Going Pains – The problems of selling a business and how to overcome them

Selling a business is a life-changing event. The challenges may start with negotiating the terms of the agreement. But then comes the problem of what to do with a big cash windfall and how to deal with your new life.

This may not seem much to worry about for many people – and you may find sympathy in short supply from friends and acquaintances – but over the years we have worked with many entrepreneurs, and we do understand. We know the insights we have gained in helping them will help you.

In helping you think differently about your potential new life we can help you make the most of it. In the end, that is what we are here for. We are not simply custodians and managers of money for our clients. We are trusted advisers who can be relied on for expert advice and support.

What to do with the proceeds

Our approach to financial planning and wealth management has helped many people who have sold a business successfully. We divide your wealth between four main strategies;

Living – This is the money you need to live on. This is your core wealth and needs to be quarantined and managed carefully to protect it from inflation and to generate the returns you need. We use a blend of passive vehicles to give you the highest probability of success and the lowest risk and costs. This enables us to capture an efficient market return for a known level of risk and eliminates stock-specific risk – the danger of choosing the wrong stocks.

Sharing –  This is money for your family. Giving them the right amount to help them on their way while still leaving them with the drive and ambition to achieve things on their own is not easy. It needs to be done in a structured, controlled, tax-efficient and timely manner.

Leaving – You may be happy simply to give the money to already established charities. You may want to set up your own charitable foundation. This can be complex and needs to be thought through carefully.

Enjoying – Many will want a pot of money that they can play with. It may be for buying a Ferrari. It may be for angel investing – taking a risk on a new generation of start-up entrepreneurs. Earmarking money for this strategy can make it easier for you to let rip and have fun. Meanwhile, your core wealth is safely quarantined in a separate asset allocation, managed prudently by a skilled investment professional, reducing the risk of you making a mis-step, jeopardising your family’s security and destroying all your previous hard work.

How Weatherbys can help you

Ideally, we will work alongside you and your accountants before you sell your business. This way we can help ensure you have set up your ownership structure tax effectively.

By developing a personal cash flow plan for you, we help you ascertain what you need from a sale.

Alongside your accountants and lawyers, we support you through the sale process and structure your finances to enable you to move smoothly on to the next stage of your life – whether that is starting a new business venture, creating a new working life, retiring, philanthropy or a mix of these.

We manage your investments for you cost effectively and tax efficiently and actively manage your ‘retirement’ income stream. We can help you with ongoing tax challenges. And, by regularly reviewing and updating your cash flow plan, we ensure you stay on course – whatever direction your life takes next.

Important information

Tax laws are subject to change and taxation will vary depending on individual circumstances. Investments can go up and down in value and you may not get back the full amount originally invested.