According to the consulting team at Los Angeles-based Westmount Asset Management, a fully thought-out corporate departure plan should take into account both financial and business-related issues as well as personal ones (“Westmount”). Sellers who concentrate on the more quantitative elements of this procedure at the expense of personal preparation may come to regret the sale in the future, even though the earnings were more than generous. All three components are necessary.

According to Todd Goldman, Senior Advisor at Westmount and Certified Exit Planning Advisor, “selling a business that you spent years establishing may be an emotionally painful process.” “Your business may also provide you a strong feeling of identity in addition to providing you with financial security and stability. After the sale, that identity may drastically change, leaving you unsure of your identity apart from your business.”

In contrast to commercial or financial planning, personal planning entails evaluating one’s values and personal aspirations in order to prepare for life after the sale. This approach will vary from person to person, but in general it entails evaluating the social, experiential, physical, and spiritual areas of life that provide the individual the most fulfilment. The seller can then make plans based on these realisations for a life free from the constant obligations of running a business.

With the help of a “personal board of directors” who may offer guidance and act as a sounding board, Goldman advises going through this procedure. A variety of people can make up this personal advisory board, including a partner, child, closest friend, spiritual advisor, and many others. Sellers can also get assistance through this procedure and the frequently ensuing practical requirements from a dependable financial advisor, particularly one with extensive training on the full business selling lifecycle, such as a Certified Exit Planning Advisor (CEPA).

Source: Prnewswire