Five wealth planning strategies for navigating a successful business sale

For many business owners, the business isn’t just an asset — it’s a reflection of your identity, your life’s work and often your largest source of wealth. So, when it comes time to sell or transition a closely held company, it’s rarely just about the numbers. It's about control, legacy, family, timing and taxes — and it’s deeply personal.

If you're already reviewing a letter of intent (LOI), it may be too late to start planning. Ideally, conversations around liquidity, estate planning and aligning business and personal goals should happen well before an offer is on the table.

Here are five key strategies to help you prepare and maximize the outcome of a sale:

1. Align your business and personal goals

Many owners make the mistake of separating business planning from personal financial planning. In reality, they can be inseparable.

Ask yourself:

• What does my ideal life look like after the sale?
• How much do I need — after taxes — to maintain that lifestyle?
• Do I want to launch something new, invest in others or give back?

Example: A manufacturing company founder received a $60 million LOI only to realize the net proceeds wouldn’t support his retirement vision. That gap forced him to delay the sale and restructure the business to better align financial outcomes with personal goals.

2. Start estate planning before the LOI

This point cannot be stressed enough: Estate and tax strategies should be implemented before an LOI is signed.

Once an offer exists, the IRS considers the business’s value “known,” which dramatically limits your ability to shift wealth out of your estate at a favorable valuation.

Example: A tech entrepreneur gifted minority shares to a dynasty trust before any formal offer. When her company later sold for $180 million, nearly $40 million in value remained outside her taxable estate — avoiding future estate taxes altogether.