In less than two years, Aelbrecht had turned a profit and was more than doubling the size of her business each year. The success was enough to attract the attention of a bigger rival, which subsequently acquired ProToGo, leaving its founder with a decision to make.
“When I started the business, I always felt like it was what I was going to do for the rest of my life,” says Aelbrecht. “But my feelings changed over time. I’m quite entrepreneurial and I had all these other ideas that I wanted to move on to at some point.”
What next?
Aelbrecht faced a dilemma common to many successful founders. What do you do after selling your business? While many choose to retire on the proceeds, others, like Aelbrecht, see it as a stepping stone to the next stage of their careers.
Some decide to start another venture, using the contacts and knowledge from their first business to inform their decisions when building something new. Others will focus on investments or philanthropy. Another option is to offer advice – often by becoming a board member or director – to the next generation of entrepreneurs.
It is important to remember that selling your business is a great achievement in itself. To build something from nothing to a point where someone is willing to pay a premium to acquire it is no mean feat.
That might mean you come into a substantial sum of money. If that happens after years of paying yourself through your business, it can require careful planning and investment to ensure you’re able to live the life you and your family want.
So much more to give
Some founders find themselves in a position where they still have much to offer the new owner of their business and will continue in some capacity. Aelbrecht did this, remaining as Operations Director at the company that acquired GoToPro.
In 2020, however, she decided to make a clean break and concentrate on her new consultancy business and building an investment network for female investors and entrepreneurs. She has taken lessons from her first business into her new ventures.
“I was also a sole founder, which is something I wouldn’t do again,” says Aelbrecht. “After the acquisition, I had partners. Sometimes you do need a sounding board. If things go wrong, you can deal with it together.”
Other options for remaining involved in your business include mentoring up-and-coming leaders or acting as an ambassador for the company. After all, who knows your business better than you do?
Key tax considerations
Anyone selling their business should be aware of the following tax considerations, especially if you are about to come into a substantial sum after the sale. It’s always worth a conversation with your St. James’s Place Partner for a better understanding of what you’re likely to encounter. The sooner you seek advice the better, as some planning can take time to implement.
Business Asset Disposal Relief: Formerly known as Entrepreneurs’ Relief, this allows the first £1 million of proceeds from a sale of a trading business to be taxed at 10% rather than the usual Capital Gains Tax rate of 20%. A spouse or civil partner can also claim the same relief under certain conditions, meaning proceeds of up to £2 million can be taxed at the lower rate.
Business Relief: A trading business typically qualifies for 100% Business Relief and can therefore be passed on free from Inheritance Tax (IHT) upon the death of the owner. Once you sell the business, however, you hold cash and therefore lose the exemption. IHT is charged at 40% on the portion of your estate above £325,000. It is therefore important to find a tax-efficient way to provide income.
After the sale, owners have 36 months to reinvest some or all the proceeds into other Business Relief-qualifying investments and assets and recover the business relief IHT exemption.
Seek advice
When going through a business sale and considering your options for after it happens, talk to your St. James’s Place Partner. They can provide guidance on the tax considerations and offer advice on what to do next.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
In less than two years, Aelbrecht had turned a profit and was more than doubling the size of her business each year. The success was enough to attract the attention of a bigger rival, which subsequently acquired ProToGo, leaving its founder with a decision to make.
“When I started the business, I always felt like it was what I was going to do for the rest of my life,” says Aelbrecht. “But my feelings changed over time. I’m quite entrepreneurial and I had all these other ideas that I wanted to move on to at some point.”
What next?
Aelbrecht faced a dilemma common to many successful founders. What do you do after selling your business? While many choose to retire on the proceeds, others, like Aelbrecht, see it as a stepping stone to the next stage of their careers.
Some decide to start another venture, using the contacts and knowledge from their first business to inform their decisions when building something new. Others will focus on investments or philanthropy. Another option is to offer advice – often by becoming a board member or director – to the next generation of entrepreneurs.
It is important to remember that selling your business is a great achievement in itself. To build something from nothing to a point where someone is willing to pay a premium to acquire it is no mean feat.
That might mean you come into a substantial sum of money. If that happens after years of paying yourself through your business, it can require careful planning and investment to ensure you’re able to live the life you and your family want.
So much more to give
Some founders find themselves in a position where they still have much to offer the new owner of their business and will continue in some capacity. Aelbrecht did this, remaining as Operations Director at the company that acquired GoToPro.
In 2020, however, she decided to make a clean break and concentrate on her new consultancy business and building an investment network for female investors and entrepreneurs. She has taken lessons from her first business into her new ventures.
