Piggy bank wearing glasses in a classroom

I'm selling my business

You’ve worked hard to build your company and now you want to transition out of business ownership. There are many things to consider, from how you will be paid, to what you will do with the proceeds, and more. Finding a trusted financial partner is the first step toward navigating the ins and outs of this major life event.



Develop a plan – A business succession plan lays out the roadmap for transitioning out of business ownership.

Choose a transfer option – There are important implications to take into account no matter which method you choose, from selling outright to transferring ownership to a family member. Consult with a financial advisor about the most beneficial option for you.

Look at buyer finance options – You may want to finance the purchase for your buyer, or maybe you’ll decide a tax-free stock swap with the company buying your business is best.

Plan your income stream – When transferring ownership to a family member, you can ensure an income stream for yourself through an annuity. After an outright sale, you’ll want to look at how you should invest your profits to produce the future income you will need to live comfortably.

Consider the tax consequences – Examine the tax implications of how you are paid and then how you invest and manage the proceeds. A financial advisor can help you make tax-smart decisions.

Roll over your retirement fund – Consider rolling over retirement savings from your company into an IRA. You could end up paying lower fees and have more investment options. Plus, the money will still have the potential to grow tax-deferred.

Reconsider insurance – If you’re leaving a business that was providing your healthcare policy, you’ll want to plan for future healthcare needs. Additionally, you may no longer need a life insurance policy that was intended to replace an income. But you may have new requirements, such as the need to protect your assets in the event you are sued.

Look at an estate plan – Start thinking about to whom you will leave your accumulated wealth. An estate plan can help reduce taxes and increase the amount you pass on to your heirs or maybe consider establishing a “Lifetime Gifting Program” for them.

Infographic-8 steps to consider when selling your business

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.