I've sold my business. What happens now?
Life after the sale
Selling a business may seem straightforward to outsiders. Someone successfully sells their business and receives a sum of money in return. However, the reality is often different. What do you do with the money paid into your account after the sale? And how do you deal with all the free time you suddenly have?
How entrepreneurs Dirk and Ann have invested their wealth
Entrepreneurs Dirk and Ann both received a nice amount of money when they sold their businesses. They took various risks when they ran their businesses. But what about their personal assets? Dirk prefers the safe option of cash, while Ann has opted for a more aggressive approach with shares and private equity.
An overwhelming phase
Selling your business more or less forces you to think about the future. It is usually a process that raises questions and uncertainties. You need insight, but at the same time you start to wonder what your life will look like after the sale.
The period after taking some time to relax or go on holiday
After a well-deserved break, you often find that the motivation to get back to work returns naturally. Holidays take on a different meaning when you no longer work, and you may be tempted to fill that empty Monday morning in your diary again. Have you ever thought about supporting the new generation of entrepreneurs in building their businesses or using your assets to make a positive impact on the world?
A new role as a philanthropist
Once you've sold your business, it may be time to shift your focus. What's your new goal? You may be considering giving something back to society, either on your own or together with your family. Talking about your giving strategy and family values can provide valuable insights.
Diversify your investments with Private Equity
As an experienced investor with substantial assets, you may want to invest in less liquid options alongside your liquid investments. In that case, Private Equity Advice can be an interesting addition to your portfolio.
Make an impact with your investments
Would you like to contribute to a better world? Your investments can make a difference. By opting for ESG investing or impact investing, you consciously invest in companies that are actively working towards more sustainability.
Frequently asked questions after the sale of your company
What to do with your assets now?
We understand that you may feel there's still a lot to arrange now that your business has been sold and the assets are in your bank account. Perhaps you don't know where to start. You may ask yourself questions such as 'What is my current situation?' and 'Do I have enough?' We are happy to consider this with you, but we advise you to keep the money in a savings account for a while first. This will give you some time to make well-considered decisions in peace. After a hectic period in your life, it's important to take some time to relax.
Do I have enough assets to remain financially independent in the long term?
Although this question is usually answered before the sale process, some sales are unexpected and quick. We understand this roller-coaster ride like no other. Your wealth planning is based on your age, personal wishes and goals. We also need to take into account factors such as inflation, the stock market climate, changes in the tax system and low interest rates on savings accounts. Diversifying your assets can be an interesting option. We are happy to help you draw up a Wealth Plan.
How do I ensure diversified asset accumulation after the sale?
After taking a few months to relax, the time will be right to ensure a well-diversified asset accumulation (known as asset allocation). To counter the effects of high inflation, high taxes and an uncertain stock market climate, it's important to diversify your assets. We will be happy to map out your overall financial situation with you and discuss your wishes and goals. We will then use various calculations to examine the impact if, for example, you want to start transferring your assets to the next generation or investing (more) in financial instruments, start-ups and/or real estate.
How do I reduce the visibility of my assets as much as possible before, during and after the sale?
This is an important issue that often receives (too) little attention in practice. Being aware of this is especially important. You can already take action before the sale. For example, you may consider changing the entire legal structure. We would be happy to discuss this with you and your advisor(s). Here are some quick wins that can be greatly beneficial to you:
- Give your holding company a different name than your business
- Do not establish your holding company at your home address
What can I do now that I've sold my company?
Our advice is to keep the money in a savings account for a while. This gives you the opportunity to relax, spend time with family and friends, and make informed decisions. See our page on the first year after selling your business for more insights. After this period, it makes sense to consider how you can effectively manage the proceeds from the sale. You may feel the urge to start using your entrepreneurial skills again, or you may want to use some of your assets to contribute to a better world.
How can I involve my family/children in donating to charities?
The sale of your business may have freed up time for your family and children. We are getting more and more questions from clients wondering how they can involve their children in philanthropy. It is important to first consider the mission of the family carefully as a whole as well as that of the individual family members. How can we contribute to a better world? What role can I play in the donations we make? How do I make my choices, how can I assess things and what's actually effective? But also, how do I share my choices with my family? Philanthropy is a great way to strengthen the bond between family members. It all starts with a giving strategy. The children are actively involved in creating this directional plan for now and the years to come. We will also discuss topics such as your giving budget and preferred ways of donating.
How can I best start giving to charities?
Donating money is a personal affair, which can sometimes get very complex all of a sudden. There's a long list of social or global challenges you could help to take on. Think of climate change, food insecurity, poverty (both near and far), children's access to education, or innovative medical treatments. All of these are equally necessary and important. We always advise our clients the same thing when they are making their choices: focus. Start by finding out what really matters to you. This will give you a sense of direction. By talking to you, we can discover what's truly important to you. This will result in your personal giving strategy – and that is a plan that will guide you now and in the years to come. We will also discuss topics such as your giving budget and preferred ways of donating.
Would you like to talk about your wishes and goals?
Not yet a client at ABN AMRO MeesPierson?
Why not meet us to discuss your Private Banking options, without any obligation? Schedule a call-back appointment, or contact us directly (on weekdays between 9 AM and 5 PM).
