We have a strong reputation and very good relationships with entrepreneurs who are going through a process of selling their business.”
Katharine Taylor
Client Adviser
Both courage and caution are needed to forge your own fortune. Too often entrepreneurs neglect their personal finances in pursuit of business growth. But it's never too early to seek the right advice - whether you're planning what to do with the proceeds of sale or need a nest egg while your business grows.
Preparedness and partnering with the right experts can make the journey that much smoother – and more impactful.
Selling a business: personal considerations
Pushing out matters of personal wealth to the post-sale period may have financial implications when it comes to decisions about dividing business and personal assets, tax planning and charitable donations. So it makes sense to optimise certain entry points before, during and after business sale. We've outlined some key moments below.
Partnering with an adviser early on can help you avoid common costly structuring, planning and taxation pitfalls and preparing early for future spending is preferable to waiting until you secure your cash post-sale. You might also like to prepare family, friends and dependents ahead of the sale, as public disclosure may require sensitivity and discretion.
Securing cash from day one is not as straightforward as it seems. Firstly, you'll need to consider matters of liquidity and security, opening the right accounts in advance. Then there's the question of what to do with your wealth – with life-changing consequences. So it's best to wait a while before you take any long-term, irreversible decisions.
As you look forward, it helps to divide your assets into 'pots' with varying degrees of risk and return – from cash and tangible assets like a family home or jewellery, to riskier growth assets, such as remaining business interests. You'll also want to plan how much to place in a 'nest egg' and consider how you might fund your future lifestyle.
Investment decisions post-sale are critical when it comes to protecting your hard-earned wealth for generations to come. You'll want inflation-beating returns over the long term.
Business succession planning
Think about both your business and personal finances, and consider business succession planning so your company can continue to grow in the future. We’ve helped many entrepreneurs at all stages of their growth journey, from start-up to sale.
Your personal finance outlook will be different depending on whether you ultimately want to stay in control of your company, take a step back from day-to-day management or to sell the business entirely. That’s why we created a pre-exit entrepreneurs hub to help guide you through the process.
Whether you’re growing your business or are ready to sell, it’s never too early to prepare both your personal and business finances. We can support you before, during and after a sale.
Selling a business: corporate considerations
The market environment, the nature of the business, and your personal and professional objectives are key factors in your decision to sell, so you'll want a strong personal advisory team alongside your corporate one. We work closely with our Global Advisory division and Arrowpoint Advisory to champion your personal interests, while your corporate team can focus on your business.
It’s crucial businesses find the right time to sell, this means considering the performance of the business, the receptiveness of the market and alignment of leadership and shareholders. Jeremy Furniss, Managing Director at Arrowpoint Advisory and Tim Phillips, co-founder of Gate One, shared their expertise on how entrepreneurs should prepare for any future exit. Watch this now.
Rothschild & Co for founders
For those who build wealth, not just hold it. Read thoughtful guidance on the decisions founders face as they build a business, shape their wealth, and plan for what comes next. From early growth to exit and beyond, discover insights from our team of experts designed around the realities of the founder journey.
