Wealth Advisors, Life Advisors

Background

An established executive, our client had made a successful career at a company that had recently been sold to a private equity firm. Over time, his role within the company had changed and he became disillusioned with the direction the company was taking and with his job responsibilities. Emotionally, he needed a change. While, on paper, this client had a substantial net worth, most of it was tied up in stock and options in the privately held business.

Solution

Considering a one-year sabbatical, a career change or acquiring or starting a business, LAMCO was engaged to help build the necessary scenarios to gauge the impact of such a change. We built complete forecasts of our client’s options for redeeming his stock at a discount, the potential loss of income over a short to intermediate horizon, the capital required to acquire or start a business and the return that would be required on that investment to offset the temporary loss of income and forgone earnings on investments.

Ultimately, we determined that making any change would result in a financial setback that would be difficult to recover from, and instead helped our client devise a five-year plan that afforded him the structure he needed to remain emotionally engaged in his current position while building options that could provide him with a viable exit strategy.

Results

Within two years, the private equity firm sold the business and the client received the maximum payout on his equity and options. Today, our client is financially secure and focused on investing his financial and intellectual capital in helping businesses reach their full potential.

For most of us, there comes a point in our lives at which we must make decisions, albeit tough ones, to best set ourselves up for future happiness. Making those decisions with purpose using robust, unbiased advice can help ensure the path you choose is the right one.