Getting used to the idea: selling your business

In practice, I see many entrepreneurs between the ages of 45 and 60 starting to prepare for a sale. They are also being approached more frequently by private equity parties, which can speed things up significantly. Questions often arise, such as: what does a sale actually involve, how long do I want to continue working, what will happen to my staff, and am I getting the most out of my business if I decide to sell now?

I discuss these questions with my clients and place particular emphasis on defining their own course. What feels right for the client? And what are their main wishes after the sale of the business?

I am often asked: “What is my business worth at the moment?” It is a difficult question to answer and depends on several factors. I then put clients in touch with corporate finance firms that can support them further. In practice, the highest value is not always the best deal. Various conditions play a role, such as how long you want to continue working in the business and at what remuneration. You may receive part of the proceeds upfront, with the remainder in the form of a subordinated loan or share capital — all of which affects your overall wealth position.

It is important to start preparing your business for sale in good time. This begins with ensuring a flexible business structure. Make sure any excess liquidity sits in your own holding company, and that business activities and the company premises are placed in separate entities. This creates optimal flexibility for selling different business components and avoids corporation tax on the sale proceeds. Only once you need these funds for your personal expenses will the company pay out dividends, on which you must pay income tax (box 2). We have an extensive network to connect you with legal, tax and/or notarial experts who can support you further.

From the initial stages through to completion, I think along with you. This includes business matters such as a flexible business structure and tax considerations, but also personal aspects relating to the sale and the risks involved. Think of situations such as incapacity, divorce or death. These topics are often not discussed, even though they are essential for both your business and your private circumstances.

Using a Wealth Plan, I give clients insight into how much of their wealth is needed to realise their aspirations. This might include a beautiful car, a second home abroad or philanthropic goals. We then discuss the available options and how best to grow their wealth. This helps determine to what extent their long‑term financial needs are covered. There may even be sufficient scope to transfer wealth to the next generation.

Selling a business is a significant step for you, your family and your organisation.