Credit Suisse Private Banking USA and Columbia Business School Introduce 'Life After an Exit: How Entrepreneurs Transition to the Next Stage' White Paper

NEW YORK, Jan. 26, 2011 /PRNewswire/ -- A new report, "Life After an Exit: How Entrepreneurs Transition to the Next Stage," developed in collaboration between Credit Suisse and the Eugene Lang Entrepreneurship Center at Columbia Business School, focuses on the specific issues that entrepreneurs face following the sale of their business.

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The white paper provides entrepreneurs with perspective on two kinds of challenges after a sale: those they will face as they move on to the next phase of their lives, and those they will encounter as they learn to manage their new wealth.  This research is based upon extensive interviews with 22 entrepreneurs who have sold businesses that resulted in at least $10 million of proceeds.

"Credit Suisse is pleased to offer research that explores some of the complex, non-financial issues that many entrepreneurs experience after the successful sale of their business, and that are often not considered or discussed," says Paul Simons, Head of Wealth Management Solutions at Credit Suisse Private Banking Americas.

Case Studies

Included in the paper are nine detailed case studies that demonstrate the unique scenarios entrepreneurs face in the context of the sale of their business, considering both the challenges and opportunities around their transition.  The white paper also offers recommendations to guide entrepreneurs through this period.

"From a financial/business perspective, I sold my firm at the right time, but I was not well prepared to deal with the emotional aspects of this major change," says Lynn Morgan, co-founder, MBS Value Partners, whose case study is included in the report. "I moved immediately into a senior position at a large company in order to efficiently address both my lack of identity and non-compete issues. Looking back 10 years later, I think I should have spent more time evaluating potential opportunities in the months prior to the sale and taken more time to talk to business contacts before deciding on my next move."

Key Themes

While every entrepreneur's experience is unique, in the course of the interviews conducted for the white paper, seven common themes emerged:

1. The reality of selling a venture often represents a loss of identity and community.
2. Entrepreneurs often struggle with how best to use their new freedom and how to define their legacy.
3. Family, friends and advisors are also assessing and possibly changing their interactions with the entrepreneur. Finding sources for "unfiltered" input is critical.
4. Identifying the right wealth management strategy, advisor and firm is one of the biggest challenges for an entrepreneur after a windfall.
5. The qualities that make a good entrepreneur are seldom the same ones that make a good investor.
6. Financial analysis and planning before and immediately after a sale of a venture is crucial.
7. Carefully analyzing the true importance of the company in supplying identity to oneself and one's family before the sale is critical in avoiding significant emotional stress after the sale.

"The Eugene Lang Center for Entrepreneurship at Columbia Business School was delighted to partner with Credit Suisse on this important research project," says Barbara Roberts, the lead author on the paper and advisor, The Eugene Lang Center for Entrepreneurship at the Columbia Business School. "Before this paper there was virtually no research done on the specific issues entrepreneurs face following the sale of their business.  The Center has long studied the different stages of an entrepreneur's life and is pleased that this paper fills a gap in the writings on major liquidity events."

Credit Suisse AG

Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 50,500 people. The registered shares (CSGN) of Credit Suisse's parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Private Banking

In Private Banking, Credit Suisse provides comprehensive advice and a broad range of wealth management solutions, including pension planning, life insurance products and wealth and inheritance advice, which are tailored to the needs of high-net-worth and ultra-high-net-worth individuals worldwide. In Switzerland Credit Suisse supplies banking products and services to individual clients, corporates and institutions.

Credit Suisse Securities (USA) LLC is an indirect subsidiary of Credit Suisse.  The Private Banking USA business in Credit Suisse Securities (USA) LLC is a U.S. regulated broker dealer.  It is not a chartered bank, trust company or depository institution.  It is not authorized to accept deposits or provide corporate trust services and it is not licensed or regulated by any federal banking authority.

SOURCE Credit Suisse AG