“I was also a sole founder, which is something I wouldn’t do again,” says Aelbrecht. “After the acquisition, I had partners. Sometimes you do need a sounding board. If things go wrong, you can deal with it together.”
Other options for remaining involved in your business include mentoring up-and-coming leaders or acting as an ambassador for the company. After all, who knows your business better than you do?
Key tax considerations
Anyone selling their business should be aware of the following tax considerations, especially if you are about to come into a substantial sum after the sale. It’s always worth a conversation with your St. James’s Place Partner for a better understanding of what you’re likely to encounter. The sooner you seek advice the better, as some planning can take time to implement.
Business Asset Disposal Relief: Formerly known as Entrepreneurs’ Relief, this allows the first £1 million of proceeds from a sale of a trading business to be taxed at 10% rather than the usual Capital Gains Tax rate of 20%. A spouse or civil partner can also claim the same relief under certain conditions, meaning proceeds of up to £2 million can be taxed at the lower rate.
Business Relief: A trading business typically qualifies for 100% Business Relief and can therefore be passed on free from Inheritance Tax (IHT) upon the death of the owner. Once you sell the business, however, you hold cash and therefore lose the exemption. IHT is charged at 40% on the portion of your estate above £325,000. It is therefore important to find a tax-efficient way to provide income.
After the sale, owners have 36 months to reinvest some or all the proceeds into other Business Relief-qualifying investments and assets and recover the business relief IHT exemption.
Seek advice
When going through a business sale and considering your options for after it happens, talk to your St. James’s Place Partner. They can provide guidance on the tax considerations and offer advice on what to do next.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
In less than two years, Aelbrecht had turned a profit and was more than doubling the size of her business each year. The success was enough to attract the attention of a bigger rival, which subsequently acquired ProToGo, leaving its founder with a decision to make.
“When I started the business, I always felt like it was what I was going to do for the rest of my life,” says Aelbrecht. “But my feelings changed over time. I’m quite entrepreneurial and I had all these other ideas that I wanted to move on to at some point.”
What next?
Aelbrecht faced a dilemma common to many successful founders. What do you do after selling your business? While many choose to retire on the proceeds, others, like Aelbrecht, see it as a stepping stone to the next stage of their careers.
Some decide to start another venture, using the contacts and knowledge from their first business to inform their decisions when building something new. Others will focus on investments or philanthropy. Another option is to offer advice – often by becoming a board member or director – to the next generation of entrepreneurs.
It is important to remember that selling your business is a great achievement in itself. To build something from nothing to a point where someone is willing to pay a premium to acquire it is no mean feat.
That might mean you come into a substantial sum of money. If that happens after years of paying yourself through your business, it can require careful planning and investment to ensure you’re able to live the life you and your family want.
So much more to give
Some founders find themselves in a position where they still have much to offer the new owner of their business and will continue in some capacity. Aelbrecht did this, remaining as Operations Director at the company that acquired GoToPro.
In 2020, however, she decided to make a clean break and concentrate on her new consultancy business and building an investment network for female investors and entrepreneurs. She has taken lessons from her first business into her new ventures.
“I was also a sole founder, which is something I wouldn’t do again,” says Aelbrecht. “After the acquisition, I had partners. Sometimes you do need a sounding board. If things go wrong, you can deal with it together.”
Other options for remaining involved in your business include mentoring up-and-coming leaders or acting as an ambassador for the company. After all, who knows your business better than you do?
Key tax considerations
Anyone selling their business should be aware of the following tax considerations, especially if you are about to come into a substantial sum after the sale. It’s always worth a conversation with your St. James’s Place Partner for a better understanding of what you’re likely to encounter. The sooner you seek advice the better, as some planning can take time to implement.
Business Asset Disposal Relief: Formerly known as Entrepreneurs’ Relief, this allows the first £1 million of proceeds from a sale of a trading business to be taxed at 10% rather than the usual Capital Gains Tax rate of 20%. A spouse or civil partner can also claim the same relief under certain conditions, meaning proceeds of up to £2 million can be taxed at the lower rate.
Business Relief: A trading business typically qualifies for 100% Business Relief and can therefore be passed on free from Inheritance Tax (IHT) upon the death of the owner. Once you sell the business, however, you hold cash and therefore lose the exemption. IHT is charged at 40% on the portion of your estate above £325,000. It is therefore important to find a tax-efficient way to provide income.
After the sale, owners have 36 months to reinvest some or all the proceeds into other Business Relief-qualifying investments and assets and recover the business relief IHT exemption.
Seek advice
When going through a business sale and considering your options for after it happens, talk to your St. James’s Place Partner. They can provide guidance on the tax considerations and offer advice on what to do next.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
