Why did Mr Smith get in touch with Beaufort Financial?

Mr Smith was approaching 65 and had been running his own haulage business for over 25 years. He got in touch with us because he was ready to retire but could not see how this was going to be achieved successfully. Unfortunately, this was around the time of the 2008 financial crash and he was unable to find a buyer for the business. Mr Smith’s nephew worked in the business and had expressed an interest in purchasing it but was unable to get a loan from any banks at this time.


What did Beaufort Financial advise?

We used a cashflow planning tool to see what wealth Mr Smith had built up to this point, along with his income and expenditure; a snap shot of where he was now and how this might look in the future. Most importantly, it enabled him to identify the amount of money he required to achieve his aims of retiring. The cashflow plan showed that Mr. Smith didn’t actually need any money from the sale of his business because he already had the financial security to sustain his desired lifestyle in retirement. Recognising that his nephew wanted to buy the business, we worked with his accountant and legal team to put together a loan agreement stating that Mr Smith’s nephew would purchase the business for an agreed price, which would be paid to his uncle in instalments on a regular basis, from the profits of the business. We also worked with Mr Smith’s nephew to produce his own cash flow plan to show the affordability of the business venture he was entering into. Three years later, the business had gone from strength to strength and the nephew was able to secure a bank loan, which he subsequently used to pay his uncle for the business in full.


How did Mr Smith benefit?

After 25 years of working hard on his own business, Mr Smith was able to achieve his dream of retiring when he was ready to stop working. Had he not sought our advice, he might have continued working without realising he could afford to retire! Even better, the business remains within the family, through totally affordable funding. Better still, all of the existing workforce retained their jobs.


What can we learn?

Mr Smith’s situation demonstrates the true value of cashflow planning in human terms. It also shows that cashflow planning isn’t just about planning for the future; it also demonstrates what clients can do with their wealth right now. In this case, Mr Smith was reassured that he didn’t have to sell his business in order to retire and his nephew was able to prove that he could afford to take out a bank loan to buy his uncle’s business. If you’re facing a similar situation to Mr Smith and would like to find out more about how we can help you, get in touch today!