Is This the Right Deal for Me and My Family? Why Financial Planning Should Start Before You Exit Your Business

Selling a business isn’t just a financial decision — it’s a deeply personal one.

After years (or decades) of hard work, business owners often reach the point where it’s time to move on. That might mean selling to a third party, transitioning to family, or winding things down. But one of the most common questions we hear in those early conversations is:

“How do I know this deal is right — not just for the business, but for my family and my future?”

At Ella Rose Financial, we believe the best time to speak to a financial planner isn’t after the deal is done — it’s early in the process, when there’s still room to align the financials with what truly matters to you.

Selling a business isn’t just a financial decision — it’s a deeply personal one.

Here’s Why Early Financial Planning Matters

1. It helps define what 'good enough' looks like

Many owners head into negotiations without a clear view of how much they actually need to live the life they want after exit. That can lead to accepting less than they should — or holding out for a figure that doesn’t materially change their future.

Real-life example:
A client recently approached us with an offer on the table — £3 million for their business. They weren’t sure if it was “good enough” but in their own words, they were “tired and ready to take a step back”. After running the numbers, we showed them how, after tax and reinvestment, this would generate an income that comfortably supported their desired lifestyle, allowed them to help their children with deposits, and fund the travel they’d long put off. Knowing that gave them the confidence to proceed.

2. It supports smarter deal structures

A planner can work alongside your accountant and solicitor to assess the shape of the deal — not just the headline figure. For example:

• Would a share sale or asset sale be more tax efficient?

• How might an earn-out affect your cash flow and future plans?

• What are the pension or gifting opportunities before completion?

Making these decisions before finalising the heads of terms can significantly improve the outcome.

3. It highlights what’s at risk — and what’s protected

For many, the business is the biggest asset in the family’s financial plan. We help clients model different outcomes — from best-case to worst-case — so they can see how their goals hold up under different scenarios.

Example:
One client was considering a phased exit over 3 years. We modelled the plan and flagged that, if the buyer defaulted on later payments, it could put their retirement plans at risk. This insight helped them negotiate stronger protections and ring-fence part of the proceeds for immediate use.

What If I Don’t Know What I Want Yet?

That’s okay — many business owners don’t. Part of our role is helping you get clear on what life after exit might look like. That could include:

• Taking time off and not rushing into ‘the next thing’,

• Supporting children or ageing parents,

• Or investing in a new venture that’s more aligned with your current values.

Whatever your priorities, we help you test them against real numbers — so decisions aren’t just emotional, they’re informed.

It’s Not Just About the Money

Financial planning brings objectivity to a process that’s often full of emotion. Whether you’re passing the business on to family or negotiating a third-party sale, a planner acts as your sounding board — someone who understands the numbers but also listens to the personal drivers behind them.

Thinking About a Business Exit?

If you’re even starting to think about selling or stepping back, a conversation now could help you get clarity and control before the pace picks up. You don’t have to wait for a firm offer to start planning — in fact, the earlier, the better.

This blog is for information only and does not constitute financial advice. Tax treatment depends on individual circumstances and may be subject to change. Business exits involve a range of financial and legal considerations, and professional advice should always be sought before making decisions.