The One Percent Solution

An Introduction for Wealth Managers and Business Owners to the Concept of Managing Pre-Liquid Wealth

What is the solution to financing the expenditures necessary to manage the wealth that is tied up in closely held businesses? The solution is so obvious that we overlook it, thinking that such activities either are too expensive, too time-consuming, or worse, not a high priority. For owners of closely held businesses, the solution lies in the decision to treat their ownership interests as an investment. This book introduces the concept of the One Percent Solution – a new and powerful way to manage all the wealth, both liquid and pre-liquid, for the benefit of the business owner (as well as the wealth manager and possibly other professional advisors).

“This book introduces the concept of the One Percent Solution—a new and powerful way to manage all the wealth, both liquid and pre-liquid, for the benefit of the business owner…”

The One Percent Solution 
An Introduction for Wealth Managers and Business Owners to the Concept of Managing Pre-Liquid Wealth

(Complimentary)

TABLE OF CONTENTS

INTRODUCTION
THE ONE PERCENT SOLUTION

Wealth Management Principles
Liquid vs. Pre-Liquid Assets
One Percent Solution Activities
What is the Yield, or Return of a Business?
There’s (Almost) No Such Thing as a Free Lunch
One-Percent Solution: Top Ten Questions
Liquidity (and Diversification) without Selling

Implement a Dividend Policy
Declare a Special Dividend
Dividend Recapitalizations
Repurchase Stock
Execute a Leveraged Stock Redemption
Execute a Combination Redemption/ Special Dividend
Partial Management Buy-In/Installment Sale
Management Buy-In with Outside Equity
Seek Private Equity Investment
Conduct a Private Equity Recapitalization
Install an Employee Stock Ownership Plan (ESOP)
Execute a Private Merger with Partial Redemption

FINAL THOUGHTS