So, you’re looking to sell your business – but what next?
You’ve spent years building a successful business and now you’ve decided to sell. Soon you will be counting your millions, but what do you do next?
Many entrepreneurs and business owners have acquired the skills and expertise to run their companies profitably; but they feel less sure when it comes to planning for their future and how to best manage a large pot of money.
So, you’re looking to sell your business – but what next?
You’ve spent years building a successful business and now you’ve decided to sell. Soon you will be counting your millions, but what do you do next?
Many entrepreneurs and business owners have acquired the skills and expertise to run their companies profitably; but they feel less sure when it comes to planning for their future and how to best manage a large pot of money.
The key is not to rush. Contrary to popular opinion, you will not miss the ‘next big opportunity’ by delaying investing. Missing a small amount of investment growth is nothing compared to making huge mistakes with long-term ramifications, by not taking adequate time to explore your options.
Now is a time to take stock and think about your life and gain a new sense of purpose, possibly replacing the missing focus that was previously your business. Once you have done this, relevant financial decisions can be made, that target these new life goals.
One area that is often overlooked is that of tax. Shares in owner managed businesses are often free of Inheritance Tax (IHT) as they fall under the Business Property Relief (BPR) regime. However, on the sale of a business the full value of the proceeds will fall into your estate for IHT purposes.
In addition, you are now responsible for generating your own income from the proceeds, or your pension fund if you have one. With cash rates at rock bottom, this is not as simple as it seems. Especially when considering that you are battling against the twin risks of inflation and longevity.
Inflation risk is that prices will rise quicker than your portfolio grows, eroding the buying power of your capital. With everyone living longer, this brings the very real possibility that without careful planning you will outlive your portfolio.
Therefore, design and ongoing management of a robust and suitable investment portfolio is a must. At OCM Wealth Management, we specialise in working with you to create an investment strategy which is underpinned by your comprehensive financial plan that addresses tax, risk management and is focused on what outcome you need to achieve from your portfolio to enable you to do what you want with the rest of your life.
When structuring your financial affairs you should seek independent legal and financial planning advice. If you would like to discuss your options in more detail, contact OCM Wealth Management on 01604 621 467.