Frank and Catherine were introduced to us via their accountant whom has looked after their business for a number of years. We arranged an initial ‘Discovery Meeting’ at our expense to find out more about their lives, where they were financially and more importantly to establish their goals and objectives. Frank and Catherine started their business almost 20 years ago. Whilst being a profitable business (which allowed Frank and Catherine to live a very comfortable life) – they were working harder now than ever before. With their 3 children all grown up and financially independent, Frank and Catherine were somewhat frustrated that they felt trapped inside their successful but stressful business.
The Challenges and Issues Facing Frank and Catherine.
Frank and Catherine found it more difficult than ever to take any quality time off. They both enjoyed travelling, in particular Catherine who is very passionate about Skiing. They had both enjoyed at least two skiing holidays per year in the early days of the business but as the company has expanded and their clientele grown over the years, time had become a very scarce resource for Frank and Catherine. Catherine had always wanted to buy their own Ski Chalet within their favourite resort but never thought this would be possible. Frank and Catherine recently became Grandparents and were equally frustrated that they had no quality time to devote to their family. Frank had recently turned down an offer for the company of £2.5 million from a local competitor. Frank and Catherine didn’t feel it was the right time to sell and were unsure if this was the right amount to sell the business for.
What we did.
We spent our second meeting discussing in detail the lifestyle Frank and Catherine enjoyed now and how they wished to improve upon this once they had sold their company. As well as anticipated costs for Ski Holiday’s we also planned for the potential purchase of a Ski Chalet for Frank, Catherine and their family to use throughout the year. Having obtained details of their existing investments and income and more importantly broken down the costs of their desired future lifestyle, we calculated the amount of money needed, taking everything into account, to live the life they wanted, for the rest of their life, without fear of ever running out of money.
Through our Financial Planning process, we helped Frank and Catherine realise that they could comfortably sell their business for much less than they had first anticipated, only £1.8 million. This came as a big relief to them to know that if an alternative suitable buyer was found they could exit the business with the peace of mind that they could live their desired lifestyle without ever being concerned about having enough money. Frank and Catherine now knew the minimum amount they were willing to accept when before entering into any further negotiations to sell. Frank and Catherine ended up selling to the eventual buyer for £2.2 million the following year.
Again, our ongoing service with Frank and Catherine was NOT purely based on managing their money and investing their business sale proceeds, but on managing their financial planning strategy, in particular a comprehensive plan which allowed Frank and Catherine to continue to have the peace of mind to enjoy their life fully and give themselves the quality time needed to do all of the things they valued and enjoyed most.
In order to protect client confidentiality, the names in our case studies have been changed however they are all based on the true-life experiences of our clients.