Business owners: Engines of wealth creation

Start before a transaction is on the table. More time gives you greater flexibility to strengthen the business, prepare successors and coordinate your personal, estate and tax planning with experienced professionals. While it’s never too early to start planning, it can be too late. A thoughtful plan can help maximize the value and terms of a sale – and what you ultimately keep – while helping you achieve your goals for yourself, your family and the causes you care about.

A business transition is about much more than finances. It can affect your family, legacy, employees, control and personal financial independence. Working with your team of advisors, consider what matters most to you and how each path could affect you, your family and your business for generations to come. 

Not every business owner needs a formal valuation, as they could be costly and is often prepared for specific tax or legal purposes. An indicative or informal valuation may be a more practical starting point and can help you understand your options, prepare for a potential sale and inform your broader wealth planning. Depending on your circumstances, valuation specialists, investment bankers, and other experienced professionals can help provide perspective on value. 

The headline value of a sale matters, but so does how much of it you ultimately keep. Thoughtful pre-sale planning may help reduce taxes and increase what is available to you, your family and the causes you care about. Timing and deal structure matter. Explore gifting, trust, charitable and other planning strategies with your financial, tax, legal and investment banking advisors well before a transaction advances. Some opportunities can become more limited once a deal reaches later stages.

Selling a business can fundamentally change your financial life from business owner to investor. A concentrated business asset may suddenly become significant personal liquidity, creating a new set of decisions about what that wealth needs to accomplish. Before investing, consider what the proceeds need to provide – from near-term liquidity and long-term growth to family goals, philanthropy and legacy. Your UBS Financial Advisor can then help build an investment strategy around those priorities.