The pandemic has helped lots of younger investors get started, but they should look beyond DIY options to see the really transformative changes early – and proper - wealth management can make.
Business people may only think of professional wealth management after they have sold a business, but there is great value in engaging a provider before a sale takes place. Here, we explain some of the ways wealth managers help entrepreneurs.
Selling a business represents a step-change in the life of an entrepreneur. It will likely represent the culmination of many years of work, but as well as being a time to reap the rewards of all that dedication, it can also be quite a fraught period. It is a change of lifestyle for many people, as well as a change in financial circumstances.
Although wealth management may not be front of mind pre-sale, it really should be. Wealth managers are adept at helping business people gear up for sale and can provide invaluable expertise to maximise the value of a deal, as well as effectively structuring and managing the proceeds afterwards.
Wealth managers are adept at helping business people gear up for sale and can provide invaluable expertise to maximise the value of a deal, as well as effectively structuring and managing the proceeds afterwards
A business sale can be a complex process, and there is only one shot at success. Having a team of trusted advisers to help manage the situation, as well as the money, will be a very clever move.
If you are near selling your business, you’d be forgiven for not wanting to engage with yet another party. But be in no doubt, having a wealth manager in your corner will both lighten the load and deliver value in a number of ways.
Here are some of the ways wealth managers can help entrepreneurs owners prepare for a sale, in both a professional and business sense.
Preparing a business for a sale and negotiating with acquirers can be an all-consuming process. Having professional advisers on hand will prevent you becoming bogged down in the detail – and getting stressed
Wealth managers have seen business sales from every conceivable angle, and will be able to help you understand all your options so you make the right choices. Timeframes and sequencing are incredibly important and professional advisers will quickly spot if something is amiss.
Preparing a business for a sale and negotiating with acquirers can be an all-consuming process. Having professional advisers on hand will prevent you becoming bogged down in the detail – and getting stressed.
Business exits commonly turn out very differently to how they were originally proposed. Having an expert in your corner will ensure that your vision remains uncompromised while also extracting maximum value from any deal. An objective voice will really help you with balancing clarity and adaptability; the collective experience of your wealth management provider really does grant the gift of foresight.
Business people often enter our matching process to invest the proceeds of a sale. But while wealth managers will of course welcome those who have already experienced a liquidity event, I often wonder if their situation could have been even better if the professionals were involved at an earlier stage. Why not speak to a few wealth managers to see where their expertise and experience align with your situation?
There are numerous ways a wealth manager can help you wring the very most from a deal, and from the wealth that results. However, many of these need to be thought about ahead of time to be fully effective. Engaging with advisers early on in the process is ideal, but it’s never too late to take action either. You may still be able to mitigate tax very powerfully, for instance.
The human element of a business sale needs to be planned for too. You may need to stay with the business for a period, or you could exit fully far more quickly than you imagined and feel suddenly bereft. Wealth managers have seen all the potential pitfalls play out, and will be able to help you navigate them successfully.
A sale might be life-changing in terms of the liquid wealth you now own personally, and this will likely call for a complete revision of your wealth strategy and asset allocation. This is likely to mean alterations to everything from life insurance to estate planning, and possibly “softer” elements like coaching children for inheritance. Wealth managers really do take care of everything in the round.
There are numerous ways a wealth manager can help you wring the very most from a deal, and from the wealth that results
Wealth management professionals are entrepreneurial by nature and understand that business ownership is a journey. It is their combination of emotional intelligence and technical expertise that really provides a boost to someone thinking of selling their business.
Wealth management professionals are entrepreneurial by nature and understand that business ownership is a journey
By choosing the right wealth management institution you really could get a one-stop-shop solution to see you through a sale, and hopefully for years after as you enjoy your new-found wealth.
Shrewd business people know that correct execution is all. When the stakes are this high, you need truly expert – and truly trusted – advisers fighting your corner. Whatever your situation, there is sure to be a wealth manager on our panel that perfectly suits your needs, so why not take advantage of some no-obligation discussions to see for yourself the value a wealth manager can add?
The investment strategy and/or financial planning content of this piece is for informational purposes only, may represent only one view, and is not intended in any way as financial or investment advice. Any comment on specific securities should not be interpreted as investment research or advice, solicitation or recommendations to buy or sell a particular security.
We always advise consultation with a professional before making any investment and financial planning decisions.
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