What to Do After Selling a Business [2025 Guide]

Quick Answer

After selling your business, take 30-90 days to decompress and avoid major decisions. Park proceeds safely, assemble a wealth management team, address immediate tax planning, and define personal goals before developing a comprehensive investment strategy. This deliberate approach prevents costly mistakes and sets the foundation for long-term success.

Key Takeaways

•Take 30-90 days to decompress before making major financial or life decisions
•Assemble a wealth management team including advisors, tax professionals, and estate planners
•Park proceeds in safe, liquid vehicles while developing a comprehensive investment strategy
•Address immediate tax planning opportunities and year-end optimization
•Define personal goals, risk tolerance, and income needs before investing aggressively

First 30 Days: Immediate Priorities

Decompress and Process

Selling your business is emotionally and mentally exhausting. Take time to rest and process the transition before making major decisions.

Avoid committing to new ventures or investments immediately
Spend time with family and reconnect with personal interests
Reflect on what you want your next chapter to look like
Acknowledge the emotional complexity of leaving your business

Secure and Park Proceeds

Move sale proceeds to safe, liquid accounts while you develop your long-term plan:

Open accounts at reputable institutions with FDIC/SIPC protection
Use money market funds, short-term treasuries, or high-yield savings
Avoid investing in stocks, real estate, or illiquid assets immediately
Ensure liquidity for tax payments and near-term expenses

Address Immediate Tax Planning

Engage tax professionals immediately to optimize your tax situation:

Calculate estimated tax payments for federal and state
Identify year-end tax optimization opportunities
Review installment sale or deferred compensation structures
Consider charitable giving strategies (DAF, QCDs)
Coordinate with your CPA on tax return preparation

Days 30-60: Build Your Team

Assemble Professional Advisors

Interview and hire a comprehensive wealth management team:

Wealth manager or financial advisor with exit experience
Tax accountant familiar with high-net-worth situations
Estate planning attorney for trusts and asset protection
Insurance specialist for liability and life insurance review

Define Goals and Constraints

Work with your advisors to clarify objectives:

Income needs and lifestyle spending requirements
Risk tolerance and investment time horizon
Charitable giving and legacy goals
Family education funding or wealth transfer plans
Business or real estate investment interests

Days 60-90: Execute Your Plan

Develop Investment Strategy

Create and implement a diversified investment plan:

Asset allocation aligned with goals and risk tolerance
Diversification across asset classes, sectors, and geographies
Tax-efficient investment structure (taxable, IRA, trusts)
Dollar-cost averaging for equity exposure
Alternative investments for qualified investors

Finalize Estate Planning

Update estate documents to reflect your new financial situation:

Revocable living trust for asset management and probate avoidance
Updated will, powers of attorney, and healthcare directives
Beneficiary designations on accounts and insurance
Consider irrevocable trusts for tax efficiency and asset protection

Frequently Asked Questions

Take at least 30-90 days to develop a thoughtful investment plan. Rush decisions often lead to regret. Use this time to interview advisors, clarify goals, and educate yourself on investment options. Keep proceeds in safe, liquid vehicles (money market, short-term treasuries) during this period.

It depends on interest rates, tax implications, and liquidity needs. High-interest debt should generally be paid off. However, low-interest mortgages or business loans may be tax-advantaged and provide flexibility. Consult with tax and financial advisors before making large debt payoff decisions.

A common guideline is 3-5% of net proceeds for one-time lifestyle upgrades or charitable giving. Avoid lifestyle inflation beyond sustainable levels. Model your spending against investment returns and long-term income needs to ensure capital preservation.

Even financially sophisticated individuals benefit from professional guidance post-exit. Wealth managers provide accountability, access to institutional investments, tax optimization strategies, and estate planning coordination. At minimum, engage advisors for specialized areas like tax and estate planning.

Common mistakes include over-investing in a single asset class, failing to diversify, making emotional decisions, overspending on lifestyle, neglecting tax planning, and trusting the wrong advisors. Having a disciplined plan and surrounding yourself with trusted professionals helps avoid these pitfalls.

Many successful entrepreneurs feel the urge to jump into a new venture immediately. Resist this impulse initially. Take time to reflect on what you want next. If entrepreneurship is your path, structure investments to preserve capital while you explore opportunities. Avoid betting everything on the next venture.