Case Study

Charting Your Own Course

Successful entrepreneur partners with FBB Capital Partners to enhance business continuity plan.

The Challenge: How does a business owner plan for the unknown?

Scenario:

Nathan, a middle-aged entrepreneur who had successfully built his company into a leading technology service provider, was at a point where he wanted to work less and travel more, enjoying the fruits of his hard work.

Even though he had a business continuity plan in place, Nathan was not sure if it was the best plan it could be. It seemed as though his sleep was interrupted almost nightly, worried about:

  • What if something happened to me tomorrow?
    • Who would take care of my family and employees?
    • Would my wife and children be able to live the same lifestyle they do today?
  • What happens to my business if I suddenly pass away?

Nathan engaged FBB Capital Partners to assist with reviewing his business continuity plan.

(Investopedia: A business continuity plan ensures that personal assets are protected and can function quickly in the event of an unexpected disaster.)

Later, he decided that finding a strategic buyer for the company would be the best long-term solution for him and the business.

FBB Capital Partners Solution:

FBB Capital Partners became involved early on in the process as a financial quarterback.

FBB reviewed various investment banking firms and presented the pros and cons of each to Nathan. FBB Capital also assisted in building out a team of professionals, including estate planning attorneys and accountants, to help determine the most appropriate titling structure for his share of the business.

Through the process, Nathan’s charitable inclinations became increasingly evident, as was his need for a long-term stream of income from his assets.

In the end, a charitable remainder trust for a substantial part of the sale allowed him to minimize taxes, provide income for his lifetime, and leave the remaining assets to the charities of his choice—including the conservation of wildlife.

FBB Capital Partners works with business owners and entrepreneurs in retirement planning, estate planning, determining an exit strategy for selling the business, and succession planning.