As a business owner, you eventually will face the task of
monetizing the equity trapped in your privately held business,
which likely is your largest asset. This is made more complicated
by current economic conditions, which are causing individual
retirement accounts to decrease dramatically and home values to
Examining how your company's value can be extracted is an
integral part of the exit planning process and something to
consider as you move toward retirement.
There are two ways to extract value from your business. First,
you draw income directly from the business in terms of salary,
personal and business expenses, bonuses you pay yourself and
retirement plan savings. A second and much more important income
route—particularly in light of current economic
conditions—is retaining the equity, or nonliquid part, of
your business (in other words, monetizing the wealth trapped...
Log in or register for FREE access to this article and other Professional Roofing online content.