Stock Option and IPO Planning

Darrow Wealth Management regularly works with employees who have incentive stock options or nonqualified stock options. Through our ongoing advisory relationship, we can help you make a plan to exercise and diversify stock. If your employer is going public, merging, or getting bought out, work with an advisor experienced with strategic stock option planning and the tax implications.

If you’re expecting sudden wealth from a liquidity event or IPO, we’ll work to help you develop a strategy to make the most of the windfall.

Financial Advisor for Employee Stock Options

Especially for early employees, stock options can create a major liquidity event that transforms your financial life. To maximize the opportunity, it’s critical to get the right team of advisors in place before making irreversible decisions with your stock options.

Our team of CERTIFIED FINANCIAL PLANNER™ professionals can work to help you:

  • Plan for an IPO or acquisition
  • Discuss your goals to identify how to best utilize stock options in your financial plan or retirement plan
  • Develop an exercise strategy considering tax implications (like the alternative minimum tax) and risks of holding a concentrated stock position
  • Analyze different holding periods when developing a liquidation strategy, factoring in risk, cash needs, and taxes
  • Coordinate the approach with your CPA and tax advisor
  • Decide on a strategy to best use the proceeds, including funding multiple goals and investment management services to help you diversify sudden wealth
  • Understand how vested and unvested stock options may be treated if you leave the company or retire
  • Explore cashless or sell-to-cover exercises of stock options
  • Implement a multi-year diversification strategy through an ongoing wealth management advisory relationship

 

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Wealth Management Services

Darrow Wealth Management is a fee-only financial advisory firm and full-time fiduciary. We regularly work with employees and executives with stock options, particularly after an IPO, acquisition, or direct listing.

By integrating financial planning with investment management, our goal is to help busy professionals build and grow their wealth.

More Than Money Management: Explore Financial Planning Capabilities

Nationally Recognized Wealth Manager

Kristin McKenna, CFP® is a Senior Contributor for Forbes and is often featured as a subject matter expert in national news media.

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Stock Option Insights: From Acquisitions to IPOs

Stock options SPAC Merger IPO
IPO

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Stock options after IPO
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Stock options IPO financial advisor
Building Wealth

What Does an IPO Mean for Employees? What to Do When Your Company Goes Public.

There were nearly 500 IPOs in 2020. According to data from FactSet, that's just 67 shy of the combined total between 2015 and 2017. And the race to go public isn't slowing down. As of the end of February 2021, more than 230 companies have gone public this year alone.…
Stock options after IPO
Stock options

What Happens to Stock Options When a Public Company Goes Private?

With so much emphasis on IPOs, investors are sometimes surprised when publicly traded companies decide to go private. There are many reasons a company may choose to go private. Dry powder flowing into private equity funds only fuel the trend. For employees of a public company going private via buyout,…