The situation
Sarah is the founder of an SME with around 40 employees. She had been approached by two potential acquirers and was starting to think seriously about selling within the next five years. Most of her wealth was tied up in the business. Her personal pension contributions had been modest. She had a will from a decade ago and not much else by way of personal financial planning.
Three things were on her mind. Was she financially ready to step away? Would the eventual sale proceeds support the life she wanted afterwards? And how much of it would actually reach her children, given the recent changes to Inheritance Tax and Business Property Relief?
What we did
We worked with Sarah and her accountant to map the full picture, business and personal together. The starting point was a cash flow model that showed what life after sale could look like at different sale prices, after tax, factoring in her existing assets and the lifestyle she wanted to maintain.
From there we focused on three areas. First, we maximised employer pension contributions from the business in the years before sale, building a meaningful personal pension pot from money that would otherwise have sat inside the company. Second, we put key person cover in place, both for Sarah personally and to protect the value of the business in the run-up to sale. Third, we worked with her solicitor on a proper will, on lifetime gifting where appropriate, and on the implications of the Finance Act 2026 cap on Business Property Relief.
We also worked with Sarah on conversations with her two adult children about the eventual succession plan, in a way that felt right for her family.
The outcome
Sarah still expects to sell within the original timeline, but the plan around the sale is now significantly stronger. The personal pension pot has grown materially. The protection cover is in place. The will and lifetime gifting strategy reflect the post-2026 IHT rules.
The cash flow model gave Sarah the confidence to negotiate the sale terms from a position of clarity, knowing exactly what she needed from the deal and what was a stretch. The conversations with her children, structured carefully, have made the eventual transition feel like something the whole family is part of, rather than something happening to them.
Service areas: Director & owner advisory, Inheritance tax planning, Pensions & retirement
Names and identifying details have been changed. The work and the outcomes described are real, and reflect the kinds of situations we help clients navigate.