Case Study – Don Phillips

  • Age 48

  • Business Owner

  • Annual Income $400,000 to $650,000

  • Net Worth $1,230,000

  • Wants to sell company

Don Phillips is the 48 year old owner of DP Machining. His business has seen significant growth since he started it 10 years ago. Although providing him with a very comfortable living, Don has grown tired of his business and would love to sell it and do something more exciting and fulfilling.

With over $4 million in sales, he thinks he should be able to sell his company but is unsure what it is worth or how to sell it. He has a salary of $250,000 and additional distributions from profits ranging from $150,000 to $400,000 depending on the year. His annual expenses are just under $175,000 including mortgage and health insurance but not including travel and entertainment. His 401k has $385,000 in it and he has an E-Trade account that he manages with $215,000 in it. His home is valued at $795,000 and he has a mortgage of $365,000.

Don’s main concern is selling his business for the best price and making sure his employees will be taken care of. In addition, Don is concerned with maintaining his lifestyle post sale and having enough money to bridge the gap between the sale of his company and the next stage of his career. However, he is equally concerned with keeping enough reserves to provide for a comfortable retirement should the next stage of his career prove not as successful as his first.


  • Devise an exit plan to sell his business in the next 1-2 years.
  • Help determine business valuation and select a broker to sell the company.
  • Manage the “sale team” of professionals (broker, accountant, lawyer).
  • Determine a tax efficient strategy for the proceeds from the sale of the business.
  • Create a post-sale financial plan to serve both short-term and long-term income needs.
  • Establish and manage an investment portfolio to preserve and grow the proceeds.

Securities offered through Concorde Investment Services, LLC (CIS) Member FINRA / SIPC. Advisory services offered through Concorde Asset Management (CAM), an SEC registered advisor. Insurance offered through Concorde Insurance Agency (CIA).

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