Business Owners MSSB


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Give Your Business and Your Life A Financial Advisor

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Business Owners MSSB

  1. 1. Give Your Business and Your Life A Financial Advisor
  2. 2. You started your business by borrowing against your credit card…Which seems like a long time ago now that your children have moved out…and your mother-in-law has moved in…Which prompts you to cash in on some of your stock investments to purchase a vacation home… Which becomes collateral...
  3. 3. Your Business.
  4. 4. Your Life.
  5. 5. From the start, your company and your personal wealth were intertwined. And they will continue to be throughout the life of your business. That’s why it’s essential to have one advisor who sees the whole picture. Someone who understands how decisions made in one piece of your wealth puzzle can improve, or diminish, another. Someone who will get your personal wealth and business wealth working together to increase the value of both. For instance, you might be considering paying for that new piece of equipment with a second mortgage on your home. But a Financial Advisor recommends structuring a loan against inventory instead. And points out that the flexible payments will help you steer extra cash flow toward winning new business. And shows you how the boost to your personal balance sheet will enable you to save even more. So you can get closer to buying that long-cherished second home, rather than owing even more on your first. Why does your business need a Financial Advisor? Because that person will treat your business for what it is— the biggest investment of your life.
  6. 6. One Financial Advisor. Financing options that run the full gamut, combined with experience that helps identify the Basic, transactional best option given your business and personal Banking and trEasUrY balance sheets. Options include: managEmEnt sErvicEs n Term loans and n Home equity that grow with your business to credit lines n Letters of credit help save you time and money. Equipment n n Growth capital n Commercial deposit and treasury acquisition n Senior credit facilities management services n Commercial real n Bridge and mezzanine n Lockbox and payment collection services estate financing financing n Electronic payments and multi-currency n Securities-backed transaction services financing n Fraud protection PrEliqUiditY and sUccEssion Planning n Business valuation and succession/ n GRATs (Grantor Retained Annuity distribution of assets plan Trusts), Family Limited Partnerships n Stock transfers and trusts that may (FLPs), LLCs and other vehicles to save estate and gift taxes pass on assets and reduce estate n Installment sales to family members and gift taxes n Retirement planning n Review of wills and estate documents for financing several pieces of new manufacturing equipment…Which provides an efficiency sophisticated business banking tools, like treasury services and lockbox management… Which Which leads to added sales and profits, resulting in a higher business valuation… Which means
  7. 7. risk managEmEnt Your business represents a large portion of your rEtirEmEnt Plans income and net worth, and that’s a good reason to Many different kinds, each with unique protect it. Risk management services include: advantages, designed to help you provide retirement benefits for yourself and your n Key-person insurance and buy-sell agreements key employees—but in a tax-advantaged n Comprehensive financial plans and way so the business benefits as well. diversified portfolios n Profit sharing plans, tiered plans, n Strategies for extracting liquidity from 401(k), defined benefit plans and the business SIMPLE IRA plans n Interest rate and currency hedging mErgEr and acqUisition sErvicEs comPrEhEnsivE wEalth managEmEnt for business owners who want to cash in on years to help ensure that your wealth works. of hard work through a sale to a strategic buyer, n Income and cash n Investment a private equity group or employees. flow planning management n Full or partial n Recapitalizations n Asset protection n Wealth transfer business sale n Personal borrowing n Employee Stock Ownership Plans (ESOPs) advantage that allows you to double revenue…and triple profits… Which means you need more allow you to save on accountants and instead hire that crack VP of Sales that you’ve been eyeing… you need a strategy for transferring your business to your daughter in a way that she can
  8. 8. Your Financial Advisor sees the connection. The financial tools you need to manage the various pieces of your business and personal finances are available from dozens of firms, each with their own specialties. But there’s one person whose specialty is you. Your Financial Advisor. And that’s how the pieces get connected. Of course, your Financial Advisor doesn’t work alone any more than you do. He or she can consult with other advisors you trust, as well as specialists who have years of experience working with just about every problem, and every opportunity, you might encounter. From cash management systems, employee stock ownership plans, and growth capital for your business…to estate planning, investment manage- ment and asset protection for you and your family. Your business and personal finances are connected. One you, one Financial Advisor.
  9. 9. afford to buy it…and you can afford to sell it without sacrificing your retirement… While, at the same time, compensating your son for his “share” that he’s not inherit- ing because he’d rather become a musician… All of which takes an about-turn when, several years later, you receive an unexpected offer for the business…one from a private equity group that will allow you to sell 70% of the company now, and retain a stake in its future, while continuing to run the daily operations… Operations that expand rapidly and result in a second liquidity event three years later, when you, your daughter and your private equity partner sell the company outright… Which, thanks to a little presale plan- ning, has only a slight effect on your tax bill…And a big impact on your portfolio…Which enables you to set up a trust so
  10. 10. your new grandson can someday start his own business…
  11. 11. All commercial loans and lines are made by Citibank, N.A., equal opportunity lender. All credit products are subject to satisfaction of Citibank’s underwriting guidelines and credit approval. Credit products and services are provided by Citibank, N.A. and/or its banking or lending affiliates. Deposit products are provided by Citibank, N.A. Member FDIC. Certain sweep account balances are not insured by FDIC. Minimum balances and/or fees may apply to certain products—see your banker for details. A Morgan Stanley Smith Barney relationship does not have to be established or maintained to obtain the products or pricing offered as part of the Smith Barney Home Loan Program at Citibank. Home equity programs not available in AK. A default (stopping monthly payments) on a mortgage could result in the loss of pledged real estate, securities or both. Morgan Stanley Smith Barney policy does not permit clients to use the proceeds of a home loan to invest in the securities or related markets. Your Financial Advisor may receive compensation in connection with this lending program. Affiliates of Morgan Stanley Smith Barney may earn fees in connection with the funding, origination, and sale of a loan. All home loans/lines are made by Citibank, N.A., or CitiMortgage, Inc., equal housing lenders, and are subject to Citibank and CitiMortgage’s mortgage qualifications. CitiMortgage does business as Citicorp Mortgage in NM. In CT and NJ, Citigroup Global Markets Inc. is the BROKER ONLY, NOT THE LENDER. Citigroup Global Markets Inc. is a registered mortgage broker, NYS Banking Department. In AZ Citigroup Global Markets Inc. is a licensed Mortgage Broker (Lic. No. 0903067). Citigroup Global Markets Inc., Citibank, N.A., and CitiMortgage, Inc., are subsidiaries of Citigroup Inc. Borrowing against securities may not be suitable for everyone. If the value of the securities should decline below a minimum level, you may be subject to a collateral call without specific advance notice, requiring you to deposit additional cash or securities. If you cannot do so, all or a portion of your collateral could be liquidated, and a potentially taxable event could result. You are not entitled to choose which securities are sold or any extension of time to meet a collateral call. A concentrated portfolio holding a single or a few securities may be subject to greater risk of a collateral call than a diversified portfolio; a diversified portfolio will tend to be less subject to a sharp decline resulting from the negative performance of a single security. Morgan Stanley Smith Barney LLC, its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. © 2009 Morgan Stanley Smith Barney LLC. Member SIPC. 174680JV GP24047 06/09