Is Your Client Selling a Small Business? Here’s How to Ensure You Are Part of the Conversation

Executive summary:

  • Advisors who have business owners as clients need to adapt their discovery process and service plans to help these independent and resourceful investors. This is most important when the clients are selling their business to fulfil their retirement dreams.
  • A trusted advisor can play a vital role helping business owner clients manage the windfall they receive when selling their business. A key consideration is the impact of taxes when receiving a lump sum of money.
  • Life decisions and financial decisions are inextricably linked. We look at the case study of one couple who forgot to make that connection and the impact that had on them.

Who doesn’t love horses? The image of a wild, powerful stallion galloping freely across the plains is an integral part of U.S. mythology. The strength and versatility of horses—from pulling wagons and herding cattle to helping fight fires and carry soldiers into war—also make them creatures to admire.

So we can all probably understand the desire of a hardworking middle-aged couple to sell their regional trucking and transport company and fulfil their dream of owning a horse ranch. I don’t know about you, but the idea of spending my golden years watching those majestic beasts roaming around my property seems idyllic.

Sadly, the story of this couple can serve as a cautionary tale for business owners and advisors alike. While they found the right buyer for the right price for their business, they didn’t think to include their financial advisor in the discussions and their retirement plans didn’t quite work out the way they had hoped.