Sell. Selling. Sold!
A three-part series on business transition from Ovisto™ Wealth Management
Congratulations, you’ve done it! You’ve sold your business!
But now what?
With the proceeds from the sale, the possibilities can feel endless. However, navigating this new territory requires careful planning, strategic decision-making, and proactive execution and management. Let’s explore some key considerations to help you make the most of this life-changing event.
Financial Goals and Planning
First and foremost, it’s essential to establish clear financial goals. Consider factors such as inheritance planning, estate planning, and your long-term retirement aspirations. Consulting with a financial advisor is incredibly important because it can provide invaluable guidance in developing a comprehensive plan that aligns with your unique circumstances.
Here are some questions an advisor will ask you to consider:
- What are your long-term financial goals?
- How do you envision your retirement lifestyle?
- Are there any specific charitable causes you’d like to support?
- Are you interested in starting another business or investing in other ventures?
- How important is risk management and asset protection to you?
This is a time for some deep reflection and a perfect time to reevaluate your financial plan to determine if it still measures up. If you’re unsure about your current financial plan or would like to explore additional options, seeking a second opinion from another advisor can provide valuable insights.
Asset Protection Strategies
Working to preserve your wealth from potential threats such as creditors, scams, and unexpected tax liabilities is essential. Consider asset protection strategies like trusts, limited liability companies, and insurance policies.
Allocation Strategy
How will you allocate your newfound wealth? A well-thought-out allocation strategy is an important part of making your money work efficiently and effectively. Consider factors such as risk tolerance, investment horizon, and specific financial goals.
Tax Planning
Tax optimization is a critical aspect of post-sale planning. Working with a tax professional can help identify tax-efficient strategies with the goal of minimizing your tax burden and maximizing your after-tax returns. Timing your sale, utilizing tax-advantaged accounts, and exploring potential tax deductions are just a few strategies to consider.
Selecting the Right Advisor
Choosing the right financial advisor is paramount. Look for someone with knowledge in post-sale planning who can provide personalized guidance and support throughout your financial journey.
Retirement Planning
If retirement is your goal, now is the time to start planning. Consider factors such as your desired lifestyle, healthcare costs, and potential longevity. A comprehensive strategy will help you plan for a comfortable and meaningful retirement.
Once you have a solid financial plan in place, it’s time to decide what comes next. Whether you’re looking to relax and enjoy retirement or embark on new entrepreneurial ventures, having a clear vision will help you make informed decisions.
Selling your business is a significant milestone. With careful planning and making informed decisions, your lifetime of hard work can segue into a meaningful retirement.
Uncertain about what to do next? We are here to help. Contact us today, and we can provide insights (or a second opinion) to help you and your family plan for the future.