Are you a business owner thinking about selling your business and retiring? In this case study, we explore how our independent financial advisers (Jason Million and Charlotte Reynolds) helped two clients make the decision to sell their business and turn their goals of retiring early into comfortable and secure retirements.
Client background
Our clients are two former business owners, Martin and Matt. When they first came to Everlong Wealth for financial planning advice, they were in the process of selling their shares in a market-leading steel fabrication and manufacturing business.
Martin and Matt were receiving support in selling their business from the award-winning corporate finance team at our group company PKF Smith Cooper. The team referred them to us in 2019 for some initial pension planning ahead of the sale, which progressed into a holistic financial planning service and ultimately involved our full range of individual services.
Both clients continue to receive regular wealth management support from Everlong Wealth to this day.
Our key focuses
- Can the clients afford to sell the business? The first and most critical question we needed to answer was whether Martin and Matt were both in the financial position to sell their shares.
- Is early retirement feasible? Martin and Matt were relatively young when they first approached Everlong, which meant they were looking at a potential retirement spanning several decades. Determining the feasibility of such a lengthy retirement was essential.
- Are the clients’ current lifestyles sustainable? We needed to find out if our clients’ current lifestyles and spending habits were compatible with their long-term financial goals and later life needs or if changes needed to be made to make their wealth last.
- Effective wealth management for a post-sale windfall – Following the sale of the business, both clients would receive a substantial lump sum. Advising Martin and Matt on how to best manage this money would be vital to protect and grow their respective wealth for later life needs and passing onto future generations.
Cash flow planning and projections
One of the first challenges we faced was helping our clients finalise their decision to sell the business. We ran cash flow projections to assess both Martin and Matt’s individual financial situations under two scenarios – if the company was sold versus if the two men held onto their shares. The insights from this process provided our clients with valuable reassurance that a successful business sale would result in long-term financial security and gave them the data-backed confidence to proceed with the sale.
Cash flow planning was also crucial in determining the feasibility of early retirement. With both owners in their 40s at the time of selling the business, they needed to know if their wealth could last into later life and beyond. Using extended cash flow planning spanning more than 40 years, our advisers were able to ‘stress test’ a wide range of future scenarios and confirm that early retirement was possible.
This fundamental financial planning process was also used to evaluate the sustainability of Martin and Matt’s current lifestyles and spending habits when considering their long-term financial goals. This generated valuable insights that our advisers used to shape a bespoke wealth management strategy for each client, which aligned present and future needs in one all-encompassing financial plan.
Retirement planning
With early retirement the primary goal, comprehensive retirement planning was the central focus of our services for Martin and Matt. This included substantial pension planning before the business was sold, as the most generous pension contributions could only be made while Martin and Matt still owned the company.
Another key aspect of retirement planning was intergenerational planning, including inheritance tax planning. Our advisers had several discussions with each client and his family to discuss the financial needs of future generations. These discussions helped inform the contents of each client’s long-term financial plan.
Investment advice
An effective investment strategy was needed to protect the sudden windfall both Martin and Matt received from the business sale from the impact of fluctuating interest rates. It would also be crucial to grow its value over time. Our investment advice also focused on tax efficiency to preserve wealth.
The impact of early planning
As Martin and Matt consulted us when the business sale was in its earliest stages, our advisers had more flexibility in the wealth management strategies they could use and were able to present our clients with more options for the future. This meant we were able to have more of an impact on their wealth as we had sufficient time to make financial changes that would need several months to take effect and produce results.
Ongoing wealth management support
Martin and Matt continue to receive ongoing support from two of our leading financial advisers, Jason Million and Charlotte Reynolds, through our ongoing advice and review service. This covers annual reviews and ad-hoc financial advice when needed.
Ongoing support is an important part of our financial planning services that can improve long-term results. Both Martin and Matt’s circumstances have changed with time, along with their needs and goals, as we have guided them from their pre-sale lives into a comfortable retirement. This has required several updates to their financial plans and our wealth management strategies to keep them aligned to our clients’ long-term priorities.
Central to our ongoing support have been annual review meetings – these are an opportunity for Martin and Matt to share any important life updates that may affect their finances in the short and long-term and for our advisers to thoroughly review our clients’ financial plans to confirm they are still on track to meet their goals. The annual reviews are especially important for these two clients, as the lengthy nature of their retirements means sustaining their wealth is a priority.
Results
Martin and Matt benefitted from Everlong Wealth’s full range of individual services. Our advisers specifically focused on pension planning, tax efficient investments, inheritance tax planning and strategy, intergenerational planning.
With our help, our clients have been able to:
- Grow their pension pots before selling their business
- Pursue the early retirement they both dreamed of
- Make the most of their money during retirement, reassured that they have two independent advisers guiding and supporting their financial decisions every step of the way
- Build and protect generous inheritances for close family members
In our clients’ words
Martin’s testimony:
“Our relationship with Everlong began several years ago during the planning stage of our eventual exit from our business. We approached a handful of investment companies, but found real value in the true one to one relationship offered by Everlong.
“Jason’s knowledge and experience initially guided us through the transition from a familiar life as a business owner, to the unknowns of retirement and reliance on our investments as our main source of income. His guidance on a range of issues, not limited to purely financial matters, was invaluable to us.
“Jason, and more recently Charlotte, continue to provide down to earth and honest advice which has given reassurance that our finances are overseen by an experienced and trusted team.”
Matt’s testimony:
“From our first meeting with Jason and his team at Everlong in 2019, we could sense and feel the tight knit personal relationship that would be offered. At the age of 39 with a young family, this was essential when taking such a large step. The financial forecasting offered and subsequent advice has focused on a suite of investments to give maximum returns both long term and short term, with tax planning in mind – this has been and continues to be extremely important.
“Both Jason and Charlotte are always at the end of a phone to give advice and we meet at least once per year to discuss our portfolio in depth ensuring any changes to circumstance are catered for. Having worked with the team at Everlong for the last 5 years, I would have no hesitation in recommending them.”
Planning to retire? Wealth management and independent financial planning are key
Everlong Wealth is a proudly independent, chartered financial planning firm that safeguards finances and secures futures. There are no restrictions on the advice or support we can provide, meaning all our clients benefit from a holistic wealth management service encompassing a range of specialist financial planning.
Our team is led by chartered financial planners and possesses a wide range of expertise. Unlike many financial planning firms, we assign two advisers to every client to make sure you receive the premium service and continuity you deserve.
Contact us today to find out how we can help you achieve your retirement and later life goals.
