We recently advised a client David (53), owner/operator of a successful business providing professional services to the building and construction industry.

David had started thinking about retiring and believed all it would take is not getting out of bed to go to work. Until he spoke to us, David was looking forward to retirement. He was planning to sell his business to fund part of his retirement. He didn’t realise how the shortfall in his business value affected his future lifestyle. Based on his retirement plans, David’s Financial Adviser had estimated he would need $1.25 million in retirement assets at aged 60 to fund his lifestyle in retirement. His projected income earning retirement assets were calculated as $575,000 resulting in a shortfall of $650,000, far exceeding the current value of his business.

If David did nothing he would face:
• Accepting a lower standard of living at retirement
• Continuing working well past his desired retirement date

This case study highlights how the value of a business affects an owner’s future standard of living and how succession planning can be used to grow and realise business wealth to fund the shortfall.

Read the full case study here.