Reaching the summit is only part of the journey
Founders often spend years preparing their business for sale. Far fewer spend time preparing themselves for what comes next.
Having worked in private banking and wealth management for more than four decades, Nick has supported entrepreneurs through one of the most significant transitions of their lives. While an exit can create substantial wealth, it also introduces a new set of financial and personal challenges that many founders underestimate.
To illustrate this, Nick often uses an Everest analogy.
“Good planning means you do not just plan for being successful. You plan beyond the point when you think you have reached your peak, and you think about the consequences of the descent.”
Understanding your core wealth
Many founders have a figure in mind that represents success. Whether it is £5m, £20m or significantly more, there is often a personal “walk away number” attached to the business.
The challenge is that company value and personal wealth are not the same thing.
What a founder ultimately receives depends on a variety of factors, including ownership structures, taxation, debt, earn-outs, future spending needs and family circumstances.
Before discussing investments or legacy planning, Nick encourages founders to answer a much simpler question: how much do you actually need?
“My firm suggestion to anyone doing a financial plan is to start with how much you need to live the life you want. That is your core wealth. That is maintaining your lifestyle for the rest of your days.”
Once founders understand the level of capital required to support their lifestyle and long-term goals, they can make more informed decisions about investing, gifting, philanthropy or future ventures.
Why founders should start planning early
Many founders recognise the importance of preparing their business for sale. Fewer appreciate the value of preparing their personal finances years in advance.
Nick regularly speaks to entrepreneurs who are focused on growing their business but have not yet thought about the financial implications of a future exit.
However, decisions made two or three years before a transaction can have a significant impact on the eventual outcome.
This includes reviewing:
- Share ownership structures
- Spousal ownership arrangements
- Trust and pension planning
- Separation of personal and business assets
- Capital Gains Tax considerations
Family conversations matter
The impact of an exit often extends well beyond the founder.
Family members may have very different attitudes towards wealth, risk and future priorities. One person may view the proceeds as security, while another may see them as an opportunity for growth, philanthropy or lifestyle choices.
This is why Nick encourages families to discuss their values openly.
“The most compelling thing I have seen is sitting down and writing vision and values.”
Considering questions such as “What is the purpose of this wealth?” and “What do we value in our family?” can help shape decisions around inheritance, education, philanthropy and future family governance.
The emotional side of an exit
Some founders celebrate the moment a deal completes. Others find the adjustment more difficult than they anticipated.
According to Nick, there is no single emotional blueprint.
“I can give you examples of people running around the room celebrating, and I can give you examples of people who feel lost and have no real purpose in life.”
For many entrepreneurs, their business provides identity, routine and a sense of purpose. While an exit may create freedom and financial security, it does not automatically create clarity about what comes next.
That is why personal planning should sit alongside financial planning throughout the process.
Planning for the descent
Nick’s Everest analogy highlights an important truth: the preparation required to reach the summit is not the same preparation required to get back down safely.
For founders approaching an exit, his advice is simple:
- Decide how much is enough before deciding what to do with the rest.
- Start planning years before a sale rather than after.
- Review ownership structures and personal finances early.
- Protect your core wealth before taking additional investment risk.
- Think about purpose, family and lifestyle goals alongside financial objectives.
An exit can crystallise the value of everything a founder has built. It does not automatically provide a roadmap for what comes next.
The earlier those conversations begin, the better positioned founders will be to make the most of the opportunities that follow.
Start a conversation with us
If this article has struck a chord and life after a business sale is high on your agenda, and you would like to discuss it further, please contact Nick Gornall on +44 (0) 7436 239639 or ngornall@weatherbys.bank.
Alternatively, you can find out more about the dedicated private banking and wealth management services Weatherbys Private Bank provides for entrepreneurs and business founders here: https://www.weatherbys.bank/private-bank/specialist-banking/entrepreneurs