Entrepreneurs urged to plan for identity shift after selling a business

Entrepreneurs preparing to sell their companies should plan for the personal aftermath of an exit as carefully as they plan valuation, taxes and deal terms, Morgan Stanley executive Mark Jansen said in a Fortune commentary. Jansen said advisers often hear from former owners who were surprised by how difficult life felt after a successful sale.

Jansen, executive director of Family Office Resources at Morgan Stanley, said the end of ownership can remove the daily structure, work relationships and sense of identity that a business provided for years. He argued that exit planning should begin before a transaction is close, because the transition can affect family life, social ties and long-term financial decisions.

The issue is likely to affect many owners. The Exit Planning Institute said 73% of business owners expect to leave their companies within the next 10 years, according to Jansen’s commentary. Edward Jones, working with Morning Consult and NEXT360 Partners, found in a 2024 survey that 64% of business owners had a succession plan, meaning about one-third did not, Jansen said.

Planning beyond the transaction

Jansen said many owners devote more effort to improving sale value and tax results than to preparing for the loss of the founder role. In his view, a strong exit plan should ask what the owner wants daily life to look like after closing, what role they may want with the company, and how they define success once the business is no longer their main project.

He advised owners to assess how closely their identity and calendar are tied to the company. He also said they should consider where community will come from after work relationships change, and begin family discussions about expectations, time and future liquidity before a sale forces those conversations.

Jansen said owners should also allow time before committing to a new venture, role or philanthropic project. He described the pause after a sale as a practical part of the transition rather than a sign that the exit has gone poorly.

Work ties and family roles can change

According to Jansen, a company often acts as a social system as well as an asset. Colleagues, clients and board members may form much of an owner’s daily community, and some of those relationships can weaken once shared responsibilities end.

Jansen said the adjustment at home can also be significant. More time with family may be welcome, he wrote, while also raising questions about roles, expectations, estate planning, wealth transfer and philanthropy after a liquidity event.

Financial plans shift after liquidity

Jansen said liquidity creates new choices for former owners, including a need to review spending that may once have been absorbed by the business. He said financial planning after a sale often moves toward questions of purpose, family support and giving, alongside asset allocation and diversification.

He also noted Morgan Stanley’s standard caution that asset allocation and diversification do not guarantee profit or protect against losses in falling markets. Morgan Stanley said the material was informational and was not tailored investment advice.

Jansen’s central recommendation was that owners treat the personal side of an exit as part of the plan rather than as an afterthought. He said former owners who give themselves time, build new communities and set new measures of success are better positioned for the chapter after the sale.

This story draws on original reporting from Fortune.