LUTZ BUSINESS INSIGHTS
selling your business? you need a post-sale financial plan
bill kenedy, LUTZ consulting and m&a shareholder
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!
ABOUT THE AUTHOR
BILL KENEDY + LUTZ CONSULTING AND M&A SHAREHOLDER
Bill Kenedy is a Lutz Consulting and M&A Shareholder at Lutz. He specializes in business valuation, litigation support, and merger and acquisition advisory services.
AREAS OF FOCUS
AFFILIATIONS AND CREDENTIALS
- American Institute of Certified Public Accountants, Member
- Nebraska Society of Certified Public Accountants, Member
- Certified Public Accountant
- Accredited in Business Valuation
- Certified in Financial Forensic
- Certified Exit Planning Advisor
- BSBA in Accounting, St. John’s University, Collegeville, MN
- Construction Financial Management Association, Past Treasurer, Board Member
- A Time to Heal (non-profit focused on cancer patients), Past Board Member
- Understanding the Tax Implications of a Business Sale
- The M&A Client Experience
- Lutz M&A Advises Midwest Scaffold Service on its Sale to Sunbelt Rentals
- 5 Key Purchase Agreement Considerations
- Net Working Capital: What is it and How is it Used?
- Issues During the Due Diligence Process in M&A Transactions
- Lutz M&A Advises Fantasy's, Inc. on its Acquisition by Casey's General Stores
- Primary Benefits of Selling Your Company to an ESOP
- Is An Employee Stock Option Plan Right for Your Business?
- Lutz M&A Advises C&W Transportation on its Sale to Platform Capital
- Our Services, Our People, and Our Results
- Lutz M&A Advises Hands of Heartland on its Recent Investment by Evolve Capital
- Lutz M&A Advises Labor Source on its Recapitalization by Great Range Capital
- Overcoming Obstacles in Business Transition Planning
- Understanding Net Working Capital in Business Transactions
- How to Increase the Value of Your Business
- When is the Right Time to Exit My Business?
- Lutz M&A Advises Triage Staffing on Recapitalization
- Lutz M&A Advises Hockenbergs on Recent Sale to Trimark USA LLC
- Lutz M&A Advises Focus Respiratory on its Recent Buyout by Valley Healthcare Group
- Is Your Small Business at Risk of Fraud?
- Lutz M&A Advises CCW, LLC on its Recent Buyout
- Lutz M&A Advises NIFCO Mechanical Systems on Recent Sale
- Lutz M&A Advises Midwest Door & Hardware on Recent Sale
- Why is Forensic Accounting Needed?
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