If your company plans to go public, just went public, or got acquired, take a look at our packages below.
Our team specializes in working with clients who receive equity compensation, including stock options and restricted stock units (RSUs). As a client of TPWA, you can expect that we will:
- Educate you on the type of options you own and how they are taxed.
- Review the current value of your options, as well as the potential pre-tax and post-tax values of the future.
- Coordinate with your tax preparer to minimize the tax impact of ordinary income, capital gains, and the alternative minimum tax (AMT).
- Discuss the potential upside, risks, and tax consequences of various scenarios.
- Develop a plan detailing how many options to exercise, which ones to exercise, as well as when to exercise.
- Review strategies and vehicles to diversify concentrated positions and/or defer tax liability.
Our IPO Planning Packages
Starter
Appropriate for individuals with RSUs
Restricted Stock Units Strategy
- When should I sell?
- What tax withholding percentage should I select?
- CPA collaboration
- If the value of my stock goes up or down, how will it affect me?
Liquidity & Cash Flow Considerations
- Investment planning
- Cash flow planning
Starting at $6,000
Essentials
Appropriate for individuals with ISOs/NQSOs
Stock Options Exercise Strategy
- ISO/NQSO considerations
- When should I exercise?
- How much should I exercise?
- Cashless Exercise considerations
- How should I fund my exercise?
- How does Alternative Minimum Tax (AMT) work?
- Early Exercise considerations and 83b Election assistance
- What’s my strategy during a lockup period?
- Tax considerations & CPA collaboration
- If the value of my stock goes up or down, how will it affect me?
- Up/down scenario modeling
Liquidity & Cash Flow Considerations
- Stock sale strategy
- Federal and State Tax considerations
- Investment planning
- Cash flow planning
Starting at $8,000
Complete
Appropriate for individuals with ISOs/NQSOs
Stock Options Exercise Strategy
- ISO/NQSO considerations
- When should I exercise?
- How much should I exercise?
- Cashless Exercise considerations
- How should I fund my exercise?
- How does Alternative Minimum Tax (AMT) work?
- Early Exercise considerations and 83b Election assistance
- What’s my strategy during a lockup period?
- Tax considerations & CPA collaboration
- If the value of my stock goes up or down, how will it affect me?
- Up/down scenario modeling
Liquidity & Cash Flow Considerations
- Stock sale strategy
- Federal and State Tax considerations
- Investment planning
- Cash flow planning
Tax-efficient Diversification Strategies
- Exchange Funds
- Qualified Opportunity Zone investments (real estate)
- Charitable giving of highly appreciated stock
Concentrated Stock Strategies
- Hedging to protect against a decline
- Put options to create price floor
- Covered call options
Starting at $12,000
Frequently Asked Questions
When is the right time to start working with a wealth advisor before a liquidity event or IPO?
We’ve found that it’s helpful start working with a financial advisor 6-12 months before a liquidity event or IPO. If you have options that can be exercised, it can make sense to start as early as the options are exercisable. This gives time to plan proactively for cash flow, taxes, and investment strategy. We can also help model various outcomes depending on compensation type (ISOs, NSOs, or RSUs) and plan around lock-up periods. Starting early helps ensure you’re making informed decisions before your equity becomes liquid.
What’s included in your pre and post-IPO planning services?
Our IPO planning includes CPA collaboration to determine your potential after-tax proceeds, reviewing 83(b) elections, education about 10b5-1 plans (and drafting these when appropriate), and planning for post liquidity events. We also outline strategies to reduce concentrated stock and plan for cash needs during lock-up periods. After the lock up period expires, we help implement the stock sale strategy, diversify your investments, and consider tax planning strategies. The goal is to turn your equity into a long-term financial foundation.
Can you help if my company hasn’t announced an IPO date yet?
Yes, we can help even if your company hasn’t announced an IPO date. Planning early allows us to review your equity, explore private secondary market options, and build a long-term strategy. We also help with tax planning, cash flow modeling, and scenario analysis. Early proactiveness and understanding of your options, puts you in a stronger position once the IPO timelines becomes clearer.
Can you still help if I’ve already had my IPO or liquidity event?
Definitely! We help even more after your liquidity event than we can beforehand. Post-liquidity, our focus is on helping people take steps towards securing a financial foundation, diversifying tax efficiently, passive income strategies, retirement planning, estate planning, and charitable giving.
