With careful planning, you can enjoy and safeguard all that you’ve built while staying involved in your business for as long as you want.
Lakshmi* had built a very successful U.S. textile company. It was valued at over $50 million and made a profit of approximately $8 million per year. Lakshmi ran the business and served as lead designer.
Now in her fifties, happily married and with two daughters in college, Lakshmi didn’t want to work the long hours she had when she was younger. And while she may have been ready to relinquish the business reins, she didn’t want to stop designing textiles—it was her passion. And she certainly didn’t want to jeopardize the wealth she had worked so hard to attain.
The textile industry can be fickle. It has inherent cyclical risks. Despite Lakshmi’s desire to pass the business on to her daughters, neither showed any interest in the field.
Lakshmi knew that she needed a gradual off-ramp that would protect her lifelong investment. So she turned to J.P. Morgan Private Bank to help her create what she referred to as a “stay rich” plan—and to craft a long-term exit strategy.
We saw that Lakshmi needed to diversify without selling the company outright. She’d stay involved in her business as the creative director, but we would help her move much of her wealth—and responsibility—out of the company. Then, we’d invest that capital in assets that didn’t face the same risks as the textile industry.
Our business advisory group helped Lakshmi put together a plan with four key components:
*Names and details have been changed to protect our clients’ identities. Information is not a guarantee of future results.
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