Wealth Managers play a key role in the exit planning process by offering critical financial advice and strategic planning expertise to ensure a smooth, financially sound retirement plan for business owners. According to Complete Financial Wealth’s CEO, Bob Weissbein, CWS of Naples, Florida, here are eleven ways wealth managers can assist an exiting business owner:
- Personal Financial Planning:
Wealth Managers help business owners develop a retirement plan, ensuring the business owner has sufficient funds to support his or her lifestyle after exiting the business, by providing strategies for managing and growing the wealth generated from the sale of the business combined with the business owner’s personal assets.
- Tax Planning and Optimization:
Wealth Managers develop tax-efficient strategies for the sale to minimize the tax burden on the business owner, considering capital gains taxes, income taxes, and other applicable taxes, and advise on the most tax-effective way to structure the transaction.
- Investment Strategies:
Wealth Managers assist in creating an investment plan for the proceeds from the sale, focusing on risk management & long-term growth, and recommend a diversified portfolio to protect the owner’s wealth from market volatility.
- Estate and Legacy Planning:
Wealth Managers help integrate the business sale into the owner’s estate plan, ensuring that their wealth is efficiently transferred to heirs and beneficiaries, and can advise on setting up trusts and updating wills to reflect changes in the owner’s financial situation post-sale.
- Cash Flow Management:
Wealth Managers provide a detailed analysis of the business owner’s current and projected cash flows to ensure the business owner can maintain their desired lifestyle into retirement and ensure that the business owner has sufficient liquidity to cover immediate and future personal financial needs.
- Succession and Continuity Planning:
Wealth Managers collaborate with other advisors to develop a comprehensive succession plan that ensures business’ continuity, aligns with the owner’s goals, and creates financial incentives and retention plans for key employees to maintain the stability of the business during the transition.
- Risk Management:
Wealth Managers review and recommend appropriate insurance coverage to protect the owner’s assets, ensure business continuity, identify potential financial risks, and develop strategies to mitigate them.
- Debt Management:
Wealth Managers analyze existing debts and recommend strategies for managing or restructuring debt to improve the financial position of the business before the sale. Wealth Managers can also assist the business owner by improving the business’ credit profile to enhance its attractiveness to potential buyers.
- Charitable Planning:
Wealth Managers advise on charitable giving strategies, including the establishment of charitable trusts or foundations, which can provide tax benefits and align with the owner’s philanthropic goals.
- Lifestyle Planning:
Wealth Managers help the owner plan for lifestyle changes post-exit, ensuring they can maintain their desired standard of living, and pursue new interests or ventures. Wealth Managers can also help the business owner put together a budget to manage expenses and income after the business owner exits the business.
By providing tailored financial advice and strategic planning, Wealth Managers ensure that business owners are well-prepared for the financial implications of exiting their business – helping the business owner achieve their long-term personal and financial goals.
About Greater Prairie Business Consulting, Inc.:
Greater Prairie Business Consulting, Inc. is an award-winning, national consulting practice serving entrepreneurs, small to mid-sized privately held and family-owned businesses and middle market companies of any type with revenues between $1 million and $250 million. The firm helps small, mid-sized and middle market companies maximize their performance and exit.
Greater Prairie Business Consulting, Inc. can be reached by calling 1-800-828-7585 or emailing info@gpbusinesssolutions.com.
About the Author:
James J. Talerico, Jr. is an award-winning author, speaker, and a nationally recognized small to mid-sized (SMB) business expert.
With more than thirty- (30) years of diversified business experience, Jim has a solid track record and an A+ BBB rating helping thousands of business owners across the US and in Canada tackle tough business problems to improve the performance of their organizations.
His client success stories have been highlighted in the Wall St. Journal, Dallas Business Journal, Chicago Daily Herald, and on MSNBC’s Your Business. He was named “Texas Business Consulting CEO of the Year,” by CEO Today Magazine, identified as a “Top 10 Management Consulting Entrepreneur to Watch in 2023” by Entrepreneur Magazine, was listed among the “10 Most Visionary Companies to Watch in 2023” by Inc. Magazine, and has also been ranked among the “Top Small Business Consultants” followed on Twitter.
For more than half a decade, Jim was a regular guest on “The Price of Business,” a nationally syndicated radio program on Bloomberg Talk Radio and has also appeared as a subject matter expert on many FOX Radio interviews. He is a regular contributor to several blog sites and has frequently been quoted in publications like the New York Times, Dallas Morning News, Philadelphia Inquirer, The Entrepreneur’s Review, and on INC.com, in addition to numerous, other industry publications, radio broadcasts, business books, and Internet media.
Jim received a Gold “Stevie Award” for “Thought Leader of the Year,” a Gold “Stevie Award” for “Media Hero of the Year During Covid” and a Bronze “Stevie Award” for “Best Entrepreneur” in the Category of “Business and Professional Services” at the American Business Awards ® in New York City. The competition received more than 3,700 nominations and is the premier accolade for business excellence in the US honoring organizations of all sizes and industries. Jim also received an “Outstanding Leadership Award” at the Money 2.0 Conference for his contributions to the financial services industry.
Jim is the author of “8 Steps to Becoming an ETHICS FOCUSED ORGANIZATION,”™ a small business certification program that utilizes a unique eight – (8) step approach for strengthening ethics in any organization. The certification program won the Better Business Bureau’s “Torch Award for Ethics” for the North – Central Texas Region, the International Better Business Bureau’s “ Torch Award for Ethics,” and a Gold “Stevie Award” for “Ethics in Sales” at the International Sales & Customer Service Stevie Awards ®. Participants who complete this certification program are eligible to receive eight – (8) continuing education units from the University of Texas’ Division of Enterprise Development.
Jim received his Certified Business Exit Consultant (CBEC) ® designation from The International Exit Planning Association (IEPA) to help entrepreneurs, small business owners, family businesses, and middle market companies maximize their business exit, and he received his certification in succession planning from the ASPE.
Jim is also a Certified Management Consultant (CMC) ® and an active member of the Institute of Management Consultants.
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