Summary
Business owners eyeing a sale must first calculate their "wealth gap"—the difference between current assets and the amount needed to maintain their lifestyle post-sale. For instance, a couple requiring $300,000 annually would need approximately $9.5 million in pre-tax liquid assets. With $1 million already saved, they'd need to net $8.5 million from the sale to bridge this gap. Accurately determining this figure is crucial; accepting an offer without this insight risks financial shortfalls in retirement. Proper planning ensures that the sale proceeds align with long-term financial needs, safeguarding future stability.
Kiplinger
