Are you planning an IPO?
With the backdrop of a strong Asian economy driving IPO activities, the focus of business owners planning for an IPO tends to be on the advantages that a successful listing can bring to the company. The importance of personal wealth planning is often neglected.
Whether the aim of an IPO is to raise capital or as an exit strategy, proper wealth planning done in advance of an IPO can bring many benefits, such as minimization of asset valuation issues, asset protection, avoidance of probate, and ease of transfer of assets. While commonly employed wealth planning vehicles such as an investment company have proven to be effective, as an alternative, a properly structured private trust offers a number of features that distinguishes it from the others.
“A Trust is a relationship in which the Trustee holds legal title to assets for the benefit of the Beneficiaries.”
A Pre-IPO Trust generally refers to a trust structure that is established to hold shares of private companies before listing.
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