- The sale of a business can be a profound change, with powerful emotional impacts, such as feelings of tension and uncertainty.
- Business owners should prepare for their exit by planning ahead, defining what they want and communicating early.
- Read the latest issue of Business owner insights to learn more about how business owners can plan for life after the sale of their business.
Where you are today as a business owner is the result of your passion for the business you’ve built—and a lifetime of work. But what is your vision for life after you walk away from your business? What you do next is critical for you and your family. It’s a time when you need to shift your focus to personal fulfillment, wealth planning and more.
You. Your family. Your employees.
Your business goes to the heart of who you are and what you do. Even for family members, your decision to sell your business represents a significant change in wealth and status. Communicating with those who could benefit the most may be important to a successful plan. Many owners assure employees that a sale will have no practical impact on them. However, once the sale has gone through and you are no longer involved in the decisions, it can be hard to know. This all may lead to tension and uncertainty, which can have an emotional impact on you.
"It’s sad and hard when you sell because you’ve not only invested time and money, but also a bit of your soul."
"A part of me was delighted but another part of me was sad. The office was like a second home."
Prepare for your exit
According to the UBS Investor Watch "Who's the boss?", 48% of business owners don’t have a formal exit strategy in place. So here are three key tips for getting started:
- Plan ahead: Long-term planning is key to any successful sale, because it helps you focus on what’s important. Start the conversations early with your financial advisor, tax professional and estate planning attorney—and be certain that advanced income, legacy and tax planning are a part of these conversations. Doing so will help you be confident about your future.
- Define what you want: Spend time thinking about what you want after the sale. Reflect on your passions and plan for what you want to accomplish. UBS research has found that 48% of business owners look forward to traveling more, while 26% plan to give back to their community or causes.1
- Break the silence: UBS research also shows that only about 25% of former business owners engaged their children and heirs in a conversation about family wealth. 1 Communicate early about what you expect or hope for. This creates a clearer picture and gives everyone involved a chance to contribute.
Whether your transition is a few months or a few years away, it’s important to start planning now for how you want to live your life after selling your business. A UBS Financial Advisor can help.