Scenario
A sale with part of the price paid later
Some of the price depends on how the company does after the founder steps back.
- The situation
- A founder has agreed to sell her company, with an earn-out and some of her shares rolled into the buyer. Tax, structures and the family's expectations all shift in the same few months, and the family's plans assume the full price arrives at once.
- What we would do
- Planning starts before the deal closes, when the most options are open. We map what the family will receive and when, and build the earn-out and rollover equity into a plan that respects tax and lock-ups.
- Where it leaves the family
- Before, during and after the sale, the family plans around what it will actually receive.