Closing a business sale is a major milestone, but it’s not the finish line. What comes after is just as important. Post-sale planning plays a critical role in making sure your years of hard work translate into lasting value. Whether your goals involve reinvestment, retirement, or wealth transfer, taking a thoughtful approach can help you avoid costly mistakes and maximize the benefit of your transaction.  

Why does post-sale planning matter? 

The M&A process doesn’t end when the deal is signed. In fact, some of the most important decisions happen after closing. Business owners shift from operator to investor, and that transition brings a new set of considerations, from liquidity management to tax strategy to portfolio diversification. 

Without a clear strategy in place, it’s easy to make decisions that may not align with your future goals. Post-sale planning gives structure to the next phase of your financial journey. 

4 Steps to Take Following Your Business Sale 

1. Assemble a Team of Advisors 

A well-coordinated team will help you make thoughtful decisions and minimize mistakes. You should include: 

• Tax advisor (CPA): to handle tax implications and minimize your liability
• Financial planner: to build a comprehensive investment plan 
• Estate planning attorney: to protect your assets and manage inheritance 
• M&A attorney: to ensure proper legal closure
  

2. Manage the Tax Liability 

Taxes can be one of your largest sales “expenses.” There are various tax strategies that can be considered, and some need to be implemented prior to the deal closing. 

Prior-to-Sale

• Structure of sale: What can be taxed at Capital Gains vs. Ordinary Income? Does or can your business qualify for state capital gains exclusions? 
• Timing of sale: Consider whether the sale will be structured as a lump sum or an installment sale, and be mindful of the sale date. For example, closing in January can give you up to 16 months before the full tax payment is due, whereas a December sale may leave you with just four months.

Post-Sale 

• Charitable Gifting: Funding a Donor-Advised Fund (DAF) allows you to take a charitable deduction in the year the contribution is made, while retaining flexibility to decide the timing and recipients of the grants at a later date. 
• Earn Interest on Funds Set Aside for Taxes: By working with your CPA, you can identify how much tax is due immediately versus what can be deferred until April 15 of the following year. Consider placing those deferred funds in an interest-bearing account to generate a return before the payment is due.
  

3. Update (or Create) Financial Plan & Implement 

Align Your Wealth with Your Life Goals 

Now that your financial picture has changed, it’s important to ensure your money continues to support what matters most, both now and in the future. Set clear short-, medium-, and long-term goals, whether that’s travel, retirement, philanthropy, legacy planning, or launching a new venture. 

Build a Thoughtful Investment Strategy

Work with your advisor to develop an asset allocation strategy that spreads risk across various investment types. Be sure to account for: 

• Your liquidity needs
• Time horizon
• Risk Tolerance

Don’t Forget the Foundations

Insurance, cash management, and ownership structures (like trusts or entities) also play a critical role in protecting and preserving your wealth. 

Avoid Common Pitfalls After a Sale

Many business owners are accustomed to having their wealth tied up in their company. One of the most common post-sale mistakes is keeping too much in a single asset class or rushing to reinvest without a plan. After a sale, it’s key to: 

• Diversify across asset types and risk profiles 
• Avoid emotional or reactive investment decisions 
• Build a balanced portfolio that reflects your updated goals
  

4. Protect Your Wealth & Your Estate 

Reassess Insurance & Risk Exposure

Following a business sale, your personal balance sheet often grows significantly. Assets that were once protected by business liability insurance and entity structures are now held personally, making you more vulnerable. Review your personal liability coverage and consider increasing or adding an umbrella policy to better protect your assets. 

Review and Update Your Estate Plan

With greater liquidity and potentially a higher net worth, it's critical to revisit your estate plan. Ensure your wills, trusts, powers of attorney, and beneficiary designations are up to date and aligned with your current intentions. Think through whether your children, grandchildren, or others are equipped to manage future inheritances, and how you want that wealth distributed over time. 

Preserve and Transfer Wealth Thoughtfully

Certain estate planning strategies can help reduce estate taxes by shifting future growth outside of your taxable estate. These tools allow you to retain control over how and when your wealth is distributed, while maximizing the amount passed on to future generations. 

Bonus: Take a Brief Pause  

There will be a lot of excitement and emotions after the sale, and likely not a shortage of outside opinions. It’s tempting to rush into new projects or large purchases. Consider taking a short pause for several months. Reflect on what you truly want to do next, whether it's retirement, philanthropy, or starting something new.  

Plan Past the Close with Lutz 

Maximizing the value of a business sale requires more than closing a strong deal; it takes a coordinated plan for what comes next. At Lutz, our M&A and Financial teams work together to support clients through every stage of the transaction, from deal structure to beyond. Contact us to learn how we can help you develop a post-sale wealth strategy that protects your proceeds and supports your future goals. 

• Analytical, Achiever, Context, Competition, Learner

Ryan McGregor

Consulting Director

Ryan McGregor, Consulting Director at Lutz M&A, began his career in 2012. With a diverse background in banking and finance, he has developed extensive expertise in business valuation, mergers and acquisitions, and exit planning. 

Specializing in succession planning and valuations, Ryan focuses on helping clients across various industries including agribusiness, construction, healthcare, and manufacturing. He conducts in-depth market analysis and prepares comprehensive valuation reports for purposes ranging from gift and estate planning to Small Business Administration (SBA) qualified opinions. Ryan values building relationships with clients and finds satisfaction in seeing them successfully transition their businesses through well-crafted succession plans. 

 

At Lutz, Ryan has demonstrated his commitment to professional expertise, earning multiple designations including Certified Exit Planning Advisor (CEPA), Certified Valuation Analyst (CVA), and Certified Mergers & Acquisition Advisor (CM&AA). His analytical approach and drive for continuous learning enable him to provide innovative solutions tailored to each client's unique needs. 

 

Ryan lives in Omaha, NE, with his wife Beth and their three children. He enjoys spending time with his large family and is an avid golfer and sports fan. 

402.778.7946

rmcgregor@lutz.us

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• Maximizer, Analytical, Futuristic, Relator, Strategic

Tom Hodgson, CFP®

Investment Advisor

Tom Hodgson, Investment Advisor, began his career in 2011. He has built extensive expertise in financial planning and wealth management while taking on leadership roles in training and estate planning initiatives. 

Focusing on helping clients achieve their most important goals, Tom creates tailored financial strategies for everything from retirement preparation to education funding. He stays closely connected with clients' changing needs, regularly reviewing their investment portfolios and providing practical guidance. Tom finds fulfillment in helping clients who have worked hard in their businesses or professions feel confident about their financial future, whether they're saving for college, a wedding, or planning for retirement. 

 

Tom lives in Elkhorn, NE, with his wife Carlie, their children Aubrey and Jack, and their dog Oakley. Outside the office, he can be found following the Jays and Huskers, cooking, golfing, and enjoying outdoor activities including hunting and fishing. 

402.827.2059

thodgson@lutz.us

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