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Business sale case study

Dan Woodruff
Dan Woodruff

Case study on how we helped a business couple to prepare their business for sale so that they could stop working and start doing the things they really wanted to do with their lives. As part of the process we helped them understand how much money would be needed to fund their desired lifestyle without ever running out of money.

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helped their children to benefit earlier without paying tax Case Study along the way. Business Sale We created an investment plan to generate a flexible income to fund their retirement in a tax efficient way whilst taking the least risk necessary to achieve this. Summary: We helped a business couple to prepare their business Outcomes and Impact: for sale so that they could stop working and start doing By working with their other advisors we were able to the things they really wanted to do with their lives. As efficiently help them to make best use of their business part of the process we helped them understand how assets and enabled them to focus on getting the business much money would be needed to fund their desired into the right format to be sold. We gave them the lifestyle without ever running out of money. confidence to sell while they were still fit and healthy so that they could enjoy their accumulated wealth. Background: We also helped them to realise that they had more assets We had been working with a family owned business for that they would need and therefore gave them the chance a number of years, when the time came to sell the to assist their children financially. business and think about retirement. The clients needed help to evaluate the lump sum needed to achieve their future lifestyle requirements. Continuing Support: Each year we schedule two reviews with the clients. The first is to re-evaluate their financial situation and revise Problems/Challenges: their financial plan so that we can take into account any The first issue was to work out how much the client changes to their circumstances and re-assess whether needed to achieve their future lifestyle aspirations. It they remain on target to meet their long-term goals. was helpful that we had been working alongside the business owner, their Accountant and their Business The second meeting reviews the clients investment Coach for a number of years. portfolio and aims to keep it on track towards its goals while taking the least risk needed to do so. Following the business sale they needed to organise their finances in a coherent way to make sure that they had a secure basis to provide them with enough income Please contact us to fund their retirement. for further details: Our approach: Woodruff Financial Planning Prior to the business sale we worked with the other business advisers to help the clients evaluate the value The Colchester Centre, Hawkins Road, of their business and to help them work toward their exit Colchester, Essex CO2 8JX. strategy. As a result of this the clients were able to Email: advice@woodruff-fp.co.uk successfully sell their business to a rival company. Fax: 01206 266885 Once the business had been sold, we re-evaluated the Tel: 01206 266882 clients future lifestyle requirements which would obviously change as they moved into retirement. This www.woodruff-fp.co.uk would mean a change in emphasis from accumulating to spending and would mean much more leisure time. We developed a financial plan to demonstrate that the clients had enough money to fund their future lifestyle, and that in fact as a result of the business sale they were in danger of having too much. This could be an issue in the future for their children as they would be liable to pay inheritance tax of 40%. We were able to set up a plan to gift some assets to their children while maintaining enough money to fund their lifestyle. This Principal: D Woodruff. Woodruff Financial Planning is Authorised and Regulated by the Financial Services Authority. This document is for information only, and does not constitute financial advice. This document is aimed at United Kingdom residents only. 息 Woodruff Financial Planning. No unauthorised reproduction is permitted without prior consent.

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Business sale case study

  • 1. helped their children to benefit earlier without paying tax Case Study along the way. Business Sale We created an investment plan to generate a flexible income to fund their retirement in a tax efficient way whilst taking the least risk necessary to achieve this. Summary: We helped a business couple to prepare their business Outcomes and Impact: for sale so that they could stop working and start doing By working with their other advisors we were able to the things they really wanted to do with their lives. As efficiently help them to make best use of their business part of the process we helped them understand how assets and enabled them to focus on getting the business much money would be needed to fund their desired into the right format to be sold. We gave them the lifestyle without ever running out of money. confidence to sell while they were still fit and healthy so that they could enjoy their accumulated wealth. Background: We also helped them to realise that they had more assets We had been working with a family owned business for that they would need and therefore gave them the chance a number of years, when the time came to sell the to assist their children financially. business and think about retirement. The clients needed help to evaluate the lump sum needed to achieve their future lifestyle requirements. Continuing Support: Each year we schedule two reviews with the clients. The first is to re-evaluate their financial situation and revise Problems/Challenges: their financial plan so that we can take into account any The first issue was to work out how much the client changes to their circumstances and re-assess whether needed to achieve their future lifestyle aspirations. It they remain on target to meet their long-term goals. was helpful that we had been working alongside the business owner, their Accountant and their Business The second meeting reviews the clients investment Coach for a number of years. portfolio and aims to keep it on track towards its goals while taking the least risk needed to do so. Following the business sale they needed to organise their finances in a coherent way to make sure that they had a secure basis to provide them with enough income Please contact us to fund their retirement. for further details: Our approach: Woodruff Financial Planning Prior to the business sale we worked with the other business advisers to help the clients evaluate the value The Colchester Centre, Hawkins Road, of their business and to help them work toward their exit Colchester, Essex CO2 8JX. strategy. As a result of this the clients were able to Email: advice@woodruff-fp.co.uk successfully sell their business to a rival company. Fax: 01206 266885 Once the business had been sold, we re-evaluated the Tel: 01206 266882 clients future lifestyle requirements which would obviously change as they moved into retirement. This www.woodruff-fp.co.uk would mean a change in emphasis from accumulating to spending and would mean much more leisure time. We developed a financial plan to demonstrate that the clients had enough money to fund their future lifestyle, and that in fact as a result of the business sale they were in danger of having too much. This could be an issue in the future for their children as they would be liable to pay inheritance tax of 40%. We were able to set up a plan to gift some assets to their children while maintaining enough money to fund their lifestyle. This Principal: D Woodruff. Woodruff Financial Planning is Authorised and Regulated by the Financial Services Authority. This document is for information only, and does not constitute financial advice. This document is aimed at United Kingdom residents only. 息 Woodruff Financial Planning. No unauthorised reproduction is permitted without prior consent.