Consumer Products Brand (Specialty Food & Beverage)
Case Study 04
the choice to work
Primary Goals:
“Turn appreciation into lifetime income, reduce the immediate tax hit, and expand the buyer universe.”
Profile
- Entity: LLC taxed as partnership (pre-planning)
- Size: ~$30M EV; strong DTC + wholesale velocity; retailer expansion pending
- Owner: Early 60s; wants income, a legacy plan, and some ongoing involvement
Pain Points
- Large unrealized gains; projected $8M+ tax bill on sale
- Broker had a limited buyer list; mostly smaller strategics
- Family wanted a long-term legacy and philanthropic arm
How We Helped
Think
“Turn appreciation into lifetime income, reduce the immediate tax hit, and expand the buyer universe.”
Problem
Selling outright means a large tax bill, fewer bidders, and no structure for income or legacy.
Feature (Working with Compound Advisory)
CRT for partial sale: Moved a portion of units into a Charitable Remainder Trust to defer/avoid capital gains on that slice and create a lifetime income stream.
Freeze–Squeeze–Burn:
- Freeze appreciation outside the estate (trust planning).
- Squeeze via a light preferred/common recap and compensation normalization pre-valuation.
- Burn remaining estate value through grantor trust tax burn and annual exclusion gifting.
Market prep: With IndustryPros, elevated packaging/brand story, built a retailer sell-in deck, and ran a broader auction including larger strategics and PE brand aggregators.
Benefit
- Taxes: Modeled ~$5M reduction in immediate tax impact (CRT + estate structure).
- Value: Wider buyer pool and sharper brand positioning drove ~18% higher bids.
- Income + Legacy: Predictable CRT income and a funded giving vehicle; family retained a small stake via trust.
Your Compound Retirement Clarity Assessment™
A complimentary 3-step process showing you how to reduce taxes and improve your retirement success.
It also helps you evaluate our services and make an informed decision about working together.