As business owners, we understand the analogy that our company is “our baby”. So much time goes into the creation and growth of a company that the time commitment feels very much like raising a child. Sometimes business owners are fortunate enough to create companies that are later acquired by another individual or firm which often leads to a very large liquidity event.
While the years leading up to that liquidity event are all but sudden, the business owner does experience sudden wealth because of the shift from his or her wealth tied up in their business to possibly millions of dollars now sitting in their bank account.
What is life now like for the business owner who has sold his company? Along with the realization that they feel the excitement of very large numbers in their checking account, there are questions that are revealed. What do I do now? How will this effect my family? My friends? My community? For some, without their business, they may experience stress due to a loss of identity.
The average person might welcome these questions in exchange for financial security, but often the emotional challenges in this type of sudden wealth may be larger than the financial challenges. Here are three non-financial tips for a healthy life after you have sold your company:
- Maintain your network of colleagues/associations/friends.
- Take time to smell the roses before tackling your next big project.
- Invest in a few sessions with a family therapist to gain clarity on your new life.
Of course, prior to a business sell transaction, you must choose the advisory firm that can guide you through the financial challenges you will face. Choose wisely as all wealth management firms don’t have a specialty in sudden wealth cases; this may be the only company you ever sell.
Make sure your advisors have enough experience to guide you through the process.
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