May 7, 2025
For many mid-sized business owners, the sale of a business is the culmination of years—or even decades—of hard work, risk-taking, and strategic decision-making. But as transformational as a business exit can be, it also brings a new set of challenges: protecting the wealth you’ve created.
Too often, owners focus exclusively on the sale price, overlooking critical post-exit strategies—particularly when it comes to insurance and wealth protection. That’s where expert guidance comes in. The best M&A advisors work closely with wealth managers and insurance professionals to develop a cohesive, tax-efficient, and future-proof plan for your financial life after the sale.
With that in mind, here are six key insurance strategies to consider as you prepare for—and transition through—a business exit:
Insurance planning shouldn’t be an afterthought. Ideally, you should begin working with a wealth advisor and insurance expert well before your business hits the market. That’s because a proactive strategy ensures your personal financial plan aligns with the deal structure and timing of the sale.
Your M&A advisor plays a vital role here—by collaborating with financial professionals (like Woodbridge does via its parent company Mariner Wealth Advisors), they can structure the deal to account for your long-term wealth goals, minimize tax exposure, and ensure insurance tools are deployed effectively.
A successful exit may result in a significant uptick in your personal net worth, often creating new estate planning challenges. Life insurance can be a powerful tool to:
Wealth advisors and insurance specialists can recommend permanent life insurance policies that build cash value over time and offer flexibility as your needs evolve post-exit.
With greater wealth comes greater visibility—and often, greater risk, so bear in mind that personal liability claims can increase after a high-profile business sale. Therefore, umbrella liability insurance, directors and officers (D&O) coverage (if you’re still serving on boards), and even cyber insurance are increasingly relevant for business sellers.
Insurance experts working alongside your M&A and wealth advisors can identify exposure points and craft a layered protection plan tailored to your risk profile.
If you’re staying on in an advisory or transitional role after the sale of your business, you may still be considered a key person. Key-person insurance protects the new owners if something happens to you, and it can also be structured to benefit your estate and/or heirs.
Additionally, if the sale involves earn-outs or partial equity rollover, ensuring buy-sell agreements are backed by insurance can mitigate future disputes and secure your interests.
Philanthropy is an increasingly common goal for business sellers. Life insurance can fund charitable trusts or foundations in a tax-efficient way, allowing you to leave a legacy while reducing your taxable estate.
Advisors can coordinate these efforts to align with your values and financial planning objectives—whether that means supporting causes close to your heart or engaging in strategic giving that offers both impact and tax advantages.
One of the most common mistakes owners make during a business exit is working with advisors in silos. A top-tier M&A advisor understands that protecting your wealth isn’t just about the transaction—it’s about the life you want after it.
That’s why a seasoned M&A advisor will bring a wealth manager and insurance specialist to the table early in the process to align strategies, coordinate tax planning, and build a robust, future-focused financial architecture for the sale of your business.
Bottom line: when your M&A, wealth, tax and insurance advisors are in sync, your exit becomes more than a transaction—it becomes a launchpad for generational wealth, peace of mind, and financial freedom.
Selling your business is a major milestone; with thoughtful insurance planning and a collaborative advisory team, you can protect what you’ve built and position yourself—and your family—for lasting success.
Ready to protect your legacy? Talk to one of our M&A experts about how Woodbridge works with our parent company, Mariner Wealth Advisors, to generate the long-lasting wealth from the sale of your business.
ENDS.