Include Personal and Financial Planning in the Sale of Your Business

Include Personal and Financial Planning in the Sale of Your Business

According to The Goldhill Group, 75% of business owners surveyed regret selling their business after it’s been sold.1   This is an alarmingly high percentage. Did these business owners not set goals for what they envisioned life would be like on “Monday” after the sale? Did these business owners not have a team of professionals surrounding them that were all aligned in the common goal of helping the business owner and his or her family meet their goals and achieve their legacy creation?

The exercise of selling a business doesn’t just mean you have a valuation of the company prepared and “go to market”. There are many incredibly meaningful steps along the way that should aid in the feeling of clarity and fulfillment once the business is sold. At the heart of this planning is an ongoing assessment of, not only the business, but perhaps more importantly, your personal and financial preparedness through this journey as well.

Personal Planning:

  • Preplanning : What will make your next act fulfilling? How do you envision spending your days after the business has been sold?
  • Family: Is your family on board with this plan? This may be a spouse, or perhaps the business is family owned and will have some of its own unique considerations.
  • Health: Are there health considerations to be aware of as this may inform timing or expediency of the sale?
  • S.T.E.P.:

• Spiritual: My life has been my business. Who do I want to be once the business is sold?

• Things: What are the material things I/we want or want to get rid of?

• Experiences: What are the experiences I hope to enjoy?

• People: Who are the people most important to me?

Financial Planning:

  • Wealth goals: What lifestyle do I want and what do I need to live it well?
  • Financial modeling: Can my portfolio support this lifestyle?
  • Spending needs versus wants: Do I need “X” or do I just want “X”?
  • Budgeting: How does spending change in retirement, if at all?

If you and your  family aren’t prepared in this journey and feeling organized and engaged with each other and your professional team, getting to the finish line by selling your company may not feel like a celebration or creation of true value.

Having a professional advisory team is important, particularly when considering the sale of your business. In addition to a Wealth Manager, other members of these initial conversations and core team are an estate planning attorney, a tax advisor/CPA, and a business attorney. In preparation for your exit, the professional team will extend beyond this core team and may include: a business  valuation expert, growth strategist, insurance broker, marketing professional, real estate professional, commercial and investment banker, family business broker, and others. Each professional brings their respective industry experience which is invaluable to a successful exit or business succession.  

Imagine that in your work with your Wealth Manager, you design your dream retirement but with your current asset accumulation (excluding the value of your business), the cash flow analysis estimates that you aren’t able to achieve this retirement vision. In this modeling, your Wealth Manager can help estimate how much cash you need from the company sale to achieve this goal. This will be critical to know early in the process.

To help prevent you from becoming another statistic of a business owner who regrets the sale of their company, be sure to start the planning process of this milestone life event early. Your Sand Hill team enjoys collaborating with your full professional team and our passion is working with our clients to help them achieve their goals.

1-The Goldhill Group. Most Owners Regret Exiting Their Business. Here’s Why a Business Exit Strategy Is Important.

Articles and Commentary

Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.

Video Presentations

All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.

Recent Posts

Jun 5, 2024
CNBC Halftime Report: Software Market Update| May 30, 2024
Sand Hill News
Sand Hill News
CNBC Halftime Report: Software Market Update| May 30, 2024

Brenda Vingiello, Sand Hill's Chief Investment Officer, joined the Halftime Report to discuss the software space. This content was produced and provided by an unaffiliated

read more
May 6, 2024
CNBC Last Call: Market Risks | April 29, 2024
Sand Hill News
Sand Hill News
CNBC Last Call: Market Risks | April 29, 2024

Sand Hill Global Advisors Brenda Vingiello joins CNBC Last Call to share her thoughts on the current markets. This content was produced and provided by

read more
Apr 29, 2024
Moving Past the Pandemic Environment
Brenda Vingiello
Brenda Vingiello,  CFA
Moving Past the Pandemic Environment

There is a common saying that time heals almost everything. Yet, even as we embark on the fifth year since the pandemic began, most of

read more

Stay up to date, receive email updates from Sand Hill directly to your inbox!