Ahmie E. Baum is the CEO and Founder of Interchange Capital Partners. Using a collaborative and comprehensive process developed over 42 years working with wall street banks and financial Services firms; Interchange Capital Partners provides family office and transition strategy services for family businesses. Interchange Capital Partners sits between the known and the unknown helping families protect and grow their family capital.
Episode Highlights Here:
Brett
What’s the number one secret to helping people understand and start to create a vision for when they’re exiting their business?
Ahmie
Yeah, I mean, I think you said it, you know, business owners tend to believe that it’s not going to happen. And, you know, they’re busy running their businesses, they’re working in the business. And, you know, this requires a lot of expertise, a lot of time and energy. And, frankly, for a lot of people, you know, they bid their businesses their identity. And so they’re really not looking out to do this, I’ll get to it, or, you know, eventually, you know, someone will knock on the door. So it’s really the recognition that we know it’s inevitable, we’ve seen the good, the bad and the ugly around it. But business owners have a tendency not to focus on this for a variety of reasons around it. And then, as I said, sometimes they get fortunate. It works. But a lot of times, it doesn’t. So it’s really a challenge, because it’s complicated. There’s a lot of moving pieces, it requires a lot of different investment professionals and got
Brett
a lot going on. And they’re they tend to be in the business working on in the business, and not necessarily if they may be working on the business designing it, but they’re not actually working on the exit plan or potential exit plan, or strategically building the business in a way to exit in a great way. So what’s the number one way for business owners to make sure that they’re planning in the future, and not just being stuck in the business?
Ahmie
Yeah, I think the first step is they have to do some inventory, they’ve got to do a personal balance sheet, a business balance sheet, they have to figure out what it is that they’re going to need, so that they can cashflow their life, we’d like to make sure that it cash flows until age 99. And then begin to see whether there’s a gap, the port, so that’s one side, you know, the issue around ownership is about future financial security. And a lot of business owners don’t feel that they have the businesses a lifestyle business and creates the lifestyle that they want. for that. The other problem is, they don’t necessarily know who they can exit to or transition to. Most businesses transition internally, contrary to the notion of having some buyer walk in and take it off your head. So the very first step is what we call clarity, finding out what it looks like five years from now, 10 years from now, when do you want to exit? How much do you need? What’s the tax efficient way of doing it? So it’s really a discovery process around getting clear on identifying and quantifying. And then once they get through that, then they can start working on how to maximize and protect, because it does take time, this is the most successful exits and transitions happen over the years and sometimes over decades.
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About Ahmie Baum
Ahmie E. Baum is the CEO and Founder of Interchange Capital Partners. Using a collaborative and comprehensive process developed over 40 years of practice in financial services, Ahmie has built a team that has passion for what they do that executes for each client’s unique needs. He and his team consistently strive to deliver a “WOW” client experience.
Ahmie has committed every day to helping clients and their families build financial safety nets. As a child, he experienced firsthand the challenges of financial hardship and consequently he has built his practice on the compassionate understanding of each client’s unique circumstances. Ahmie is committed to giving his clients the guidance, education and resources they need to make wise financial decisions that help them grow and protect their wealth while achieving their goals.
As a graduate from the University of Pittsburgh, Ahmie began his career with EF Hutton in 1973 and transitioned to UBS in 1993. During his 27 year career at UBS, he earned the prestigious Wealth Advisor designation. Nationally recognized, he has been named to the Barron’s Top 1,000 Financial Advisor List. Ahmie is a CERTIFIED FINANCIAL PLANNER™ (CFP®) and received the Executive Certificate in Financial Planning from Duquesne University School of Leadership and Professional Advancement.
Ahmie and his wife, Sara, have 3 children and a granddaughter; they live in the Fox Chapel area. He has found yoga, meditation and plant-based eating to enhance his values of health, love and gratitude. He enjoys wood turning, golf, reading, music and biking as well as time with family and friends. He and Sara are very active within the charitable community.
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