How I Help People Who Are Selling Their Business
Selling a business is a time of transition. There are many things to consider. It can be a very emotional journey. The culmination of years of hard work being handed over someone else.
The particulars of the deal may vary but ultimately the result is the same. The business owner will have divested themselves from their business. In exchange, they will have received a sum of money. The reason for selling the business will dictate what they intend to do with the money.
Life After Selling A Business
After so many years of concentrating on building their business, entrepreneurs often find it difficult to direct their attention elsewhere. Developing a purpose outside of their business.
Finance impacts almost every aspect of our lives. From the moment we are born to the time of our death, there is usually a financial element. As money has such an effect on our lives, making sure it is being used to achieve what is important to us is essential.
When I meet with clients, we spend much of our time talking about what is important to them and why. Listening carefully to their answers and getting to the root of these questions enables us to work together more effectively. Consequently, the programmes I put in place for my clients are uniquely tailored to their very personal aspirations. This leads to better outcomes for them.
When Selling is Not Part of the Plan
Of course, not all business sales are voluntary or planned. Sometimes, the owner is unable to continue to run the business due to ill health or for economic reasons. In these circumstances, the seller is often in a weaker negotiating position. With the arrival of the COVID pandemic, the number of this type of sale has risen.
Even in this situation, planning the closure of the business needs to be built around the needs of the owner. If they are selling due to economic reasons, could the business database be useful to a potential future employer of the business owner? Would a merger with another company be strategically beneficial? If the owner is suffering from ill-health, could a manager be brought in to run the business until the owner recovers?
Exploring different possibilities with an independent objective adviser can be a useful exercise. Even if it is just to bounce ideas around to see if there are any aspects which the owner had not considered. For example, tax may not be a big consideration in the UAE but if the sale occurs over a period of time when the owner is not resident here, this may result in an unexpected liability.
With the arrival of a significant amount of capital, estate planning should also be considered. Estate planning is the management of the transfer of wealth from one generation to the next. Reviewing the owner’s Will is the starting point.