SHAREHOLDER LIQUIDITY ALTERNATIVES
There are just as many alternatives to selling your business, as there are reasons for seeking liquidity. Understanding the liquidity alternatives available to you, a significant shareholder in your company, will assist you in your estate and corporate planning objectives and investment diversification requirements. The following presentation is intended only as a brief description of some of the liquidity alternatives available. Each alternative is explored by addressing some of the key decision variables, which should be considered in your analysis.
REVIEW OPTIONS FOR SHAREHOLDER LIQUIDITY ALTERNATIVES
A schematic diagram is presented in the beginning of each section to help you visualize the transaction. In each diagram, assume XYZ, Inc. is your company and take special note of how each transaction generates cash to you.
LEVELS OF VALUE
Depending on which transaction best satisfies your needs, you may be converting anywhere from 1 percent to 100 percent of the equity in your company to cash. Accordingly, it will be necessary to value the percentage of your company involved in the transaction with respect to the levels of value presented below.