What Should Private Equity-backed CEOs Do Before Exiting a Business?
Susie Hillier and Adam Turner Lay Out 5 Things Equity-backed CEOs Should Consider When Preparing for the Future.
In many ways we are culturally conditioned to avoid wealth as a topic, with many people believing that it is presumptuous to plan for money that has not yet arrived. But for private equity-backed CEOs, delaying planning could be of the costliest mistakes you can make.
Stonehage Fleming’s Wealth Planning team helps entrepreneurs, wealth creators and families manage their wealth and grow their assets through long-term, comprehensive strategies.
Our Head of Wealth Planning, Susie Hillier, is an honorary member of PepTalks, a group that empowers private equity-backed CEOs and CFOs with the skills, confidence and connections necessary for success. She uses her experience and expertise to advise PepTalks members on how to achieve their long-term financial goals.
Here, Susie and Wealth Planning Associate Director, Adam Turner, lay out the top five things private equity-backed CEOs should consider when preparing to exit a business.
The earlier you start preparation, the more control you’ll have over outcomes. Starting twelve months before a liquidity event might feel early, but often it is barely enough time to implement the planning required to protect, structure, and manage wealth effectively. Planning early allows for considered restructuring of shareholdings, thoughtful tax optimisation, and open family discussions rather than rushed, reactive decisions.
Define your financial and personal priorities, ask yourself about the kind of life you want post-exit and how the wealth will change life for you and your family. Cash flow modelling helps visualise various exit outcomes, expenditure scenarios, and ambitions. This builds clarity and confidence and helps avoid planning in a vacuum.
Susie Hillier, Wealth Planning Director, Stonehage Fleming UK.
Money transforms family dynamics, and one of the most overlooked steps in preparing for wealth is engaging your partner and/or family in structured, honest conversations around money. This helps to manage people’s expectations, airs differing views on risk, or ideas about how the money should be used head-off future problems or clashes. Without a discussion framework, these differences often lead to arguments or stress. This is also a good time to work out how open you want to be with your children; how much – if any – to gift to them and if, when or how to involve them in planning.
Susie Hillier, Wealth Planning Director, Stonehage Fleming UK.
Ask yourself what you want your money to do for your children. What kind of adults do you want them to become? Family engagement doesn’t necessarily mean complete transparency with every member of the household. Be intentional about who knows what, when, and how. For some families, that might mean preparing adult children with education and managed disclosures. For others, it might mean maintaining confidentiality until later in life.
Adam Turner, Wealth Planning Associate Director, Stonehage Fleming UK.
When the deal completes, wealth managers, tax planners, and legal advisers will be flooding your inbox with offers. Make sure to build a trusted team to avoid choosing under pressure. The best teams are those assembled in advance and are based on fit, independence, and experience.
Search for advisers who understand the nuances of private equity exits, high-net-worth structuring, and intergenerational planning. Choose professionals who are willing to challenge you, coordinate with one another, and put your long-term goals ahead of short-term assets under management. CEOs are used to leading teams in business. But when it comes to wealth, they often aren’t the right person to coordinate all the moving parts. That’s where we step in.
Susie Hillier, Wealth Planning Director, Stonehage Fleming UK.
The roles of structuring and tax are often underestimated as they are not immediately tangible, yet a well-structured plan could preserve millions both in your lifetime and for future generations. Without careful planning, you risk triggering unnecessary tax, locking up capital in inefficient vehicles, or missing out on allowances.
Effective structuring requires time and collaboration. That might include reorganising shareholdings, setting up trusts, planning gifts to family members, or using UK-approved wrappers like ISAs and pensions. In some cases, clients consider residency planning or international structuring. Whatever the case, consider planning as early as possible to ensure your team can integrate it with your personal goals. It’s remarkable how much value can be preserved - often in the millions - through planning alone, without even changing the investment strategy.
Adam Turner, Wealth Planning Associate Director, Stonehage Fleming UK.
Newfound wealth brings a surge of attention, offers, and temptations. Our experience has shown us that individuals will be approached by well-meaning friends, family, and acquaintances with business proposals or investment ideas. Although you may feel pressure to accept quickly, you might regret acting with haste. People feel flattered. They invest in things out of guilt or excitement. But in my experience, the vast majority of those ideas fail. You need time to breathe and reflect.
Many underestimate the psychological impact of the exit, the complexity of post-deal planning - some people feel that they have lost their sense of identity and purpose, others struggle with anxiety or decision fatigue in the face of so many new options. It can take time to recalibrate. Whatever the situation, talking to a team you have established before the onslaught of change will stand you in good stead. With them you can build systems to protect you: an advisory filter, a pause mechanism to use before major decisions, and a clear investment philosophy. Understand where your vulnerabilities lie and put guardrails in place.
Susie Hillier, Wealth Planning Director, Stonehage Fleming UK.