This is the final part of a three-part series on how wealth managers can help you before, during and after the sale of a business. Read Part 2 here.
Life after the sale: Move on with purpose
Assuming you’re not staying on to help run the business for the new owner, you can now do the things you’ve wanted to do if only you weren’t so busy at work.
Spend more time with family, travel, volunteer, mentor, even start a new enterprise – the sale provides the time and means to do many things. But administering this converted wealth also needs to be a top priority.
Some key elements of the after-sale process:
Adapt to your new identity: You’re no longer the boss so many people will see you differently and this may take some getting used to. While there’s no one-size-fits-all advice on how to expedite this adjustment, focusing on the exciting possibilities ahead may help.
Manage the sale proceeds: Before the sale, you set up structures to receive the wealth from the sale. Now that you have those dollars, how should you invest them to fund your specific goals. Working with a professional manager can help you achieve post-sale tax efficiency and adhere to your pre-sale plans.
Educate the extended family: The saying “rags to rags in three generations” illustrates the vital role that financial education can play in maintaining wealth over time. Younger family members will eventually inherit this wealth – ensure they are prepared to be responsible stewards so generations to come will also benefit from your legacy.
Altair in Action
Facilitating a Second Act
“After selling his company, a client stayed on to work for the new owner but he didn’t like the arrangement and, after a while, decided to leave.
We talked through some options for what he should do next. He still had plenty of drive and wanted to work, so the focus was on finding the right opportunity.
We introduced him to a contact in the private-equity space, which led to an executive role at a PE-backed company. His experience gave him valuable knowledge that he shared to help them build out their business strategy.
Several productive years later, it was retirement time. Our client had acquired an equity stake in the company that provided him with a second profitable exit.
It is not unusual for someone to sell their business before they are ready to call it a career: age, self-identity, outside interests and more go into that decision. Our client wanted to keep working, so Altair’s role was to help him identify a rewarding next move and then leverage our resources to help facilitate that transition.” – Rachael Halstuk Mangoubi, Managing Director
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The material shown is for informational purposes only and should not be construed as accounting, legal, or tax advice. Although we made efforts to verify the accuracy of the information, Altair Advisers cannot guarantee its accuracy. Please see Altair Advisers’ Form ADV Part 2A and Form CRS at https://altairadvisers.com/disclosures/ for additional information about Altair Advisers’ business practices and conflicts identified.