---
title: "Life After Selling a Business: Insights and Outcomes"
url: https://stacklist.com/card/418a8876-986c-41ac-8b33-090e2f619079
source_url: "https://www.morganstanley.com/articles/life-after-selling-a-business-insights-and-outcomes"
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summary: "Life After Selling a Business explores the emotional and practical aspects of transitioning after selling your company, addressing grief, identity loss, and opportunities for new pursuits. The article provides insights from wealth management experts and frameworks for preparing psychologically and planning future goals during this pivotal life change."
tags: "business-sale, wealth-management, emotional-transition, entrepreneurship, life-planning, identity, post-sale"
key_entities: "Mark Jansen (person), Dr. Kim Henderson (person), Dr. Daniel Lerner (person), Family Office Resources (organization), Morgan Stanley (organization), Strategic Family Solution, LLC (organization), grief-and-loss (concept), identity-separation (concept), wealth-management (concept)"
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# Life After Selling a Business: Insights and Outcomes

Wealth Management Navigating the Emotional Transition of Selling a Business Preparing for life after the sale of your business involves reflecting on your success and setting goals for the future. Author Mark Jansen, Executive Director, Family Office Resources Key Takeaways Selling a business can lead to feelings of loss or grief, but it can also open doors for new pursuits and ways of living. The social impact of the transition can be significant as your relationships with colleagues or clients may change. Separating your personal identity from your business can be challenging but also liberating, proving an opportunity to find new meaning. Selling a business is a chance to realize your hard work and success in a new, tangible way. Still, stepping away from your brainchild or life’s work can spark complicated emotions, like grief or the loss of identity or purpose. Some business owners have even expressed that it feels like they have been set adrift. “As a physician, I have witnessed countless patients experience grief from the loss of anything that brought them pride and joy. A business that you create, perfect and ultimately sell may trigger feelings of grief,” says Dr. Kim Henderson, Head of Wealth Management Health and Wellness Education at Morgan Stanley. “During grief, you may experience denial, anger, bargaining, depression and ultimately acceptance. It is important to take your time to process and engage your social and wellness networks to support you through this journey and embark on a new chapter in your life.” Even with these challenging feelings, transitioning from your role as a business owner can open doors, freeing up your time and energy for new pursuits and ways of living. By taking time to prepare for the transition and reflecting on your goals for the next chapter, you can face this pivotal phase with the excitement and pride it deserves. Start Preparing by Looking Ahead Dr. Daniel Lerner, Founder of Strategic Family Solution, LLC, believes underlying values play a significant role in the success of your emotional journey. "In my experience shepherding entrepreneurs through this process, I have found that quality of life and mental health after the sale is highly correlated on who you were and what you valued while building your business,” he says. “One former client, who at age thirty-nine sold his software company for almost half a billion dollars, enjoys spending more time with family, lifelong friends and meaningful charitable pursuits—all three of which were enduring priorities that were complementary to his entrepreneurial activities,” says Lerner. i Even with these challenging feelings, transitioning from your role as a business owner can open doors, freeing up your time and energy for new pursuits and ways of living. The process of selling your business can be hectic and all-consuming. In fact, the pace often seems to accelerate as you get closer to the actual sale, leaving little or no time for anything else. But it’s important to try to take the time to reflect before the sale (or early in the process) about the changes it may cause as well as your wishes for the transition and goals for the future. Prepare for how long the transition will take. For some transactions, it can be a matter of weeks, while others may involve a transition that lasts months or even years. If you plan to stay on, it’s important to use the time before a sale to chart your future involvement and set your own expectations, as well as those of your team. Try to consider how you would like to spend your time and energy after the sale. Think about a framework for the activities you would like to pursue after the transaction. Consider researching philanthropic opportunities, mentoring programs, passion projects or even new entrepreneurial ventures. You needn’t obsess over every detail or look too deep into the crystal ball. After all, you want to enjoy your newfound free time and explore opportunities. But a small amount of planning can help mitigate sudden feelings of uncertainty for you, your family and your organization. Shifting Your Social Network For many business owners, running a company is a labor of love; they spend large parts of their lives entrenched with colleagues, solving problems and celebrating wins. Employees, clients and board members often become lifelong friends, which can pose a challenge during a transition: Now that the relationship is shifting, how can you stay connected? Will you draw boundaries about discussing matters related to the business? Assessing the social impact of your transition from the business–and having preemptive conversations–can help you move forward and approach new opportunities without uncomfortable or time-consuming entanglements. You may also want to consider how new or existing networks can help