When a business owner receives an unsolicited offer, the decision may involve more than comparing the offer with a possible future sale price. Owners may need to understand what would actually be available after taxes, debt, transaction costs, and other obligations—and whether those resources, together with existing assets, could support their long-term goals.
This scenario illustrates how a Buyer Decision Review helped Dan and Sandy consider whether to accept an offer or continue growing the business in hopes of a higher offer later.
The Situation
At 66, Dan had spent nearly 30 years building a successful regional commercial landscaping and property-services company. Sandy, 63, and Dan had accumulated other assets, but most of their wealth remained tied to the business.
An unsolicited buyer offered approximately $28 million. They had to decide whether to accept or keep growing the company in hopes of a higher offer later.
They were considering several questions:
- What would the offer provide after taxes, debt, transaction costs, and proceeds not immediately available?
- How much would they need to net, together with existing assets, to support their lifestyle and long-term goals?
- Could those resources last through healthcare costs, inflation, and down markets?
- If today’s offer was enough, how much more would a future sale need to produce to make waiting worthwhile?
Beacon Pointe Business Owner Planning Solutions
The advisor team, supported by tax, estate, and healthcare specialists, conducted a Buyer Decision Review. They calculated Dan and Sandy’s Personal Financial Exit Number: the amount they needed to net from the business, together with existing assets, to support lifetime goals across healthcare costs, inflation, and both up and down markets.
They separately estimated the amount actually available from the $28 million offer after taxes, transaction costs, and other obligations, distinguishing cash at closing from contingent or deferred proceeds. The offer appeared capable of meeting their Personal Financial Exit Number.
The team then calculated the Waiting Hurdle: how much more a future sale would need to net to justify continued ownership and the risk of waiting.
Planning for Healthcare, Taxes, and Family Goals
The team evaluated pre-sale tax opportunities and post-sale strategies for newly invested wealth. They helped Dan transition to Medicare and Sandy secure coverage for the two years before she became eligible.
After the sale, Dan and Sandy funded 529 accounts for their five grandchildren, established an every-other-year extended-family vacation fund, and prepared for their first annual family meeting. With their attorney, they updated the estate plan and added creditor protection for the share that would eventually pass to their physician daughter.
The Outcomes in this Hypothetical Scenario
- The offer appeared capable of supporting their lifestyle and long-term goals.
- They established how much more a future sale needed to net to make waiting worthwhile.
- They addressed pre- and post-sale tax planning and healthcare coverage.
- They put family goals into action through education funding, family travel, and a first family meeting.
- They updated estate planning, including added protection for their physician daughter’s share.
- They incorporated more vacations into their spending plan.
Comparing the Offer With the Cost of Waiting
For Dan and Sandy, the review considered both what the offer could provide and what a future sale would need to produce to justify continued ownership and the risk of waiting. The Personal Financial Exit Number and Waiting Hurdle gave them a framework for considering the offer in light of their financial needs, healthcare, and family goals.
If you could benefit from a conversation with our advisory team, we would be happy to provide a complimentary consultation.
Important Disclosure: This case study is provided for illustrative and educational purposes only. It is intended to demonstrate the types of planning strategies and advisory services that may be available through Beacon Pointe Advisors, LLC. The scenario may be based on anonymized, modified, or composite client circumstances and does not represent the experience of any specific individual or family. Any outcomes described, including tax, estate planning, or investment results, are hypothetical illustrations only and are not guarantees of future performance or results. Individual outcomes will vary based on personal circumstances, applicable laws, and market conditions. Beacon Pointe does not provide legal or tax advice.