You’ve just sold your business. Now you’re faced with coming up with the best financial plan that will keep most of your proceeds in your pocket. To do that, you’ll need to protect your profits so that you can ensure your future as well as your family’s.


First, things first!

Until now, most of your net worth has likely been on paper. Selling a business might mean that for the first time, much of your net worth is actually in cold hard cash, sitting in your bank account.

Ideally, your exit plan from your business devised ways for you to minimize your tax burden on the sale of your business.

Once that’s accomplished, the first thing you should do is protect your fortune. Contact a private wealth management firm to begin this process. There are many individual variables that can influence the best course for your situation. You can benefit the greatest from having a highly specialized financial plan that will secure your wealth for years to come.

A financial specialist can help you determine your discretionary and non-discretionary expenses. Your non-discretionary expenses are the necessary expenses you need to live on such as your mortgage, groceries, health insurance, etc. Conversely, your discretionary expenses are those that aren’t vital, such as vacations, entertainment and eating out, etc.

You may be asked questions like:

  • What are your upcoming cash liquidity needs?
  • How much do you need to live on each month/year to accommodate the standard of living you’re accustomed to?
  • Are there other things that need to be accounted for in considering these things, such as a plan to reduce your expenses when you hit a certain age?

The idea is to figure out how much your expenses are expected to be and to have a financial plan to meet those objectives for years to come.

You may now have $50 million in the bank from the sale of your business, but if you’re only 40 years old and you spend $5 million a year on your current lifestyle, you’ll need to find ways to cut back or grow your money so that it lasts beyond 10 years. Which leads us to…


Devising a Strategy to Grow the Proceeds of Your Business

With the help of an expert, you’ll need to build a financial portfolio to meet the needs you’ve determined. One way to protect your windfall is to diversify any investments you make.

You may be advised to diversify your investments through bonds, stocks, mutual funds, or even real estate. Diversification helps to minimize your risk when you’re investing for the long term.

Ultimately, the amount of risk you can take depends on the financial goals you’ve identified.

As a business owner, you’re accustomed to risk. You may need to risk more if it’s important to you to maintain your current lifestyle for a longer term and your financials don’t quite add up.

Conversely, if you have more than you need, you may want to minimize those risks. Either way, you likely have more investment capital than you’ve ever had. It’s prudent to have a solid financial plan to preserve your ultra-high net worth while also generating any additional income you may need.

Ultimately, whatever financial plan you embark on, it’s important to stick to it, tweaking it as needed when your circumstances change. Speaking of change…


Protect Your Family’s Future and Plan for Your Estate

Selling a business is a time of transition. As an ultra-high-net-worth individual, you’ve probably already created steps to ensure that your family’s provided for should something happen to you. Even if you have, it’s worth reviewing these things since your circumstances have changed.

Make sure you address the following:

  • Create or update a will for your estate as well as a living will in case you can’t make decisions for yourself.
  • Name or update guardians for any minor children.
  • Review the beneficiaries of any policies you have.
  • Establish a trust for your assets. This can help to avoid the probate process.
  • Identify a central location for all your important financial information and provide a list of the information to someone who will carry out your wishes.
  • Make sure you have a college savings plan for your children, if applicable.

Wealth planning and the preservation of your wealth are more important than ever now that you’ve sold your business. It’s important to meet with a wealth management firm who understands all the variables at stake.

The Badii Group has helped many business sellers protect and grow the proceeds of their business, empowering them to maintain their ultra-high net worth status for years to come. We can do the same for you. Contact us today so that we can work together to devise a solid financial plan for your future.