Have you ever thought about what you’ll do when you sell your company?
If Google, or Walmart, or Marriot rang you up tomorrow, offering you eight or nine figures to simply walk away, what would you do?
For many entrepreneurs, of course, this day may never come. On the other hand, most of us do dream of the day – perhaps as we near retirement, when we will be able to cash out our sweat equity and step away – with loads of cash…
But what would you do?
There are two schools of thought about this – on the one hand, business owners who’ve sold their companies often feel that, with the additional time they now have, they can manage their assets just as effectively as any team they once employed.
The flip side – and, I feel the more realistic side – is those same men and women now have far more capital in play and subject to taxes than ever before. Age, too, can make a difference in when and where you can put that money to use or into shelters. Simply put, if you sold your chain of restaurants for millions, you still might not be the best steward for managing your money.
As a tax professional, I can rarely concede a time when an entrepreneur who has successfully sold their own business should take over the role of actively managing their assets in lieu of a professional team of tax experts and investment strategists.
My point here is simple – as an entrepreneur, you’ve likely spent years of long days and long weeks, and when you suddenly step away from that after selling your business, there’s a steep learning curve of “what now?” I’ve seen clients take several years to learn how to redirect that energy into other pursuits more aligned with our ideas of “retirement.”
Have you even made the time to think – really think – about that yet?
So this week, especially as we move closer to a new year and the focus subtly shifts this month from business to the holidays, I want you to think about what your long-term plan should be. More importantly, I don’t want you to think about how you’ll leave one business to simply go and manage your finances as a replacement for the company you sold.
Please, get clear on your retirement goals and how you can grow into those goals. This isn’t about money; it’s about being ready for a whole new chapter of life – which is, of course, what retirement should be.
I’d love for you to share what you learn and decide, and just as importantly, don’t hesitate to reach out and schedule a call if selling your company is your horizon. The more time we have to prepare, the better opportunity we have to mitigate any corporative matter on contracts, administration, and taxes from such a sale.
If you have a problem with your taxes, make your appointment here