Selling your business can be a lengthy and time-consuming process that can take most of your focus away from other things. However, setting your sights on a successful sale isn’t the only part of the process you should be concerned with. One thing most business owners don’t realize is that the transaction process isn’t finished after the sale of the company. As a business owner, you need to make sure you have a post-sale financial plan and life plan set in place to ensure you are satisfied after the transaction is complete.

What will you do after you sell your business?

Based on a recent survey, a year after selling their business over 75% of owners  “profoundly regretted” the decision to sell. The primary reason for this was the fact that business owners had not thought through how they would spend their time after they sold their company. The plan of golfing every day unfortunately doesn’t always work out! Business owners should spend time developing a post-sale plan to keep busy in one way or another. 

Have you organized a post-sale financial plan?

Another reason business owners regretted selling their business was because of poor financial planning. It seems elementary that a business owner would work on an in-depth financial plan before selling their business, but too often, this does not occur.

It is my opinion that no business owner should sell their business without having a qualified expert (CFP) to help them with a comprehensive financial plan. Start by asking yourself:

• How much do I really need to retire?
• How should I invest the proceeds from the business sale?
• Do I have enough to use some of the funds to support a charity?

These are only a few of the questions you should be looking at in regards to your post-sale financial plan. Discussing these matters with your Financial and M&A advisor can help you get a clearer picture of where you’re headed.

In short, thinking about your personal balance sheet and putting a plan in place before you sell your business is the best way to ensure you are prepared. If you are considering a sale, we can help you put the pieces together to create the plan you need. Contact us today to get started!