What Are Your Goals?
Are the proceeds intended to support retirement, provide long-term growth, fund future spending or remain invested for another objective?
Wealth Management for Business Owners
Wealth Management for Business Owners in Chicago
For many business owners, years of wealth creation are concentrated in one company.
When that changes through a business sale or another major liquidity event, you may suddenly need an entirely different strategy for managing your personal wealth.
Gold Coast Capital Management helps Chicago business owners develop and manage investment portfolios for the financial life beyond the business.
01The Transition
When Business Wealth Becomes Personal Wealth
Building a successful business and managing an investment portfolio require different decisions.
Before a sale, much of an owner's wealth may be concentrated in the company itself.
After a liquidity event, that concentrated business value can become cash and marketable investments that now need to support personal goals for years or decades.
That transition can create a new set of questions:
Gold Coast Capital Management works with business owners and individuals experiencing major liquidity events in Chicago to address the investment side of that transition.
Every client works directly with Dragan Mark Filipovic, CFA®, Founder and Chief Investment Officer.
Questions After a Liquidity Event
01
How much of the proceeds should remain liquid?
02
How should the money be invested?
03
How much investment risk is appropriate now?
04
How quickly should a large cash position be put to work?
05
How should the new assets fit with investments you already own?
06
How can a concentrated source of wealth become a diversified portfolio?
07
How should taxes be considered when investment decisions are made?
08
What does the money need to accomplish now that it is no longer tied to the business?
02After the Sale
Wealth Management After Selling a Business in Chicago
Selling a business can transform your personal balance sheet.
An asset that may have represented years or decades of concentrated effort and risk can suddenly become a substantial pool of liquid capital.
The sale itself may be complete.
The financial decisions that follow are just beginning.
For many former business owners, the challenge is moving from building wealth through one company to managing wealth through a diversified investment strategy.
Gold Coast Capital Management helps develop that new investment framework around your goals, time horizon, liquidity needs and tolerance for market risk.
The Shift
From
Building wealth through one company
To
Managing wealth through a diversified investment strategy
03Before You Invest
Before Investing Business-Sale Proceeds
Receiving substantial liquidity does not mean every dollar needs to be invested immediately. Before developing a portfolio, it helps to understand what the new capital needs to accomplish. We consider questions such as:
How Much Liquidity Do You Need?
Some capital may need to remain readily available for near-term needs rather than being committed to a long-term portfolio.
How Much Risk Is Appropriate?
Your willingness to take business risk does not automatically determine how much investment risk is appropriate after the sale.
What Do You Already Own?
Existing retirement accounts, brokerage assets, real estate and other investments should be considered alongside the new liquidity.
What Is Your Time Horizon?
Capital needed within several years should generally be considered differently from assets intended to remain invested for decades.
These questions create the foundation for a personalized investment strategy.
Explore Investment Planning04From Concentration
From Concentrated Wealth to a Diversified Portfolio
Business owners often become wealthy through concentration. A meaningful portion of their net worth may depend on one company, one industry and their own ability to execute. After a sale, the investment objective can change.
Instead of continuing to depend on a single source of wealth, a diversified investment portfolio can spread exposure across different investments, asset classes and markets. The appropriate allocation depends on the individual.
Gold Coast Capital Management considers:
The goal is not diversification for its own sake.
It is to create an investment portfolio appropriate for the financial life you are building after the business.
01
Financial objectives
02
Investment time horizon
03
Risk tolerance
04
Liquidity needs
05
Existing investments
06
Portfolio diversification
07
Investment costs
08
Relevant tax considerations
05Managing Liquidity
Managing a Large Cash Position After a Liquidity Event
One common result of a business sale is suddenly holding significantly more cash than you have managed before. There can be pressure to make immediate investment decisions. But a major liquidity event does not require an immediate all-or-nothing approach.
A thoughtful process can first determine:
For some investors, simply establishing a clear framework before making substantial changes can be valuable.
A Thoughtful Process
01
What money may be needed in the near term
02
What can remain invested for the long term
03
How much market risk is appropriate
04
How the capital should be diversified
05
How existing investments should fit into the new portfolio
06
Whether certain decisions deserve additional tax or legal review
06Tax Awareness
Tax Awareness After a Business Sale
A business sale can create significant tax considerations, but Gold Coast Capital Management does not provide business-sale tax advice, transaction structuring or tax preparation.
Those issues should be addressed with your CPA, attorney and other qualified transaction professionals. Our role is different. Once capital is available to invest, we can consider relevant tax consequences within the investment-management process.
For example, portfolio decisions may involve considerations around:
Taxes are one factor within the investment strategy, not the only factor.
Portfolio Tax Considerations
Taxable versus tax-advantaged accounts
Capital gains and losses
Asset location
Portfolio turnover
Concentrated investment positions
Tax consequences of future portfolio changes
07Two Transitions at Once
Approaching Retirement After Selling Your Business?