you start pursuing your post-transition goals such as volunteer opportunities, mentorship and new business ventures. It’s also important to consider the social network within your own home. Selling a business can affect your relationship with a spouse and children—typically for the better. You can take that vacation you’ve been putting off and spend more time with the kids or grandkids. But be cognizant that you may be spending more time in their social networks, so it’s important to discuss expectations and boundaries. Finally, be mindful that selling a business may change the tenor of your conversation with family members. Naturally, this may bring up questions about the transfer of wealth and estate planning considerations, so be prepared to discuss the impact of the sale on those important topics. The good news is that successful entrepreneurs bring an invaluable toolset to these transitions and discussions. Being inquisitive, resourceful and determined can lead you to the organizations and people that will support this new phase of your life. Planning for Your New Financial Picture With a transaction of this magnitude, you and your family may have an entirely new financial paradigm and level of wealth. Careful pre-transaction estate planning can create a secure future for your family. For those who wish to transfer substantial wealth to descendants, thoughtful pre-transaction planning may reveal significant opportunities to do so with favorable gift tax results. It can also establish and fund significant charitable vehicles for future philanthropy. Before the sale, you may want to establish a target annual spending amount including expenses that were previously covered by the business. You will also need to consider—and discuss with a Financial Advisor—how this liquidity event affects your investment strategy. With a significant amount of assets identified as long-term or legacy assets, a large portion of your portfolio might consist of alternative investments. Alternatives often have a low correlation with traditional markets, spreading your risk. Of course, due diligence and understanding of these alternatives are key. Your financial planning may also require considerations for tax efficiency that align with a new set of goals. Even for those who do not wish to transfer substantial wealth to family or make substantial charitable gifts, the increased liquidity that results from a business sale may provide opportunities for meaningful gifts, whether to family members or philanthropic causes. Assets can be used to fund the purchase of a new home or college tuition for children and grandchildren, for example. New assets can also enable you to establish a philanthropic vision—or supercharge an existing one. As your focus and needs change, it’s important to reengage your Morgan Stanley Financial Advisor so they can adapt your plan to your new reality and goals. i Don’t underestimate this opportunity to find new meaning and opportunities in your personal and professional life. Closing Your Doors Opens Others Perhaps most challenging of all, selling your business requires you to separate your personal identity from the business you’ve worked hard to build. "Many entrepreneurs who build successful businesses do so by prioritizing work over family and other endeavors that require meaningful allocations of time, creativity and emotional energy. As such, your self-identity, status and goals are inextricably related to your company and industry," says Lerner. While this change can certainly be unnerving and create a crisis of identity, it can also be breathtakingly liberating. Don’t underestimate this opportunity to find new meaning and opportunities in your personal and professional life. Try to reflect on the people you most enjoy spending time with and the values they demonstrate. Are there activities and opportunities, perhaps a hobby or organization, that can bring you closer to others who share those values? Often, those opportunities exist closer to home. Something as simple as an annual family retreat can be a useful way to not only spend more time with family you weren’t always able to see during your busy periods but also to speak openly with them about how your lives may change after the sale. Whatever the next chapter looks like, don’t forget to find moments to celebrate your success and reflect on the exciting opportunities and possibilities that lie ahead. Your Morgan Stanley Private Wealth Advisor can help assist you in the process. Wealth Management Founder Survey Reveals Insights on Growth, Capital and the Path to Liquidity Founders are broadening capital strategies, embracing interim liquidity solutions such as tender offers, and paying close attention to IPO readiness, according to Morgan Stanley’s Founder Survey. Wealth Management AI and Cybersecurity: A New Era In the evolving landscape of artificial intelligence (AI), both cybersecurity teams and hackers are using AI to their advantage. Wealth Management Financial Planning for Life After Selling a Business Selling your business can mean big changes for your life, both personally and financially. Know how to make the most of your windfall. Wealth Management Building a Family Enterprise That Lasts Successful family businesses establish a shared mission and succession plan to endure for generations to come. Wealth Management Founder Survey Reveals Insights on Growth, Capital and the Path to Liquidity Wealth Management AI and Cybersecurity: A New Era Wealth Management Financial Planning for Life After Selling a Business Wealth Management Building a Family Enterprise That Lasts Discover more Insights to help you go further. Business Owners Private Wealth Management Disclosures: This material has been prepared for informational purposes only. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley Smith Barney LLC (“Morgan Stanley”) recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. 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