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Entrepreneurs Wealth Management

We have a strong reputation and a very good relationship with entrepreneurs who are going through a process of selling their business.”

Client Adviser Katharine Taylor

Fortune favours those who are prepared

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. 

The entrepreneurial journey encompasses many opportune moments where decisive action can make a dramatic difference to business and personal outcomes.

Preparedness and partnering with the right experts can make the journey that much smoother - and more impactful.

Selling a business: Personal considerations

Planning your personal finances pre-sale and post-sale.

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.

1. Pre-exit

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. 

2. Point of sale

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. 

3. Post-sale

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. 

4. Investing

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.

Selling a business: corporate considerations

Partnering personal with corporate advice

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 to champion your personal interests, while your corporate team can focus on your business. 

Man walking up the stairs of Rothschild & Co New Court office

The journey to sale

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 Furness of Arrowpoint Advisory and Tim Phillips, co-founder of Gate One, shared their expertise on how entrepreneurs should prepare for any future exit.

Ready to begin your journey with us?

Insights

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