Build wealth beyond the business.

In the Truist Purple Paper® Managing personal wealth beyond the business, hear from Truist specialists who help owners protect their personal future with sophisticated strategies.

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Over-concentration is a core risk for business owners

Most owners have the bulk of their net worth tied up in their company. That concentration is a natural result of business success and confidence, but it also creates personal financial risk if left unmanaged.

In this Truist Purple Paper®, you’ll find insights into the unique ways business owners should plan, diversify, and structure their personal and business balance sheets to support an individual wealth strategy that evolves alongside the company and builds on its strengths.

One business creates two risk profiles for the owner.

The business can tolerate—and often requires—risk in pursuit of growth. Personal wealth, by contrast, benefits from durability and protection.

Business risk profile

Built for growth
Highly concentrated
Reinvestment can increase value

Personal wealth risk profile

Built for stability
Requires diversification
Liquidity can protect value

“Many entrepreneurs are naturally wired to go all in … But it’s just as important for them to maintain adequate personal liquidity rather than invest every dollar into the business, so they’re protected if the unexpected happens.”

Julie Farah
Senior Trust Advisor, Truist Wealth

The incoming transition window

A survey of owners suggests while most are planning to exit their business in the next few years, their personal financial security remains tied closely to their company.

75% of business owners would like to exit their company within 10 years,

with 70% saying they would need to harvest the value of their business to support their lifestyle post-exit^{Disclosure 1}.

Three principles for building your parallel plan

To help preserve both the growth potential of your company and the flexibility to support your family and future lifestyle independent from your company, you need a personal wealth plan that evolves in parallel with your business plan.

Separate strategically.

Build personal wealth alongside your business so long-term security isn’t dependent on its day-to-day performance.

Diversify deliberately.

Gradually convert concentrated business equity into a broader mix of assets to reduce risk and expand flexibility.

Structure for adaptability.

Regularly revisit your financial and ownership structures to make sure they continue to support changing business and personal goals.

“If an owner wants to keep cash in their business, we make sure they’re getting the best return for it. If they’re not married to keeping it there, we want to encourage them to move it onto their personal balance sheet.”

Victor Santiago
Senior Wealth Strategist for Wealth Financial Planning, Truist Wealth

Four ways to help take concentration risk off the table

Different strategies differ in complexity and the impact they have on the business structure. An experienced wealth team can use each of these, or a combination of them, in your personal wealth plan.

Taking action on that plan helps to preserve your company’s hard-earned growth potential and give you more opportunities on the personal side.

Systematic distributions

Low complexity, low structural impact
Scheduled transfers from the business to your personal balance sheet.

Retirement plan/deferred compensation

Medium complexity, medium structural impact
Structured contributions that shift value into tax-advantaged vehicles.

Strategic leverage

Medium complexity, medium structural impact
Borrowing against business value to create liquidity, potentially without changing ownership structure.

Partial recapitalizations

High complexity, high structural impact
Selling a minority stake of the business to unlock liquidity.

How Truist works with business owners

This Truist Purple Paper® provides a framework, but every owner’s situation is unique. Truist Wealth advisors work as one team with specialists across investing, trusts and estates, commercial banking, and more to help you build a lasting foundation for your future. Contact our team to get started.

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From cash flow to succession planning, our advisors work alongside you to help you make business decisions that support your broader financial goals.

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Business Transition Advisory Group

Financial planning

Build wealth beyond the business.

Over-concentration is a core risk for business owners

One business creates two risk profiles for the owner.

“Many entrepreneurs are naturally wired to go all in … But it’s just as important for them to maintain adequate personal liquidity rather than invest every dollar into the business, so they’re protected if the unexpected happens.”

The incoming transition window

75% of business owners would like to exit their company within 10 years,

Three principles for building your parallel plan

“If an owner wants to keep cash in their business, we make sure they’re getting the best return for it. If they’re not married to keeping it there, we want to encourage them to move it onto their personal balance sheet.”

Four ways to help take concentration risk off the table

How Truist works with business owners

Stay informed and get connected

Find an advisor

Helpful links

Investment and Insurance Products:

Limited English Proficiency Support:

New York City residents:

Borrowers with Limited English Proficiency (LEP) needing information can use the following resources:

Build wealth beyond the business.

Over-concentration is a core risk for business owners

One business creates two risk profiles for the owner.

“Many entrepreneurs are naturally wired to go all in … But it’s just as important for them to maintain adequate personal liquidity rather than invest every dollar into the business, so they’re protected if the unexpected happens.”

The incoming transition window

75% of business owners would like to exit their company within 10 years,

Three principles for building your parallel plan

“If an owner wants to keep cash in their business, we make sure they’re getting the best return for it. If they’re not married to keeping it there, we want to encourage them to move it onto their personal balance sheet.”

Four ways to help take concentration risk off the table

How Truist works with business owners

Stay informed and get connected

Find an advisor

Helpful links

Disclosures

Investment and Insurance Products:

Limited English Proficiency Support:

New York City residents:

Borrowers with Limited English Proficiency (LEP) needing information can use the following resources:

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