What financial planning should happen before an eventual business sale?

The first topic most people think of is tax planning. Some time should be spent trying to limit the size of the capital gain that comes from the sale. Estate planning is another area that should be looked at for decent size sales. These areas can come together and combine with trusts and charitable giving to help the same sale price have a larger impact.
Making a basic financial plan is a key component that many people under-utilize. If you know that your financial plan says that you need a sale of $6M, then a sale at $7M could look great. Sometimes, a business owner can be disappointed that they cannot get offers at the $15M they think their business is worth. After finding out that the sale would still cover all of their financial needs, they usually feel much better about it.

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