What’s Next After Selling your Business?

It can be a significant shift in your personal and professional life when you sell your company and move onto a new phase.

You might be exhausted or simply leaving room to decide what happens next. Meaning that it can be hard to figure out exactly how to structure your days after you’ve sold your business. You probably spent years building your company, and then even more time finding the right buyer to take over your company. Research published by Coutts Bank found that about one-quarter of owners who sell their company have no idea what they plan to do after the sale.

And 40% of those same people regret that they did not have a more robust plan in place. A couple of key tips can help you to get the most out of putting your business up for sale and understanding how this transition period presents new opportunities and challenges in your life. You’ll need to start by protecting the profits from your transaction, from tax consequences as well as market risks.

This is a leading reason to warp directly with a financial professional who is familiar with some of these challenges. At this point, it is often also recommended that you build a diverse portfolio that combines multiple vehicles such as bonds, stocks, real estate, money market accounts, and mutual funds. Your tax obligations should also be revisited during this phase in your life. This is a great opportunity to work directly with a tax professional to understand any tax implications before the business is formally sold.

Typically, the IRS will consider the sale of every individual asset associated with the company rather than the sale of the company as a whole. Having good financial guidance prior to and during the sale can help you minimize potential tax consequences.

One other major aspect associated with adjusting your life is preparing for emotional transition. It is very common, even for those company owners who are sure it is the right time to sell, to experience a sense of emotional loss after selling their company that they operated and owned for years.

Understanding these psychological impacts can help you prepare for the significant change as well as cope with these feelings in a productive and healthy way as you take up new interests and spend time with friends and adjust to your new life. Focusing on personal fulfillment can help dramatically in this process. Schedule a time to meet with a dedicated financial professional to learn more about these strategies and how best to accomplish your goals.

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