Financial Clarity Before Signing a Deal

A couple approached us while preparing for the sale of a privately owned national distribution business and wanted support with business owner exit planning before signing a deal. The transaction was already well progressed. Due diligence was underway and the broad deal terms were agreed, including a mix of upfront cash, deferred earn-out payments, and equity in the acquiring company. On paper, the offer looked attractive.

Personal clarity was missing.

One partner felt energised by the opportunity and wanted to reinvest, improve the family home, and benefit from the growth potential within the acquiring group. The other felt more cautious and focused on downside protection.

This proposed sale represented more than a commercial transaction. It marked a shift from operating a business to managing personal wealth, and neither partner felt confident about what should happen next.

They were unsure how to handle the proceeds. They were also unsure whether proceeding on the agreed terms, and at that timing, was right for their family.

Business owner exit planning before contracts are signed

Before contracts were signed, we guided them through a structured pre-sale planning process focused on decision clarity.

This sits at the heart of our Cash Out With Confidence approach.

We started with values and priorities rather than products or investments. Together, we explored what financial security meant in practical terms, what level of lifestyle spending needed to be sustained, how they wanted to support their children’s future education, and what flexibility they wanted in the years following a sale.

Next, we translated the proposed deal into a financial model. The model included staged proceeds, earn-out timing, retained equity exposure, and tax treatment. This allowed them to see how cash would actually arrive and when.

This forms part of our fixed fee financial planning process.

From headline value to usable money

This work reframed the discussion from headline sale value to what money was available to put towards their key five-year objectives while the children remained in the family home.

The question shifted from:

“What are we getting?”
to
“What does this safely allow us to do?”

Clarifying priorities

Several priorities became clear.

They wanted a defined emergency reserve to provide peace of mind.
They wanted a structured path to reducing and clearing debt.
They wanted confidence that major planned spending, including significant home improvements, would not weaken their long-term position.
They also wanted a disciplined, risk-managed investment approach rather than making ad hoc decisions after funds were received.

Building a staged plan

We built a staged plan around those principles.

First, we ringfenced a six-figure cash reserve for security and flexibility.

Separately, we reserved funds to meet the capital gains tax liability due in the January following the tax year of sale, including tax due on deferred proceeds where the value becomes taxable before full receipt, using current guidance from HMRC.

We structured debt reduction so borrowing could be cleared within a defined timeframe without over-committing too early.

We then allocated money for planned home projects and lifestyle spending, testing monthly levels through long-term cashflow modelling.

Remaining proceeds were invested using a diversified structure across appropriate tax wrappers and investment accounts. Alongside this, we consolidated smaller legacy pensions into a coordinated retirement strategy.

Portfolio risk levels aligned with their agreed tolerance and time horizon.

This type of work also underpins our wider exit planning for business owners conversations.

Life after completion

Within the first full year post-sale, they had moved from uncertainty to structure.

Deferred proceeds remained on track.
Major home projects progressed without eroding their safety reserve (even though the budget was not hit, which rarely happens).
Spending and investment decisions were now tested against a long-term model rather than made in isolation.

They summarised the impact in simple terms:

“I’m able to sleep at night and not worry about money. They’ve helped us not only understand our financial position, but also the life choices it enables.”

The real outcome

The key change was not just financial organisation. It was decision confidence.

Instead of reacting to a large liquidity event, they moved forward with a coordinated framework covering tax, cashflow, investment, and lifestyle choices over the next decade.

The business sale became a managed transition rather than a disruptive sudden windfall.

This case illustrates that the highest risk in a business sale often sits around the decision period immediately before and after completion, which is why business owner exit planning matters so much.

When priorities, tax timing, liquidity needs, and sustainable spending levels are clarified early, proceeds can be directed with discipline.

The result is greater confidence, lower anxiety, and more consistent long-term decision making.