom's Story

  1. 1. Selling a Business for the Price You Need <> Tom’s Story Brian Weatherdon MA, CFP, CLU, CPCA Author, Speaker, Financial Planner. Aligning your Wealth & Life to overcome fears and secure your income, lifestyle, & comfort to age 105
  2. 2. Before hearing this story . . . . • Continuing into these slides signifies you realize one person’s story cannot be representative of what everyone else should do. This story is personal and not in any way prescriptive for what you should do, nor for how your advisors may guide you. • • Stories in this wider series capture different approaches to value and decisions in business, pension, savings, and results for personal security, life income, and family estate. • • More information/insights at educational website www.GuaranteedIncome4Life.ca And 5-star rated book (Amazon, Kindle, bookstores) “A Lifetime Of Wealth -- And How Not To Lose It”
  3. 3. Tom was selling a Family Business • At 73 he was getting tired – had other dreams. • Staffing and daily hassles were becoming an endless & growing frustration...when he would rather play the finest golf courses year-round. • Asked how much he wanted, “$2.2Million” he quickly replied, as anything less wouldn’t allow the lifestyle and comfort he wanted to enjoy.
  4. 4. Can’t do your own “Valuation” • Needing $2.2M doesn’t mean getting it. I asked what interest he was getting. He looked down as he said, “my best offer is $1.7M”. • We introduced a Certified Business Valuator who confirmed a valuation range depending on possible buyers. Also a business broker to help assess opportunities to increase buyer interest and potential sale value.
  5. 5. What if he can’t get $2.2Million? • Tom believed $2.2M was his magic number, not due to a business valuation, but because after paying $½M debt he’d need $1.7M to live. • Sadly the world doesn’t care much about that. • But we care – so we look at the available levers. How can Tom increase business value? Will time help increase the value? At age 73 should Tom wait for a bigger sale value in future?
  6. 6. “No, I can’t buy back the time!” • Tom was strong but tiring of his burdens. I said, “if you do (x,y,z) you may be able to sell for $2.2M in the next few years. Yet if you do this, will you be able to buy back the time?” • Again looking down sadly he abruptly said, “No I can’t buy back the time!” . . . And this meant also, he couldn’t buy back time for his wife, his grandchildren, world travel & golf courses.
  7. 7. Saving Tom, his family & dreams • We don’t want Tom’s business to destroy his dreams and those of his dear wife & family. • Is there a way to attract sufficient proceeds of a business and unlock the life Tom is seeking? • Specifically will Life Income Mandates support his life today and to age 100 or beyond?
  8. 8. Enough income from $1.7M ? • $1.2M actually as he pays off $½M debt. • Tom’s own calculations were based on low interest rates, at best 3%. The tax-hit on this would also siphon off the lifestyle he wanted. • “Life Income Mandates” suggested 6% income and yet a lower tax rate, less risk to lifestyle, and guaranteeing he’d never run out of money.
  9. 9. “Life Income Mandates” • “Life Income Mandates” is a strategic process to enhance earnings and reduce or eliminate the risk that one would run out of money. See more & subscribe: http://www.guaranteedincome4life.ca/blog/life-income-mandates/ • “Life Horizon Analysis” also evaluates the early-, middle-, and later senior years for this couple, aligning their income changing needs & future comfort to fit their health & strength. See & subscribe: http://www.guaranteedincome4life.ca/blog/life-horizons-analysis-assuring-income-life/
  10. 10. Income streams for Life • Guaranteed Life-Payout Annuities laddered at 6-10% cash flow for life (and estate if needed). • Global govt & corporate fixed-income • Global Dividend Income • Global Infrastructure Income • Global Real Estate Income + income sourced from life, health, long term care insurances. + tax advantages among such sources of income.
  11. 11. If Tom waits . . . • • • • • Waiting may drive a higher business value. Waiting can bring events to reduce business value. Waiting could increase expected annuity income. Waiting steals months / years from desired lifestyle. Waiting is time he misses traveling & breathing the fresh air on the world’s best golf courses. • Waiting risks everything if death or illness occur. • Waiting threatens life now & delays precious dreams.
  12. 12. More resources for Business Exit Strategies • The website has a growing library of resources including video, podcast, articles, blogs, in addition to the learning modules in the site, and the book. www.GuaranteedIncome4Life.ca • Next step and subscribe for more, see . . . “Exit Strategies for Business” http://www.guaranteedincome4life.ca/blog/exit-strategies-for-business/
  13. 13. Resources to help get what you want • Experience this website to help focus on your future: www.GuaranteedIncome4Life.ca • Get 5-star book, Amazon/Kindle/bookstores: “A Lifetime Of Wealth – And How Not To Lose It” http://www.amazon.com/Lifetime-Wealth-how-not-lose/dp/1489579540/ref=sr_1_1? ie=UTF8&qid=1380311791&sr=8-1&keywords=a+lifetime+of+wealth+-+and+how+not+to+lose+it • Visit www.ALifetimeOfWealth.info

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