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Case Study: Business Consulting: Planning an Exit Strategy

Business owner prepares for retirement and maximizes the sale price of the business, saving thousands in taxes

Client Profile: The Alexander’s

The Alexander’s hired Lynch Financial Advisors for business and personal advisement.  Mr. Alexander had been in the medical field for more than 25 years and was looking to retire in three to four years.  He and his wife came to LFA looking for portfolio management, but found that the benefits of the advice they received far outweighed any return in the market they would get with a money manager.

When we analyzed the Alexander’s situation, we realized that they could incorporate and save a significant amount of money.  We brought in a CPA to perform the business tax return and aid the company with other bookkeeping needs. 

Next we looked at what we call “loafing” assets.  We performed analysis on how their money was currently being used and how they could save more in tax dollars.  This led us to create a retirement plan that allowed the Alexander’s to put away more than $200,000 per year in pre-tax money, saving thousands of dollars.  At the same time, the retirement plan “locked-in” their best employees.

By the second year of the engagement, Mr. Alexander received an offer to purchase his practice.  To which he again called on us to ensure that the sale of the practice maximized the after tax dollars he would receive. 

At least once a year the CPA that we brought in mentions this client and is still amazed by how much money we saved them in taxes by the way we helped structure the sale.  The Alexander’s saved over $150,000 in taxes on a sale of a practice worth less than $500,000.  And NO insurance product was used! 

While not every client saves this much on taxes, we strive to keep as much money as legally possible in our clients’ pockets.



This case study describes actual client success stories and does not infer specific or guaranteed returns/results.

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In accordance with the Investment Advisors Act of 1940, NO information contained within this website pertains to asset management, returns on portfolio or market related financial guidance. All information included in case studies are in broad scope and do not reflect any changes in portfolio values. We do not guarantee financial returns.