Business sale leads to lifetime financial freedom

[DRAFT — The wording of this client story is not final and has not yet been approved as a financial promotion.]

Background

Mr S had been in the insurance industry for over 25 years and had run his own successful insurance brokerage for over 12 of those years. Building the business had been a rewarding experience and his comprehensive knowledge of the industry had stood him in good stead. It was also, however, a tough slog, with an unending burden weighing on his shoulders. This pressure seeped back to the home, taking its toll on an otherwise happy family life with his wife and four children.

He faced a common problem for business owners, becoming fed up with little time for leisure activities and often missing out on key events in his children’s lives such as assemblies, parents’ evenings and sports days. In actual fact, there was little quality of life. Just work.

With his fifties on the horizon and company profits looking extremely vibrant, he was unexpectedly approached by a large national company to buy his business. With support from the team at Arkana, Mr S sought our advice moving forward, and we could see straight away that he had prudently saved into pensions, investments and property. But at this point there was still one big question which needed to be explored, and about which he needed total reassurance: whether this would be enough to allow him financial freedom.

The next step

This was an exciting proposition that nevertheless needed careful, non-hasty consideration. Mr S and the team at Arkana had already built a really good relationship and there was already a solid trust in place. At this crucial time, he needed a financial adviser to discuss a whole host of issues, not just financial but on a more personal level too. For example, would there be enough money to live comfortably, as he was still quite young to retire? The offer of the sale on the table was highly confidential, and much welcome discussion and research ensued.

Our help & advice

• We produced a clear and tailored report to outline the key issues Mr S faced and explored the solutions.
• This included looking at his existing portfolio of investments, also comprising a small property portfolio, and advising on its enhancement, looking at risk factors as well as other products which could lead to better returns under these new circumstances.
• We explored options to minimise tax liability where appropriate.
• In addition, we created a plan to utilise not only his but also his wife and children’s tax allowances, so that they could take an income efficiently, which encompassed a range of investments set up for this very purpose.

It was now clear that there was sufficient money to stop work and not only provide future financial security but also to be in the moment and immediately reap the rewards of a lucrative sale. If it all went to plan, he should be able to maintain an income to meet his desired requirements.

The outcome

The company sale went ahead successfully. Mr S felt that our simple but effective approach from when we first met, and our subsequent recommendations after he received an offer to buy his company, had allowed him to make some tough decisions in confidence. The entire process of selling his company was going to be a highly daunting and tough process in itself, so it was our pleasure to be able to reduce the worry and pressure in one major area and be a reassuring and listening ear throughout.

Mr S had achieved his goal and reason for selling in the first place — financial security and a better quality of life — with over £3m of proceeds, intelligently invested, providing financial security for life and the quality of life they had dreamed of.

What this does not do

This client story is general information, not personal advice. What is right for you depends on your own circumstances, and we would need to understand those before making any recommendation.

The value of investments and the income from them can go down as well as up and you may get back less than you invested. Past performance is not a guide to future performance.