What should business owners do after a liquidity event?

Most of the biggest tax savings and planning should happen prior to the sale. After the sale, the challenge becomes how to use the wealth. This can include how to prepare your children or grandchildren to better handle it. This can also include determining causes you want to support and in what way. The goals can become much more abstract than prior to the sale, but they can also become much more meaningful.
This can be a difficult transition for business owners. Many of the skills that made you successful might not be as useful and there might be some skills that are missing. We like to help clients answer the question, “What does your wealth mean to you”, and we do this through a series of conversations. If the sale is large enough, this next stage can be similar to running a business, but the industry and goals are very different. For example, a $30M portfolio could be producing $3M per year in “revenue”.

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