MANY BUSINESS OWNERS LIVE FOR THE DAY THAT THEY CAN FINALLY SELL THEIR BUSINESS OR PASS IT ON TO THE APPROPRIATE HEIR, AND WHEN THEY DO IT OFTEN COMES WITH A SIGH OF RELIEF.
Though this often marks as a time to celebrate, it is also a time to take a step back and recognize that you’re not quite off the hook. Post sale is where many owners go awry, which can make the sweetest season of life a stressful and trying time. Owners often dream of the day that they can relax, spend time with their family, and enjoy the little things in life, however it is quite typical in this post sale time for owners to blow through their money, lose it, transition poorly, or create inner family feuding.
Transitioning from a business should open up a world of opportunity, where you can devote your time to philanthropy, community volunteering, and church events, instead of a time of strife. The unfortunate fact is that many owners will find themselves in a very different place after exiting a company than where they originally imagined. As a result, it is vital that owners envision their post-business life long before the sale is final.
Never presume that because you could run the company well, you can also run the capital well. Once a sale goes through, owners should take measures immediately to diversify their holdings in order to lower risk. The best way to address redeployment of assets is through a comprehensive wealth management plan that determines how much income is needed to keep pace with inflation and provides the owner with the lifestyle he desires. Remember that wealth is a burden as well as a blessing to you and your family. As Jackie Joyner once said, “It’s better to look ahead and prepare, than to look back and regret.”