Advice for Widows: What to Do When Your Business-Owning Spouse Passes Away

By Trip Holmes

As you can imagine, I’ve seen almost every situation over 35 years when it comes to people needing to sell a middle-market family business. I see new reasons all the time, which certainly keeps this business fresh for me year after year. But a situation I see all too often is that of the surviving spouse when a business owner has passed away.

An untimely death, whether it happens when the business owner is relatively young or approaching retirement age, comes with a lot to deal with, emotionally, spiritually, and financially. While handling your deceased spouse’s personal affairs—even with a great estate plan in place—can be overwhelming when placed alongside the other burdens that come along with their departure, dealing with a business left behind can be an altogether different level of complexity.

Many times, I find myself speaking with someone whose spouse has just passed. They’re trying to figure out just how to live without that love of their life for the first time in many years, and, yet, so many people are now dependent upon them to make good decisions during their greatest time of duress. Middle market companies without a succession plan often have executives, management, and employees left behind, who, while they respect that the spouse needs time to grieve, also need to know what’s going to happen to the business.

I have one overarching piece of advice for the newly-widowed out there, those of you who’ve just lost your entrepreneur spouse:  you’re not alone, and don’t try to handle everything yourself.  Once you’ve made that realization, it’s time to take a big, deep breath and assemble a team that can handle your spouse’s business and achieve their goals and yours.

Here are the key players on that team:

Business Broker/M&A Advisor:  At Sabre Capital, we have helped many widows address the business aspects of the untimely death of their spouse. While this often means using our vast network of contacts and marketing abilities to find a buyer for the business and guarantee the widow’s financial security, it can also mean helping surviving children take over the business or set up mechanisms for employees to take ownership. Just know that we have options at our disposal and can tailor a solution to fit your needs. 

Accountant: Your business accountant will play a huge role in getting your spouse’s business affairs settled. They will help with areas like valuation of the business and especially with the tax implications of any decisions that you and your children make in the wake of your spouse’s death.

Attorneys (Corporate and Estate):  A pair of legal professionals, your corporate attorney and estate planning attorney, will work hand-in-hand with us and your accountant to ensure that you are protected legally in all business matters and that your goals outlined in your estate plan are achieved in optimal ways that minimize your tax exposure and maximize the return on any sales or divestments.

Bankers and Financial Planners: Your commercial bankers know that business so well, and they can be quite pivotal in helping with the right due diligence documentation and tapping into their own network of entrepreneurs to assist in the event of a sale. Your financial planner, who has no doubt worked for years with your estate planning attorney, can see that any estate proceeds are funded into the appropriate investment vehicles and bank accounts to secure your long-term future.

As you can see, most of these advisors are more than likely part of your life already. While your spouse may have had a closer relationship with many of them, they will all stand ready to advance and protect your interests.  At Sabre Capital, we pride ourselves on a high-touch service, where you know we are present and working hard with you every step of the way to achieve your goals after your spouse passes away. In our position as the business broker, we not only do our own job of finding a buyer or aiding with the transition to new family members, but also effectively quarterback the team of advisors like bankers, accountants, attorneys, and financial planners. This value-added service means that you can spend more time properly grieving and sorting out the personal details with the other surviving family members.

Please don’t let the sudden passing of your business-owning spouse overwhelm you when there are people ready to help you every step of the way to a new tomorrow. Call us today to get started.