Interested in selling your business? The sale of a company you built from scratch is a major life change. It can either lay the foundation for your next endeavor or be the vehicle that transitions you to retirement to enjoy the fruits of their labor. Always check with a Certified Business Exit Planner to be sure you have enhanced the value in your business in order to get top dollar, and then before you sell, be sure you have the answer to the questions below before the ink is dry:
- Do you have a plan for where, when and how to invest money from the sale to maximize its benefits and transfer that wealth tax efficiently?
- Are you educated about investment vehicles like 1031 Exchanges or Opportunity Zone funds that may enable you to reduce and defer tax liabilities?
- Was your wealth tied directly to the profitability of your business? With this asset no longer in play, have you explored other sources of income?
- Have you made a budget or created a plan to cover living expenses without the income from the business?
- Can you count on stocks, bonds, annuities, Social Security benefits, real estate investments? Are these optimized?
- Is there a long-term plan in place to ensure the money from the sale will last a lifetime? Did you know “the gap” can hurt you? For example, if you sell you biz for $5M but need $7.5M to retire comfortably through the end of your days, how will you make up that shortfall? To cover “the gap” your assets must be wisely invested for growth and income to cover your living expenses until the end of your life, and then pass tax-efficiently to your heirs.
Reach Out To Us: The success of the sale of a business depends on the enhancement of its value, so that it fetches top dollar. Be sure you tap into the experience of the Certified Business Exit Planning professionals on our TFG team for assistance before you attempt to sell. TFG Financial Advisors can assist you with the personal financial planning services necessary to ensure the wealth from your business is transferred tax efficiently to you and your family, and provides the funds necessary for your lifestyle to continue in your retirement years.
Still have questions? Feel free to contact me, Cory Lyon, directly at 561-209-1120, regarding customized financial investment strategies if you are considering selling your business. The sale of your entity is about more than business valuations, deal structures and potential tax consequences. Our goal is to assist you in making informed investment decisions, and I act as a fiduciary for all my clients.
TFG Financial Advisors, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
