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Selling a business is a complex venture that involves several considerations. Even with a "plan for a plan," you will need to make decisions continually as you negotiate the various stages.

One of the first faced is whether the proceeds will suffice to fund future spending needs. Calculating this issue can be a bit technical but extraordinarily clarifying.

In some cases, clients were able to sell their business sooner than they expected. In others, clients have decided to postpone the sale and focus on making certain changes to increase the value of the business.

Almost all families have a minimum price at which it is practical to sell their business. That floor represents the asset pool needed to pay for their future lifetime spending. From a technical standpoint, the proceeds of the transaction must at least equal the net present value of future family spending. If this projected spending exceeds the post-sale asset base, the family risks running out of money at some point.

If the expected transaction value falls short of this number, there are a few options to consider:

1. Explore an alternative transition type that could fetch a higher sale price.
2. Postpone the sale and implement a plan to enhance the value of the business. 
3. Bring targeted spending in line with the resources the sale nets.

 Ultimately, your decision should harmonize your goals and personal needs.

Using the 3Ls when developing a post-exit roadmap can uncover pre-exit opportunities

Hypothetical segmentation (All values in USD)

Source: ÃÛ¶¹ÊÓƵ
*Accounts for donors income tax savings from charitable contribution to DAF. 
Timeframes may vary. Strategies are subject to individual client goals, objectives and suitability.
This approach is not a promise or guarantee that wealth, or any financial results, can or will be achieved.

Source: ÃÛ¶¹ÊÓƵ
*Accounts for donors income tax savings from charitable contribution to DAF. 
Timeframes may vary. Strategies are subject to individual client goals, objectives and suitability.
This approach is not a promise or guarantee that wealth, or any financial results, can or will be achieved.