Selling a Business Due to “Retirement, Relationship Breakdown, Death, or Disability?”
There’s a myriad of reasons that you may be selling a business. Many business owners not only fail to draw the full value for there business, but they struggle with the timing when they want to retire. The main reason for this is that they have failed to plan or create their ‘Exit Strategy’.
As a Financial Planner of over 20 years I can help you solve this issue. Here is a short list of things I can help you achieve with an improved Financial outcome for your business and your family:
1. Risk Protection Strategies (Pre- retirement):
“I often hear stories of business owners that had set a date for Retirement having to prolong their working life due to the unexpected”.
Our Risk Protection Strategies can provide protection if you, your family, or another valuable employee suffer a serious debilitating health issue, or die suddenly. We’ll show you how to protect your business against an event like this so that your Retirement is not delayed. “Keep your plans under your control”
2. Superannuation Accumulation Strategies (Pre-retirement):
The common question – “How much is enough for me to Retire comfortably?”It’s an all too common question, but the answer is never simple. The reason it’s not simple is that everyone has different goals, needs, and expectations of what their Retirement should look like. Therefore, until you have sat down and had that honest one-on-one discussion with a Retirement Planner like myself you will find it difficult to answer this question. I have 20 years of assisting people to do just that, and a Masters Degree that’s taken me many years of study to attain. Let me use my knowledge to make it easier for you to reach your goals.
Most people just bounce along without a plan and consequently don’t get to retire when they want to. If we can assist you to put the correct amount of super away each year in the correct type of investment, paying the least amount of tax, then we can usually predict within a year or two when you will retire, and roughly how large your superannuation asset will be. Wouldn’t this be good to know well before you retire?
As a member of ‘Lake Macquarie Business Hub (LMBH)’ we can work collaboratively with your accountant, lender, or legal representative to give you the absolute best outcome for your Super Investments.
3. Retirement Planning, & Income Transition Strategies (Pre & Post-retirement):
“Many business owners find it really hard to pull away from their business” – There a numerous reasons for this including: not knowing the best time, not being able to afford to do so, not letting their long term clients down, no-one they trust to take over, not knowing what they would do without their work. These are just some of the reasons. Having a proper plan in place can help you avoid all the excuses for not retiring when you really want to.
A good planner doesn’t just consider the financial impact, they also consider the emotional impact, and the affect on the extended family &/or business partners. It’s important that your transition is as smooth as it possibly can be, and this can’t happen unless you have sat down and discussed all your expectations and worked out what is actually realistic. You also need to know what will really satisfy your goals, wants, and desires. I can help you work through this and come up with a realistic plan that will give you a workable timeframe that you, your business, and your family can work with.
4. The Unexpected Retirement or Business sale – “Death, Disabilty, or Divorce” (Pre- & Post Retirement):
“Sometimes in life no matter how much we plan our choices are made for us” It’s true that things in life don’t always go to plan. The 3D’s (i.e. Death, Disability, and Divorce) are often reasons business owners are forced to sell up or Retire early. Sometimes it may mean that the loss of assets can force you to have to work a little longer. It happens a lot these days. The ‘stats’ tell us that 50% of marriages end in divorce, and one in 3 of us will experience some form of Cancer, Heart attack, or Stroke before we reach retirement age. Given this, having a Financial Planner by your side can help when these events occur. A planner can cut through the emotion and give you a realistic plan as to how and when Retirement from your business may be possible.
If retirement has been forced upon you and you are selling the business, then the allocation of funds becomes paramount from a taxation, asset, and income perspective. This time is usually critical as we find that those that don’t implement a plan after these events often squander there assets quickly and prolong their working lives. With a well thought out plan or strategy they may have been able to structure the business and personal assets in such a way that they could retire now, or in the near future. Sometimes it just takes another persons perspective to see your situation in a whole different light.
“Don’t miss this opportunity!”
The old adage rings true:“Failing to Plan, is Planning to fail”
We’re here to help
Retirement planning can be a complex area and there may be tax or Age Pension implications which you need to be aware of before making any decisions.
Contact Brad Lonergan (Financial Planner Newcastle and Lake Macquarie) for more information about downsize my home for retirement for Newcastle and Lake Macquarie residents.
Call 0423 621 120 or email brad@bmkfs.com.au
