Business Leader campaign: What is the importance of wealth planning for entrepreneurs in 2022?

As a part of our campaign to support business leaders across the country in 2022, we reached out to Paul Beach, Head of Entrepreneurs at Arbuthnot Latham, to share his thoughts on the importance of wealth management and planning.

The benefits of good wealth planning before, during and after an exit can be enormous. From maximising tax efficiency to ensuring your loved ones are financially secure, creating a plan can help you feel in control and confident in yours – and your loved ones’ – financial futures. At Arbuthnot Latham, we have decades of experience supporting entrepreneurs through the exit process. Here are some insights from what we have seen on the ground.

Celebrate your success

Selling your business is a huge undertaking and takes a significant physical and emotional toll. For many, it also marks a major shift in day-to-day activities. Out of the entrepreneurs we speak to, 68% said their highest priority following an exit is to spend more time with friends and family. It is important to take some time to celebrate your success with your loved ones and colleagues – you have achieved a lot, and this should be recognised.

Consider wealth planning early

Our research shows that those who have exited a business are approximately seven times more likely to involve a private banker in the process than those who have yet to go through this process. As a business owner looking to exit, it is critical to prioritise your financial future, so that you have a plan in place to protect your wealth post-exit. It really helps to have the right team around you, including a network of family, friends, and advisors that you trust and respect.

Protect what (and who) is important to you

Coming into wealth suddenly can feel overwhelming. Cash flow modelling can help you understand how your wealth might be managed to generate growth and income over time. Using a variety of “what if” scenarios, you can assess the impact different events, such as retiring early or making a large purchase, or even welcoming (grand)children, may have on your long-term finances.

As you exit, it is also important to review tax position, your family protection provisions and update your will.

What is your purpose?

While the immediate after-effect of a sale can be exhilarating, waking on the Monday morning afterwards can take an emotional toil if you do not have a plan. You need to think about what is important to you and what your aims are.

If your sale takes you away from your business, it is important to have a plan as to how you will spend your time and with whom. For example, 47% of entrepreneurs we speak to are focused on having enough money to secure their lifestyle, while 32% want to retire early.

Other entrepreneurs might already be thinking of their next business idea or about investing in other companies. Others may want to ensure the financial security of those around them. In reality, while many business owners say they want to relax after an exit, 92% of entrepreneurs continue their involvement with the business world in some capacity.

Entrepreneurs might have different priorities and aims following an exit, but the most important contributing factor for success is planning ahead. While this may not seem like the glamourous side of an exit, it is critical to preserving and, ultimately, building wealth.

We want to hear from you!

As a part of the campaign, we want to get the views of our readership on the best practices for wealth management! Please email them over to and they will be featured below, in our newswire and on our social media channels.