Wealth
What the owner and family keep. Wealth elements are set before the LOI, because after it they cannot be changed.
The elements
The four elements of wealth
Structure set before the letter of intent, so enterprise value becomes after-tax proceeds for the family.
29 · B5
Tax Strategy
Deal and entity structure set before the LOI to protect proceeds.
What the assay measures
Entity and deal structure reviewed by a transaction tax advisor before any LOI, with proceeds modeled under each structure.
30 · C5
Estate Architecture
Trusts and ownership set up so wealth transfers as planned.
What the assay measures
Trusts and ownership structures in place, reviewed within the last two years, and aligned to the owner’s stated wishes.
31 · D5
Insurance Shield
Coverage that protects the deal and the family from a bad year.
What the assay measures
Key-person, D&O, cyber, and representations & warranties coverage in place and sized to enterprise value; personal coverage sized to the family’s needs.
32 · E5
After-Tax Proceeds
What the owner actually keeps at close.
What the assay measures
Modeled net proceeds after tax, debt, fees, and escrow, as a share of enterprise value.
How it is scored
Against a target
Each element is scored from 0 to 100 today and given a target. The gap between the two is the work.
Compounds
Where wealth bonds with the rest of the table
Buyers underwrite some elements together, as one question. These are the compounds the wealth elements take part in, and the elements they bond with.
Where it is worked
Where FNDRS works on wealth
Each element is worked at a stage of the journey, and most sit in one of the six pillars of value. Here is where the wealth elements land.
The stages
Convert concentrated business equity into an intentional personal balance sheet: tax, estate, insurance, investment, and the life after.
Post-exit planning
The pillars
Enterprise value is not the number that matters. What you keep is, and what you do with it. This pillar is scored for the owner, not the buyer.
Read the pillar
The families
Seven families, one table
The table reads left to right in the order value is created: what you start with, the engine, the multiple, the discount, the transfer, what you keep, and what all of it is for.
What you keep
Structure set before the letter of intent, so enterprise value becomes after-tax proceeds for the family.
See where your wealth elements stand
The exit score is the first assay: fifteen minutes, six pillars, and a first read on the elements that matter most.