We're planning the sale of our business

Richard and Kim were in their late fifties, but to be honest they looked and felt ten years older. They had been running their business together for the last eighteen years and it was taking its toll. They worked an average of sixty hours a week and spent Sunday mornings finishing off the paperwork. They felt constantly stressed and hardly had time to take any holidays or think about their future.

They were introduced to us by their accountant, who was suggesting they needed to do some planning, with a view to selling the business in five years time for its anticipated value of over £4m.

How we could help

When we had finished talking things through with them it became clear that their priorities were to:

  • Stop working as soon as possible;
  • Get back into sailing, which had been a passion when they were younger; and
  • Spend time with their grandchildren

We gathered together information on all of their existing pensions and investments, which turned out to be worth a considerable sum. We also helped them identify the amount of money they might need each year to live the life they wished for.

This enabled us to work out how much they would need to sell the business for now to be able to live the life they wanted, which turned out to be £2m. We were able to compare this with what would happen financially if they worked for another five years and sold the business for £4m.

The alternative showed a substantial sum that could be left to their two children but by going through the process they had realised that whilst they wanted to be able to help their children, they were not prepared to do so at the expense of their own health.

The outcome

Armed with the figure they needed they were able to work with their accountant to find a buyer for the company for the sum of £2.5m. This meant that they could give £500k to their children now, thus potentially saving significant inheritance tax, and start living the life they wanted.

And the accountant, well he became a client, as he realised we could do the same for him!