AiPi examines the strategic paths available for a variety of business entities within the context of the personal financial affairs of the owners. Our thesis is that owners, when determining a strategic path for their company, should understand the economic impact of their choices on both the company and their personal finances.
Every business owner has the following three basic choices: 1) maintain the business operations in their current form; 2) obtain funding for the business in an effort to scale operations/revenue; or 3) sell or otherwise liquidate the business.
Each of these decisions has a unique impact on the business owners’ long term financial plan. While traditional consulting evaluates strategic options based on a determination of the best interests of the business, AiPi also calculates personal economic impact for business owners in terms of:
- Investment risk
- Cash flow
- Investment potential
- Estate planning and wealth transfer
In practice, we first assess the personal goals and objectives of the business owner. We then develop a strategic path analysis for the company, estimating the personal economic impact if the owner maintains, funds, or sells the business. Finally, we help the owner decide which kind of transaction is the best fit, given both personal and company goals. Examples of a sale transaction, for instance, might include: an ESOP; family succession; sale to a strategic buyer; sale to a financial sponsor; dividend recapitalization, etc.