How much is enough for your client?

How much is enough for your client?

Imagine the scenario. A business is primed for sale after months of work but the final number isn’t right for the owner, so they pull out. Deal over.

Your entire team feel flat. The client is unhappy. The financial implications for your firm are large.

There is an alternative – starting with the end in mind.

Partnering with Capital Asset Management introduces a new experience. Prior to the ‘number’ being discussed, we work with the client to discover what their future looks like. What they are going to do for the rest of their life. Where they will live. The lifestyle they want. Gifts to family and charity. A few toys. Their passions. Travel. A second home. That sort of thing.

Their question changes from ‘how much can your firm get me?’ to a simpler ‘how much is enough?’ How much do they really need to have a happy and secure financial future without the fear of ever running out?

Very few business owners ever stop to work it out. There are few accountants, bankers, solicitors or financial advisers who have the expertise to take the owner through the process.

It’s tricky, complex and emotional. It involves asking deep questions and probing areas that many owners may not have given much thought to.

Your client’s ideal lifestyle determines their need for cash flow post-sale and what the minimum after tax sale value needs to be.

The company numbers need to be carefully worked through. A form of reverse engineering undertaken to arrive at the answer to the big question – what is the ‘number’?

An introduction to an independent financial planning firm like Capital who can build the family financial ‘roadmap’ and help them get clarity on their number can be valuable.

Here’s the strange thing. Our experience tells us that the number is often lower than the value of the business. They don’t have to hold out for every penny. No need to pull out. Enough is enough. It gets them there quicker.

Finding a willing buyer may be easier, when the number is clear.

We’ve got a great document which explains a real-life client story that could be used to generate a little interest from some business owner clients. Drop me a line if you want me to send you a copy. If you prefer a face-to-face conversation, call me on the number below and we can meet for coffee.

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