Business Owners
Know what your business needs to be worth, prepare for a sale and turn the proceeds into lasting financial security for you and your family.
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Financial Planning for Business Owners
Your business has a value. Your future needs a number.
Know what your business needs to be worth, prepare for a sale and turn the proceeds into lasting financial security for you and your family.
Make the business work for your future
A first meeting can help you understand the questions to answer, the figures to gather and the next steps to prioritise.
Selling the business is not the end goal
For many owners, the business is their largest asset and the main source of future wealth.
But the headline sale price is not what funds life after the deal. Tax, costs, debt, deferred payments and earn-outs can all reduce or delay the amount you can actually use.
The question to answer
After tax and transaction costs, will the money you receive be enough to support the life you want – for as long as you need it?
Start with the Outcome
How much does the business need to sell for?
1
Capital needed
Lifestyle income, one-off spending, gifts, debt repayment and a safety reserve.
2
Less other resources
Pensions, investments, cash, property income and any future earnings.
3
Equals net sale proceeds needed
The usable amount that must arrive after the transaction.
4
Allow for the deal
Tax, fees, debt, ownership shares, deferred consideration and earn-out risk.
5
Set the target sale value
A planning target for the business, not a promise of what a buyer will pay.
What to bring to a first conversation
A rough idea of your personal spending, pensions and investments; recent business accounts; the ownership structure; any valuation or buyer approach; and the people you want the plan to support.
Plan Before the Transaction
Tax efficiency is about the whole deal
Tax planning should happen before heads of terms are agreed. The legal structure, timing and form of consideration can change both the tax bill and the risk you take.
- Compare a share sale with an asset sale where both are possible.
- Check whether Business Asset Disposal Relief may apply.
- Review pension contributions and profit extraction before the sale.
- Model cash, loan notes, deferred payments and earn-outs separately.
- Coordinate financial, tax, legal and corporate finance advice early.
Current Tax Point
For qualifying disposals from 6 April 2026, Business Asset Disposal Relief applies an 18% Capital Gains Tax rate, subject to a GBP 1 million lifetime limit and the detailed qualifying conditions. Tax rules can change and individual advice is essential.
After the sale: create the family plan
A large cash balance can feel secure, but it is not yet a long-term plan. The proceeds must be organised around short-term commitments, future income, investment risk and the people you want to support.
01
Secure
Set aside tax, fees, near-term spending and a suitable cash reserve.
02
Provide
Build a sustainable income plan and test it against market falls, inflation and a long life.
03
Pass On
Coordinate gifts, wills, powers of attorney, pension nominations and inheritance planning
A Joined up plan
How Celtic can help
01
Before
Calculate the target number, test different sale values and timings, and identify planning gaps.
02
During
Model deal structures and payment terms, while working alongside your tax and legal advisers.
03
After
Create an income, investment and family wealth plan that can adapt as life changes.
Frequently Asked Questions
Start with the income and capital your future lifestyle requires, then deduct pensions, investments and other income. Finally, allow for tax, fees, debt, ownership shares and any deferred or uncertain payments. Cash-flow modelling can show whether the likely net proceeds are enough and how much margin you have.
Ideally, begin three to five years before you hope to sell. That creates time to reduce owner dependency, improve financial information, strengthen recurring earnings and deal with risks a buyer may use to reduce the price. Even if a sale is closer, planning now can still improve the outcome.
The answer depends on the company, your ownership, the proposed deal and your wider finances. Review the sale structure, relief eligibility, pension planning, profit extraction, timing and deferred consideration before commercial terms become fixed. Your financial planner should coordinate with qualified tax and legal advisers.
First reserve cash for tax, fees and near-term needs. Then design a sustainable income and investment plan around your goals and tolerance for risk. Family planning may include gifts, trusts, wills, powers of attorney and pension nominations, with legal and tax advice where required.