Ultimately, entrepreneurs need to make sure they engage someone they can trust. It is inevitable that once an owner sells their business and “cashes out,” there will be a constant flow of investment requests and opportunities that can be considered alongside a sound wealth management plan.Ĭhoosing the right financial/wealth advisor is imperative. We help them assess their personal goals and current situation to ultimately avoid risky ventures. We ensure our clients get the right advice from the right people when they are looking to make investment choices or planning for their future. Best for maximizing value and sale price Best for commercial real estate You can read our full reviews of each business broker here. These investments are often not successful choices. If you want to sell your business, you’ll need a business broker. This is typical with some pro-athletes who invest in expensive cars or a restaurant or a buddy’s great idea. Some will spend it on foolish things or make poor investment choices. What they really need to watch out for is what I refer to as "the bright shiny objects," what some entrepreneurs see once they have a lot of money. In our experience, entrepreneurs are quite sharp and look after the capital from the sale of their business, as long as they prepare well. ( Read also: Podcast: A Guide to Building Family Legacy and Wealth.) One should engage a financial planner or an investment advisor in order to ensure the money they earned in the sale is protected. Most owners seek to ensure that their family is provided for in the future. The passive use of capital involves ensuring that their estate is protected. They may be at a stage where they are not interested in running a company any longer and are looking to retire. Older clients, on the other hand, may not want to invest in a new business. They’re young enough to stay around and work for a buyer, and there’s value to that, but they often want to sell to start a new venture. A good broker is worth more than the fee you pay them. Young entrepreneurs have a lot of options. A broker will guide you through the complex business-selling process and do a lot of the heavy lifting for you. We view that scenario as a positive thing. Sometimes, when a private equity firm buys a client’s business, it may be a requirement in the deal that they "stick around" for a while and work for the acquirer. If a client is 45- to 55-years-old, it is likely they may start or acquire a new business or invest actively in somebody else’s business. Many of our clients are young enough and have a lot of energy and productive years left to be able to work. ( Read also: Podcast: Getting Emotionally Ready for Life After Business, an Interview with Laura Rich.) The age or health of a business owner can actively dictate what they choose to do after selling a business. The latter will face different challenges and will often accept post-sale life reluctantly. An entrepreneur who is exiting their third company will handle selling with more ease than one who started and stayed to build their company for more than 30 years. Of course, every owner is different and at a different stage of life. A New Venture or a Well-earned Retirement?
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