I Have Just Sold My Business, Now What Do I Do?

Navigating the Next Chapter After a Successful Business Sale

Congratulations! You've successfully sold your business, a venture that you've poured your time, energy, and passion into. While this marks the end of one journey, it's also the beginning of a new chapter in your life. Now, you're faced with the exciting opportunity to explore new horizons, secure your wealth, and plan for the financial well-being of future generations. In this article, we'll guide you through the essential steps to take after selling your business, ensuring a prosperous and fulfilling life post-sale.

Personal Life: Finding Balance and Purpose

The first order of business after a sale is to take a moment to reflect on your personal life. Many business owners find that their identity is closely tied to their company, and it's crucial to redefine your sense of purpose. Start by reconnecting with hobbies, interests, and passions that may have taken a backseat during your entrepreneurial journey. Consider taking a well-deserved break or embarking on new adventures to rejuvenate your spirit.

Looking After Family: A Legacy of Security

Selling your business often translates into newfound financial security for your family. However, it's essential to have open and honest conversations with your loved ones about the impact of the sale on your family's dynamics, financial goals, and lifestyle. Create a comprehensive plan that addresses your family's needs, from education and healthcare to estate planning and wealth transfer.

Securing Wealth for Future Generations: Estate Planning

One of the most critical aspects of post-sale planning is estate planning. Consult with a qualified estate planning attorney to ensure your assets are protected and efficiently transferred to the next generation. You can establish trusts, create a will, and take advantage of tax-efficient strategies to leave a lasting legacy for your family.

Investment Structures: Maximizing Returns

With a significant influx of capital from the sale, it's essential to determine the right investment structures to grow your wealth. Consider diversifying your investments across various asset classes, including stocks, bonds, real estate, and alternative investments. Depending on your risk tolerance and financial goals, explore options such as individual stocks, mutual funds, or private equity investments. Explore with your financial advisor team what structures work best for you based on your individual circumstances and goals.

Some common investment structures in Australia include:

• Self-managed superannuation funds (SMSFs)

• Managed funds

• Annuities

• Trusts

• Life insurance

Advisers You Need: Assembling Your Financial Dream Team

No one can navigate the complex world of finance and investments alone. Assemble a team of trusted advisors who can guide you through this new financial landscape. This team may include a financial planner, investment advisor, tax consultant, and estate planning attorney. Each professional plays a critical role in helping you make informed decisions and protect your wealth.

These may include:

• Financial advisor

• Estate planning attorney

• Tax advisor

• Insurance agent

• Investment banker

Investment Strategies: Protecting and Growing Your Wealth

When it comes to investing your newfound wealth, it's essential to strike a balance between protecting your assets and achieving growth. Diversification, risk management, and a long-term perspective are key principles to follow. Consider your financial goals, risk tolerance, and time horizon when developing an investment strategy. Regularly review and adjust your portfolio to ensure it aligns with your objectives.

Some factors to consider include:

• Your risk tolerance

• Your time horizon

• Your investment goals

Other Considerations

While we've covered the primary aspects of post-sale planning, there are other factors to consider. These may include:

• Charitable Giving: If philanthropy is a passion, consider establishing a charitable foundation or donor-advised fund to give back to causes that matter to you.

• Healthcare Planning: Ensure you have adequate healthcare coverage and long-term care insurance in place to protect your well-being and retirement plans.

• Lifestyle Adjustments: With a significant financial windfall, you may want to reassess your lifestyle and spending habits to align with your new financial situation.

• Entrepreneurial Ventures: Some business owners can't resist the lure of entrepreneurship. If this is you, explore new business opportunities or invest in startups that align with your interests.

• Family Office: If your liquidity event sees you receive a very large settlement greater than AUD $50million, it may be worth speaking with you financial advisory team about establishing a family office to protect and ensure your families financial legacy.

In conclusion, selling your business is a monumental achievement that opens the door to new opportunities and challenges. By focusing on your personal well-being, family's financial security, and strategic financial planning, you can navigate the transition successfully. Surround yourself with a knowledgeable and trustworthy team of advisors who can help you make informed decisions and seize the opportunities that lie ahead. Remember, this is not just the end of one chapter; it's the beginning of an exciting new adventure. Embrace it with enthusiasm and confidence.

Until next time.

Murdoch Gatti

Private Wealth Manager | MComm Fin

IMPORTANT DISCLAIMER

Murdoch Gatti at York Wealth Management Pty Ltd ABN 46 605 610 679 is an Corporate Authorised Representative of Samuel Allgate Investments Pty Ltd AFSL No. 420170; Financial Adviser Authorised Representative Number 001007979.

This article has been prepared without taking into consideration any investor’s financial situations, objectives or needs. Accordingly, before acting on the advice in this article, you should consider its appropriateness to your financial situation, objectives and needs. Every reasonable effort has been made to ensure the information provided is correct, but we cannot make any representation nor warranty as to the accuracy, completeness or currency of that information. To the extent permissible by law, no responsibility for any errors or misstatements is taken, negligent or otherwise. SAI or its authorised representatives may also receive fees or brokerage from dealing in financial products, see the Financial Services Guide for information about the services offered available at York Wealth Management.