For some owners, selling the business and retiring happen at roughly the same time. That can create two major financial transitions at once. You may be moving away from both: the company that created your wealth and the income that supported your lifestyle.
The investment portfolio may now need to assume a much larger role.
Questions around risk, future withdrawals, liquidity, long-term growth and portfolio structure therefore become increasingly important.
Gold Coast Capital Management works with business owners approaching retirement to develop an investment strategy around the financial life ahead.
Moving Away From Both
01
The company that created your wealth
02
Wealth Management for Retirees & Pre-Retirees The income that supported your lifestyle
08Before the Transaction
Planning for a Future Liquidity Event
You do not necessarily need to wait until after a business is sold to begin thinking about your future investment strategy.
If a sale or significant liquidity event is approaching, it can be useful to understand:
Gold Coast Capital Management's role is focused on the personal investment and wealth-management side of the transition.
Business valuation, transaction structure, sale negotiations, legal matters and individualized tax advice should remain with the appropriate professionals.
Useful to Understand
01
Your current personal investments
02
How much wealth is concentrated in the business
03
Your expected financial needs after the transaction
04
The level of investment risk appropriate after the sale
05
How much liquidity you may want to maintain
06
What your future portfolio may ultimately need to accomplish
09Independent Perspective
Already Have a Financial Advisor?
A significant liquidity event can be a reasonable time to get another perspective on your advisory relationship.
Your financial circumstances after selling a business may look completely different from when your existing investment strategy was originally created.
An independent portfolio review can help you evaluate:
-
01
Your existing investment allocation
-
02
Current investment risk
-
03
Diversification
-
04
Advisory fees
-
05
Investment expenses
-
06
Portfolio complexity
-
07
How a future or completed liquidity event changes the overall strategy
You do not need to leave your current advisor simply to ask another investment professional for an opinion.
Get a Financial & Portfolio Second Opinion
10The Gold Coast Relationship
Why Business Owners Work With Gold Coast Capital Management in Chicago
Direct Access to Dragan Mark Filipovic, CFA®
Every client works directly with Dragan, rather than being passed to a junior advisor or rotating relationship team.
Approximately 20 Years of Financial Experience
Dragan brings approximately two decades of experience across investment banking, finance and wealth management to his work with individual investors.
Personalized Investment Management
Your portfolio is developed around your goals, risk tolerance, time horizon, liquidity needs and broader financial circumstances.
Independent Fiduciary Advice
Gold Coast Capital Management provides investment advice within a fiduciary relationship without proprietary investment products or sales quotas.
Transparent 0.50% Advisory Fee
Gold Coast Capital Management charges a straightforward 0.50% annual advisory fee for ongoing advisory services.
Charles Schwab Custody
Client investment assets remain independently custodied at Charles Schwab and held in the client's name.
11Questions & Answers
Frequently Asked Questions
Selling a business can significantly change your financial position.
A financial advisor focused on investment management can help determine how new liquidity should fit with your existing assets, goals, risk tolerance and long-term investment strategy.
There is no single investment strategy appropriate for every business owner.
Before investing sale proceeds, it can be useful to evaluate your liquidity needs, financial goals, time horizon, tolerance for investment risk, existing assets and relevant tax considerations.
Not necessarily. A major liquidity event can justify taking time to understand your new financial circumstances and establish an investment framework before committing substantial capital to a long-term portfolio.
Gold Coast Capital Management focuses on investment planning, portfolio management and related wealth-management services.
The firm does not provide business valuation, investment banking, transaction negotiation, legal advice or individualized tax advice. Those services should be handled by appropriately qualified professionals.
Yes. Gold Coast Capital Management offers complimentary portfolio reviews for investors who want an independent perspective on their current investment strategy.
You do not need to transfer your assets or change financial advisors simply to request a review.
Yes. Gold Coast Capital Management serves business owners and individuals experiencing major liquidity events throughout Chicago as well as clients nationwide where the firm is properly registered or exempt from registration.
Schedule a Consultation
Build a Strategy for the Wealth Beyond Your Business
Selling a business may be the end of one financial chapter. It can also be the beginning of another. If you are preparing for a liquidity event or deciding how recently received business-sale proceeds should be invested, start by understanding what the capital needs to accomplish next.
Speak directly with Dragan Mark Filipovic, CFA® about your goals, current investments and the financial life you are building beyond the business.
Speak Directly With Your Advisor
(847) 899-7986
info@goldcoastcapm.com
Serving Chicago, IL and clients nationwide.
Gold Coast Capital Management, LLC is a registered investment adviser. Registration does not imply a certain level of skill or training. Advisory services are offered only to clients or prospective clients where Gold Coast Capital Management, LLC and its representatives are properly registered or exempt from registration. Gold Coast Capital Management does not provide business valuation, transaction advisory, individualized tax or legal advice. Clients should consult qualified transaction, tax and legal professionals regarding their individual circumstances. Past performance does not guarantee future results.