What to Do After You Sell Your Business

What to Do After You Sell Your Business

Much of the thought and effort you put into selling your business is in regard to the marketing and sales processes. However, far too few sellers consider what they should do (and have to do) once the sale is complete. In other words, you should know what you want to do after the purchase agreement has been signed and you have received payment for your company and transferred ownership to the buyer. In this review, we take a close look at what to do after the sale is complete. 

Before You Sell: Establish Your Long-Term Goals and Vision

First, let us discuss the importance of establishing your goals for the sale and your long-term vision. This should ideally occur when you are considering selling. You can check out our guide on how to establish your long-term goals and vision for more information. This is important to do because it allows you to focus clearly on why you are selling and what is on the other side. 

 

Moreover, it helps you stay focused when you face challenges and frustrations (and possibly setbacks) during the sales process. Specifically, consider asking yourself the following questions in regard to planning your long-term goals and vision: 

 

  • What is most important to me? 
  • What are my concerns and worries?

    Logistics picture
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  • What are my biggest priorities?
  • What opportunities are available to me after I sell?
  • What strengths, talents, and capabilities do I possess?

Assist The Buyer With Ownership Transition (if Necessary)

The majority of business sales involve transition assistance from the seller. This involves training the buyer to ensure there are no disruptions in business operations. The terms of the transition are negotiated prior to closing. For some sellers, this involves remaining on the staff and working with the buyer in a full time capacity and for an indefinite period of time. In other cases, the seller may only provide consulting services over the phone or may not be needed with the transition at all. Whatever the case may be, fulfilling obligations as it pertains to ownership transition is the first step to complete once the closing has concluded and the business is officially in the buyer’s name.

Take Time for Yourself and Check Off Bucket-List Items

We also recommend taking time for yourself after the sale is complete. You have likely worked very hard and poured countless hours (and stress) into building your company. Consequently, you may need time to decompress. Consider taking a vacation with your family. You can also use this opportunity to catch up with your loved ones and spend time with them. Once your batteries are recharged and you have decompressed, then you can look toward your future investments and professional interests. 

Remain Patient and Avoid Forcing Any Big Life Decision

You should not feel obligated to jump into any investments immediately after you sell. Instead, reflect on where you are currently and the goals you have for your future. This is important to remember as you may have countless financial advisors urging you to invest your money as soon as possible (see below). Although you should at some point implement a sound investment strategy, you do not have to rush the decisions as it pertains to your wealth management. 

Choose Your Wealth Management Advisor Wisely

Now that you have sold your company, you are a prime target for wealth management advisors. It can be of great benefit to working with a trusted and reputable wealth management advisor who genuinely has your best interest in mind. However, you should choose your wealth management advisor wisely. Make sure the advisor you choose has the right motive; there are far too many scams, and far too many people fall into bad investments after they sell their company due to poor consult from their advisor. 

Establish a Tax-Efficient Monthly Income Stream

You now have access to a considerable sum of money. For many owners, this becomes overwhelming. A tax-efficient monthly income stream is a great way to help ensure the money lasts for decades and allows you to organize the wealth better long term. Specifically, your income stream should cover your monthly expenses and allow you to live comfortably, while still ensuring your excess wealth is properly invested and grows over time. 

Develop an Estate Plan and Charitable Giving Strategy

Last but not least, you should consider an estate plan and charitable giving strategy. An estate plan provides instructions about the future of your wealth and assets. More specifically, it primarily focuses on how your estate will be divided in the future. An estate plan involves establishing a will, guardianship designations, healthcare power of attorney, and beneficiary designations.

 

Also, many sellers decide to provide charitable donations to causes that are near and dear to their hearts. This, first and foremost, allows you to give to those who are in need, but it also allows you to minimize your tax obligations if done the proper way. There are several ways to give charitably and minimize tax obligations, such as family non-profit foundations, charitable trusts, and directly providing gifts of cash to non-profit organizations. 

Need Assistance Selling Your Business? Contact Our Business Broker Today

Here at Sigma Mergers and Acquisitions, we care for our client’s well-being before, during, and after they sell their business. Our relationship with clients does not end once they have closed the sale. Instead, we are here to help them and answer their questions throughout the transition as well. If you have questions or would like to work with us as you plan and execute your sales strategy, then contact us today.

Sigma Mergers & Acquisitions is the leading Mergers and Acquisitions, Business broker advisory firm in Dallas Texas specializing in facilitating strategic transactions for businesses across diverse industries. Our seasoned team of experts meticulously navigates clients through the intricate process of Business brokerage, mergers, acquisitions, and divestitures, ensuring seamless transitions and maximizing value. With a client-centric approach, we offer tailored solutions designed to meet the unique needs and objectives of each organization. Our comprehensive suite of services encompasses every aspect of the transaction lifecycle, from initial valuation and market analysis to due diligence, negotiation, and post-merger integration. Through a combination of extensive industry experience, market insights, and unparalleled dedication, Sigma Mergers & Acquisitions delivers exceptional results that drive growth and prosperity for our clients. Whether you are considering selling your business, seeking strategic acquisitions, or exploring other growth opportunities, trust Sigma Mergers & Acquisitions to be your trusted partner every step of the way. Contact us today to discover how we can help you unlock the full potential of your business and achieve your strategic objectives.

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Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.

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Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

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