By: Maria Williams

“The problems we (at Masterpiece) solve aren’t readily known.” That’s because successful business transitions or exits are few and far between. Retaining value while successfully making such a large-scale transition is incredibly difficult, treading on precarious business territory. Only 30% of businesses marketed for sale end up selling successfully.

Carlos Lowenberg is the CEO and Founder of Masterpiece Capital and Masterpiece Partners. These two companies’ singular brand forms a business wealth firm focused on executive retention and building, protecting, and preserving business owners’ wealth with advanced coaching and consulting services.

The company has twenty-five years of focus on helping businesses increase their value. They have designed over 100 executive retention plans. On top of this, the Masterpiece companies have extensive philanthropy and business value/ enhancement expertise, having assisted with many successful transactions and plan implementations.

With the flexibility of the two companies, the Masterpiece companies have more freedom to deliver to business owners. The brand can offer its clients an unparalleled holistic wealth-building, protecting, and preserving experience in this format. They can also bring together a network of advisors and consultants to assist their clients in successfully making the transition.

The Realities of Exits:

Of those 30% of businesses that do sell, 75% of business owners regret selling their company only one year later. Proper exit planning (which begins well before the transition) is the only way to properly prepare the company and the owner to maximize the value and minimize regrets. The Masterpiece brand specializes in precisely this. 

The Goals of a Business Transition:

Business transition planning is a holistic, business-owner-centered approach to ensure that the transition meets all of the owner’s goals:

• To transition their company when they want and to whom they choose for the amount of money (after taxes) they need.
• Financially protect the people they care about.
• Leave a legacy of their design.

Case Study: Concrete Product Company

A company based outside of Waco, where the owner was 55 and his wife was 45. The Masterpiece team focused on what was most important to him:

• “How much do we need to live on?”
• “Can I pay off all my debt?”
• “What happens when I go?”

Their needs necessitated financial, estate, legacy, and tax planning. Estate planning was done before the exit to confirm that the amount he would need to retire was approximately $200,000 per year plus inflation. A successful exit would require $3,000,000 in total. The masterpiece was able to sell for $3.5 million.

A third of the company stock was put in a charitable trust, paid out over fifteen years to the owner. The income gain was spread out, saving him $280k in taxes. Fifteen years later, 10% was paid to the charity.

The Future of Masterpiece

“The planning we offer cannot be found anywhere else. Our network of advisors and consultants is valuable because we can provide super-advanced planning. We also provide a people-first, principle-based decision-making process that leads to a more valuable business, more cash flow, and more satisfaction now and in the future.”

Pushing forward, the Masterpiece companies are set on expanding their reach and impact, further serving business owners in the best ways possible.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published By: Aize Perez