A conversation with Brian Carter, a partner at Plante Moran, on strategies for families preparing for liquidity events (e.g., selling a business). Key strategies include developing contingency plans (Plan A, B, and C), considering both financial and emotional/family dynamics impacts, and planning far in advance. Post-liquidity, many families form family offices to manage wealth, preserve legacy, and maintain unity through shared investments and philanthropy. In turbulent times, the ability to take a long-term view helps families make prudent, less reactive decisions.
David Shaw:
What strategies are families using to prepare for their coming liquidity events, and how can they best navigate turbulent times? I’m in conversation with Brian Carter, partner and leader of Plante Moran’s Family Office Services Group. With more than 20 years of experience serving family offices and business owners, he provides strategic advice in matters regarding family office structure, charitable giving strategies, and other income tax planning opportunities.
So Brian, what key strategies are family businesses using to prepare for their future liquidity events?
Brian Carter:
Sure, that’s a good question. We’ve had a lot of conversations recently with clients exploring liquidity options. The biggest takeaway for family offices or businesses is having a Plan A, Plan B, and Plan C. Things don’t always go according to plan, so planning ahead—two, five, even ten years down the road—is essential. This includes financial analysis, liquidity needs, income and estate tax implications, and involving key decision makers and advisors.
Successful families look beyond financial impact—they consider what the liquidity event means emotionally and relationally. Often, the family business is the unifier, passed down through generations. A liquidity event is a major change and needs to be considered from the perspective of family dynamics and legacy. Families that succeed are those who address these conversations early and thoroughly, considering buyers (strategic, private equity, or key executives) and what is best for both the family and the business.
David Shaw:
So after that liquidity event, it’s common to think about something to replace the family business, such as a family office. Exactly. You know, taking the legacy that the family has built and then continuing to structure what the future might look like. So can you talk a little bit about that migration from family business to family office?
Brian Carter:
Sure. That’s the natural progression—moving from a successful business through a liquidity event to the “now what?” phase. Each family tackles this differently. A family office manages multi-generational wealth and often becomes the new unifier.
This can include pooled investment strategies and philanthropic initiatives like family foundations, which keep the family engaged and the legacy alive. Starting a family office requires decisions on structure, operations, investing, and involvement levels. Ultimately, it’s about the family’s goals, strategies, and purpose—preserving wealth and values across generations.
David Shaw:
We are in interesting times, as they say. How do families, especially in the context of liquidity events and family offices, navigate turbulent times?
Brian Carter:
Turbulent times indeed. The biggest asset families have in these situations is time. A long-term strategy and time horizon help them navigate uncertainty. Family businesses and offices aren’t focused on short-term results—they think in generations.
That long view allows prudent decision-making, especially in investment and asset allocation. Families can lean on their advisors, industry experience, and past lessons. While they stay aware of short-term issues and remain agile, the long-term focus gives them stability and perspective.
David Shaw:
Excellent. Well, thank you very much.
Brian Carter:
Great, thank you.
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