Mark and Susie Donovan spent decades building a thriving construction supply company—and with the business running at peak performance, they knew it was time to begin planning their next chapter. What they didn’t know was how much complexity that transition would involve.
Their questions were clear:
- How do we reduce taxes before and after the sale of the business?
- Will the proceeds be enough to fund our retirement lifestyle?
- How do we keep peace in the family and ensure the business continues to thrive after we step away?
We worked with Mark and Susie to create a strategy that addressed all three priorities. Here’s how they reduced taxes, preserved family harmony, and created income for a confident retirement.
Reducing Taxes Before and After the Business Sale
As their income peaked in the final years before selling the business, Mark and Susie knew that smart tax planning could make a meaningful difference. We helped them optimize their 401(k) plan and add a cash balance plan, significantly increasing their deductions while accelerating long-term savings.
In their first year, they contributed $200,000 to their new retirement plan, saved about $74,000 in federal taxes, and improved benefits for key employees—lowering taxes while keeping their team in place.
When it came time to sell, we worked closely with their CPA and legal team to structure the deal tax-efficiently, helping preserve more of the proceeds for their retirement and family legacy. Thoughtful planning ensured their life’s work didn’t go to waste in unnecessary taxes.
Related: Taxes & Highly Appreciated Business Ownership and A $400,000 Tax Deduction
Turning the Sale into Retirement Income
Selling the business was just one milestone—the next challenge was turning proceeds into dependable, lifelong income. We walked through a detailed retirement income plan to define how much they needed and how to structure withdrawals for tax efficiency.
Mark and Susie had climbed the “Wealth-Building Mountain,” and now it was time to safely descend into retirement—without outliving their resources.
Related: How Much Do You Need to Retire? and Wealth Building Is Like Mountain Climbing
Protecting Family Unity and the Business Itself
Mark and Susie’s biggest concern wasn’t just the transaction—it was the transition. Mark hoped their son would take over the business, but they were both worried about how this would affect their daughter, who had chosen a different path. At the same time, they felt a deep responsibility to the employees who had helped build the company’s success.
We facilitated a series of family conversations to set clear expectations, address concerns early, and preserve trust between siblings. Behind the scenes, they formalized leadership and continuity plans to ensure the business could continue to thrive—for the family and for the team that depended on it.
To prepare for the transition, we also implemented selective bonus strategies to retain and reward key employees, an essential step in maintaining business value and continuity. It showed their team they mattered to the family and the mission of the company, while helping reduce taxes and keep key people in place for what’s next.
By combining family planning with operational clarity, Mark and Susie built a legacy of unity, not uncertainty.
Related: Ensuring Your Business Thrives When You’re No Longer There and Estate Plan or Legacy Plan?
The Donovans Today
Today, Mark and Susie are enjoying the life they once only hoped was possible—traveling more often, spending long weekends with their grandchildren, and giving back to causes they care about. But what brings them the most pride is what they still get to witness every day: their son successfully leading the company they built, continuing to grow the business with the same values they instilled.
Their daughter, while not part of the business, remains closely connected to the family plan—with no confusion, no tension, and no surprises. Everyone understands their role, their value, and their place in the legacy.
For Mark and Susie, the greatest reward isn’t just a comfortable retirement. It’s seeing their life’s work carry on—together—into the next generation.
Wondering what planning beyond the business could look like for your family?
Let’s talk about how we can help you reduce taxes, protect family unity, and confidently step into your next chapter.
Josh Whelan
CFP®, CLU®, ChFC®
Partner, Financial Advisor
About the Author
Josh sees his profession as a calling, not just a career. His motive for pursing financial planning was very personal. While working on a degree in marriage and family counseling, Josh’s father was diagnosed with multiple sclerosis. Josh decided then and there to change career paths to help his family prepare for an uncertain financial future. Financial planning became his path to serving others.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.
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