Friday Highlight  

The role of cash flow modelling when selling a business

Post-sale: Can I take care of my loved ones and live the kind of retirement I would like?

Cash flow modelling will again support this part of the journey, as it is at this point that the now ex-business owner can start considering gifting, as well as securing their own future needs.

Ongoing financial advice is also important at this stage as there may be changes in circumstances, legislation, and investment markets, which must be considered year on year.

Review regularly

It is important for an adviser to review the cash flow model with their client on a regular basis to ensure it is up to date and reflects any circumstantial changes, however minor, as they can make a huge difference in the longer term.

Selling a business can be an emotive and complicated experience for business owners.

However, the role of an adviser and the use of cash flow modelling to forecast and test multiple scenarios can really help to provide clarity for business owners.

Duncan Macpherson is a chartered financial planner at Punter Southall Wealth