Thinking about selling? What to consider before exiting
We are pleased to present another guest article from Compare Wealth Managers which talks about how to plan and manage the wealth you have built in the value of your business.
Before initiating the sale of your business, thorough preparation is crucial. Compare Wealth Managers emphasises the importance of a comprehensive exit strategy, which includes legal and accounting due diligence, surplus cash extraction, and business continuity planning. Engaging skilled legal, accounting, and wealth management professionals early in the process ensures that both you and your business are well-positioned for a successful transition.
Another vital aspect is timing. Determining the optimal time to sell your business involves analysing various factors, including market conditions, industry trends, and the local economy. Selling during a period when your business is performing well, and market conditions are favourable can significantly impact the sale price and terms.
After the sale, it's essential to have a plan for managing the proceeds. This includes investment strategies, tax planning, and setting up trusts or other structures to protect and grow your wealth. A wealth manager can guide you through these decisions, ensuring that your financial future is secure.
Retirement Planning – and even early retirement
For many business owners, the proceeds from a business sale constitute the primary source of retirement funds. A wealth manager can assist in developing a retirement plan that aligns with your lifestyle aspirations, ensuring that your funds are allocated appropriately to support long-term financial stability.
If early retirement is among your goals, a wealth manager can devise strategies to achieve this by optimising your savings and investments. They can provide insights into how much money you'll need post-retirement and create a plan to reach that target, considering factors such as life expectancy, desired lifestyle, and potential healthcare costs.
Selecting the right wealth manager is a critical step for business owners planning to sell their enterprises. By understanding the services offered, asking pertinent questions, and focusing on comprehensive financial planning, you can ensure that your financial future is in capable hands. Early and thorough preparation, coupled with the guidance of experienced professionals, can lead to a successful business sale and a secure financial future.
For more detailed information on wealth management and related services, you can visit the Compare Wealth Managers' Knowledge Centre.
We hope that gives some good guidance. At Hornblower, we are always happy to discuss your plans for the future, looking at all the options for your exit as well as providing a free indicative valuation. Whilst our business is about selling businesses, we help you decide whether a business sale is right for you and your business before you engage us. Do get in touch to arrange a chat.
