Sail boat from port

29 Sep 2020

Wealth management for entrepreneurs

David Rolland

David Rolland | Investment Director

Managing wealth created by a business sale

Investec has helped many UK business owners to manage wealth created by a business sale and to protect their assets for the future. Here’s an example of a recent case, in which our team worked with Mr Jones before and after the sale of his business in the North of England.

Challenges of sudden wealth

Mr Jones sold his business to a US firm and received $9million. His first challenge was to exchange this to sterling. We could help: the sale proceeds were paid into a currency cash account at Investec Bank and our foreign exchange adviser gradually moved the money, fixing certain exchange rates to protect Mr Jones from volatility.

Post-sale, Mr Jones wanted to know:

  • What is the best way to manage these funds?
  • How much income can I create for my retirement?
  • How can I protect my estate from inheritance tax and retain some control of the assets?
  • Who can advise me on tax efficiency?
Like many entrepreneurs in his position, Mr Jones had grown and managed a successful business over many years, but he had never had to manage significant personal cash. He lacked the experience or confidence to invest his fund in anything other than a savings account.
How wealth management can help

We worked with Mr Jones prior to the sale, helping him ensure his company pensions were adequately funded. Aligning with the client’s objectives, we suggested creating a lower-risk portfolio which could both produce the significant sustainable income that he had been used to, as well as growing his fund year on year.

Working with our Financial Planner, we were also able to assist Mr Jones with his concerns about IHT liabilities, should he and his wife die suddenly. We presented both short and long-term solutions, enabling Mr Jones to provide for his family’s future, whilst retaining access to capital and income.

The best solutions for your unique situation

Using our range of services, we were able to assist Mr Jones with his business sale and provide expert advice and solutions to strengthen and protect his new-found personal wealth.

Any advice provided by Investec Wealth & Investment is bespoke to the client concerned, therefore there is the ability to tailor the financial plan and the underlying investments to each specific client.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN.