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After selling a company, entrepreneurs often have considerable liquidity and newfound freedom. A large proportion of their assets are no longer tied up in the company, but can be invested freely.

We recommend taking enough time to plan the new phase in life and preparing for the new role as an investor. Only then can the ideal asset structure be determined and the appropriate investment strategy be carefully implemented. In practice, we often see former seasoned entrepreneurs making hasty investment decisions in this new situation.

Important: Experience has shown that those who continue to approach their new role as an investor with an entrepreneurial mindset are likely to make mistakes. This often means that the newly available liquid assets are invested directly in well-known companies that the entrepreneurs have become familiar with during their entrepreneurial activities. This approach can lead to a familiarity bias, a tendency to focus on investments or markets that they are already familiar with, resulting in increased risks due to a poorly diversified portfolio. The ÃÛ¶¹ÊÓƵ Wealth Way recommends a systematic approach to reducing these risks.

ÃÛ¶¹ÊÓƵ Wealth Way is a global advisory approach from ÃÛ¶¹ÊÓƵ that assists investors in managing their investments in three steps: (1) discussion of values, (2) financial planning, estate planning and asset structure as well as (3) Liquidity. Longevity. Legacy. asset strategies.

Planning to sell your company? Or do you have other sources of liquid assets that you would like to invest? The three steps of ÃÛ¶¹ÊÓƵ Wealth Way will help you to select the ideal investments and investment properties for your personal situation.

Step 2: Financial planning, estate planning and asset structure

Once the first step of discussing values has been completed, the next step is to analyze the current and future financial situation in order to understand it in detail.

This involves preparing a private financial plan showing income and expenditure as well as the development of assets over the next few years. The aim is to gain an overview of the current asset situation and to define how assets should develop in the future in order to achieve personal financial goals. The financial plan serves as the basis for creating the investment concept.

With estate planning, legal arrangements to protect loved ones and philanthropic considerations become apparent. As entrepreneurs often also hold company shares, additional coordination is required to clarify dependencies between the private and business sides and to take legal, tax and estate-related aspects into account.

ÃÛ¶¹ÊÓƵ defines the asset structure as the composition of total assets. This step clarifies the question of whether real estate, shareholdings, investments or art should be held privately or through a company. To this end, ÃÛ¶¹ÊÓƵ provides an overview of the client's entire asset structure (see illustration below for an example). On the basis of this overview, it is possible to identify and discuss alternatives that reflect the values and objectives and ideally also offer legal, tax and estate-related advantages.

Step 3: Liquidity. Longevity. Legacy. asset strategies

This step involves creating the actual investment concept after the values, goals and financial situation have been assessed. It is based on the findings from the two previous steps. We recommend that entrepreneurs align their total assets with the following three strategies:

1. The liquidity strategy serves to maintain your own lifestyle and covers expenditure over the next three years. Defining a liquidity strategy helps entrepreneurs to generate cash flow with resources that are not exposed to market risks. Although liquidity is important, investors should not hold too much.
2. The longevity strategy is aimed at satisfying long-term needs and covers expenditure after four years until the end of life. A longevity strategy is designed to finance all expenses for the rest of a person's life, helping the entrepreneur to retire securely and comfortably.
3. The legacy strategy is intended to benefit the lives of third parties. In practice, this involves donations to children or philanthropic activities. The legacy strategy represents the portion of assets that exceeds personal needs.

As large investment sums often have to be invested when companies are sold, we recommend building up the three asset strategies at different intervals. It often takes more than twelve months to implement a comprehensive investment concept in practice. Once the ÃÛ¶¹ÊÓƵ Wealth Way has been fully implemented and the investment assets have been built up, the decisions must be regularly reviewed and adjusted if necessary.

Selling your own company offers a unique opportunity to align and invest your new liquid assets with your own values and life goals. This means letting go of old habits as an entrepreneur, becoming accustomed to the role of investor and making a fresh start. This requires planning enough time.

As a trusted partner, ÃÛ¶¹ÊÓƵ assists entrepreneurs in tailoring their investments to their values, goals and personal risk profile with the ÃÛ¶¹ÊÓƵ Wealth Way. This provides entrepreneurs with peace of mind even in turbulent times.

Disclaimer:

ÃÛ¶¹ÊÓƵ Wealth Way is an approach incorporating the Liquidity. Longevity. Legacy. strategies. ÃÛ¶¹ÊÓƵ and its financial advisors can use this approach to assist clients in exploring and pursuing their wealth management needs and goals over different time frames. This approach is not a promise or guarantee that wealth, or any financial results, can or will be achieved. All investments involve the risk of loss, including the risk of loss of the entire investment.