Key Takeaways: 
  • Entrepreneurs should consider life after selling their business long before they sell. It is easier to accept selling if they are prepared for it and committed to selling a year or two before they actually sell.
  • Discuss plans with your spouse, family, close friends who own businesses and their trusted advisors. Business ownership is typically the focal point of one's life and it is a big change.
  • An entrepreneur exiting their third company will handle selling with more ease than one who built their company over 30 years. The latter will face different challenges and will often accept post-sale life reluctantly.
  • Younger sellers are likely to start or acquire a new business or invest actively in somebody else’s business. 
  • Sometimes, when a private equity firm buys a business, it may be a requirement for the seller to work for the acquirer for a period of time. 
  • Older clients may not be interested in running a company any longer and are looking to retire.
  • In order to be successful post-sale, entrepreneurs should take control of their destiny and consider the active use of their time and capital as well as the passive use of their capital.
    • Active use of time and capital includes investing in another business or volunteering.
    • Passive use of capital involves engaging a financial planner or an investment advisor in order to ensure the money earned in the sale is protected.
  • Be careful not to spend your money on foolish things or make poor investment choices. 
  • Choosing the right financial/wealth advisor is imperative. Ultimately, entrepreneurs need to make sure they engage someone they can trust.