Selling a Business is Just the Beginning: Navigating Wealth, Purpose, and Legacy

Liz Jackson MBE, Director, Initium Corporate Finance

For many entrepreneurs, the sale of a business is the culmination of years of hard work, late nights, and strategic decision-making. Yet, in reality, selling a business is just the start of a new journey – one that involves preparing for a significant life transition and ensuring that the wealth from the sale is managed wisely.

The Importance of Preparing Early

Successful entrepreneurs know the sale of a business is not something to rush. Several years before a deal is finalised, business owners should begin preparing. This means maximising personal pensions, engaging tax advisors, and ensuring that every financial detail is carefully planned. After all, once that sale happens, you’re faced with managing potentially life-changing sums of money – something that requires expert guidance and planning.

What Does Life Post-Sale Look Like?

One of the most important questions entrepreneurs need to ask themselves is: “How much is enough?” For some, life post-sale may involve pursuing personal passions like rewilding land or investing in social causes. For others, it may mean contributing to their children or grandchildren’s education or supporting a cherished cause. The key is ensuring the wealth earned from the sale aligns with future goals and aspirations.

Protecting Wealth and Liquidity

Many business owners don’t realise that after a sale, there are critical liquidity risks to manage. With the government’s Financial Services Compensation Scheme (FSCS) only guaranteeing up to £85,000, it’s essential to spread the wealth across multiple accounts to ensure it’s fully protected. Having the right financial advisor is crucial to safeguarding assets and ensuring the liquidity is maximised for long-term stability.

Finding a New Identity

For some, selling their business may lead to a loss of identity. It’s easy to feel untethered when the business you’ve built is no longer part of your daily life. That’s why joining networks like the Fellows group can offer a sense of community and shared experience. Much like a parents’ group, like the NCT, this community helps entrepreneurs navigate the emotional and financial transition that follows the sale of a business.

Beyond the Sale: Creating an Impact

Today’s entrepreneurs are not content with simply walking away from their businesses – they want to leave a lasting impact. Many are turning to ethical investments and green banking, ensuring their wealth contributes positively to society. For these entrepreneurs, the sale of a business is a chance to build a legacy that goes far beyond profit.

Selling a business is a significant milestone, but it’s just the beginning of a new chapter. Entrepreneurs must be prepared not only for the financial transition but also for the personal one. With the right planning, guidance, and purpose, the sale of a business can be the gateway to an even more fulfilling and impactful life.

spot_img
Ad Slider
Ad 1
Ad 2
Ad 3
Ad 4
Ad 5

Subscribe to our Newsletter