Your business is a part of your identity, perhaps even a member of your family. A business sale can radically impact your life, your legacy, and the people you love most. That’s why every owner must ask a number of key personal questions before committing to selling their company.
- How much money do you need from the sale? You need a specific rock-bottom figure to work toward, as well as loftier goals, so that you can understand the personal effects of each potential sale option.
- How will this sale affect your estate plan? The right wealth transfer strategy may help you save money on both estate and income taxes. Transferring ownership to family members, trusts, or similar entities may help you capitalize on valuation discounts, potentially reducing taxes later. Get expert advice to help you plan.
- What are your charitable goals? Do you want to start a foundation? Donate proceeds to a charity? Leave something behind to a nonprofit you love? Work with an expert to ensure there’s enough money left after the sale to fund your charitable goals.
- How will the sale affect you and your family? This sale will be a major change. How will you spend your time after it is complete? How will the change in finances affect your future? Are your children expecting to play a role in the business?
- Is your business funding any of your personal expenses? If so, now is the time to shift those out of the business—both to preserve your financial health and to get your books in order.
- Do you intend to start another business? If so, what sort of funding do you need to make that business a success? How will the old business affect the new one? Will you be able to let go of the company you sell? Will there be any conflicts of interest?
