Recommend a strategy, alternative to an outright sale of the shares, that will satisfy Omos goals and
Question:
Recommend a strategy, alternative to an outright sale of the shares, that will satisfy Omo’s goals and alleviate his concern.
Tesando Omo is a highly successful entrepreneur. The software company that he started five years ago is now worth \($200\) million. It is a private company, and he is the controlling owner, with a 60% equity share. His only other investment is a position in the publicly traded shares of his previous employer, which he acquired by exercising stock options six years ago. This publicly traded share position has substantially increased in value and is now worth \($36\) million.
Omo recently sought financial advice from Umae Jing. After discussing Omo’s personal situation and financial goals, Jing expresses concern about Omo’s current portfolio and points out several important risk and tax-related considerations that are relevant to Omo’s portfolio.
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