Business owners · Practical guidance
After selling your business: what should you ask before reinvesting?
Selling a business changes your working life and your financial needs. Before comparing investments, list what the proceeds need to pay for and what you still need to clarify.
Martins Patrimoine · Updated on
1. Distinguish the advertised price from available resources
Prepare the items to be discussed with the following professionals: payment schedule, commitments still in progress, costs and tax consequences to be determined. The advertised price alone is not enough to describe the resources that you will be able to commit to new projects.
This step does not allow the calculation of a "net available" amount. It allows the separation of known elements, estimates to be verified and information still missing.
- Schedule of payments
- The outstanding commitments
- Questions for the advisers handling the sale
2. Describe your life after business
Your needs may change: a new activity, more free time, a real estate purchase, income to organize or a wealth transfer to prepare. Enter your projects in time before combining solutions with them.
A horizon is not only a time frame, but also whether the date is firm or flexible, whether the need can be deferred and what resources already exist to meet it.
- My immediate plans
- The income I want to organize
- Future family and professional projects
3. Reread the already constituted wealth
The cash flow resulting from the transaction adds to an existing situation. Real property, contracts, participations and debts can continue to weigh in decisions, so a new allocation does not reflect independently of these elements.
Also identify the people to be involved in the exchanges: family, accountant, notary and other advice according to the file. The aim is to avoid that several coherent decisions separately contradict each other when combined.
- My existing assets and debts
- Decisions already taken
- Contacts to be co-ordinated
4. Prepare a discussion, not a standard allocation
This grid does not offer a percentage to invest, nor is it expected to yield, nor does it provide a tax package. These decisions require a review of your situation and, depending on the subject, an analysis by the relevant professionals.
The leadership path identifies the links between business and personal wealth. The first exchange with Gary is used to identify priority issues and the next stage of work.
Sources and scope
This sheet helps to prepare a discussion. It is neither an analysis of your situation nor a recommendation for investment.