Planning for Life After the Sale: Post-Sale Considerations

Selling your business isn’t the end of a journey; it’s the beginning of a new chapter. What are your plans after the sale is complete? There’s more to do than just ride off into the sunset. Here are some tips for planning for life after the sale.

Financial Planning Tips After You Sell Your Business

After selling your business, you could be looking at a fairly significant windfall. Hopefully, you prepared for this eventuality during the business valuation process. Now that you have the cash in hand, you can prepare for the future by:

• Enlisting professional help to take advantage of tax deductions.
• Partnering with a financial advisor to discuss your financial goals.
• Revisiting your will and estate plans.
• Re-evaluating your personal budget or paying off debt.
• Ensuring that your health insurance needs are met.
• Making decisions about future investments.

Don’t wait until after the sale to dream about your future. Start by getting a clear idea of how much your business is worth. The Sunbelt business valuation calculator can help you assess your company and jumpstart your thoughts about life after selling your business.

Lifestyle Changes After Selling Your Business

The Harvard Business Review reported that many business leaders struggle to find “purpose” after leaving their companies behind. That’s why it’s important to make decisions about lifestyle changes after selling your business.

For instance, do you intend to re-enter the workforce? Start a new business? Alternatively, are you hoping to enjoy your retirement years and spend more time with your family? Making definitive plans can help you set long-term goals that keep you focused and motivated even when you don’t have a company to run.

If you’re retiring, it may also be time to make decisions about your physical health. That means ensuring that you have healthcare coverage for you and your family. But it can also mean taking time to exercise and relax so that your retirement years are as long and full as possible.

Philanthropy

When selling your business, you might want to consider the kind of legacy you leave behind. You can do so through charitable giving. Not only will doing so make an impact on a charitable cause, but it will also offer you the benefits of tax breaks for charitable giving.

If there’s a cause that’s near and dear to you, you might simply give a portion of your business profits directly to a local organization. However, you can also set up your own organization to direct your philanthropic efforts, such as a private foundation or donor-advised fund.

Next Business Ventures and Investments

Selling your business doesn’t always mean a transition to retirement. You may have aspirations of starting another business or perhaps giving guidance to another entrepreneur.

Don’t just jump back in. Give yourself time to plan for your next step and decide whether a new business venture aligns with your short- and long-term goals. Now would be a good time to discuss the issue with your family so that everyone is on board for your future.

Additionally, you can always grow your wealth by sinking your money into an investment. You can invest in the stock market, or you can use a portion of your money to serve as an angel investor for another rising business leader.

Start Your Journey

Partnering with a business broker can make it easier to sell your business. Sunbelt Business Brokers provides expert guidance as you walk through the process and can ensure that you get a fair price for your small or medium-sized business. Contact a broker today to get started.