Ever thought of transitioning your business? To a family member? To a 3rd party or to your management? It is a BIG decision, we get it and have you covered.
Why a Succession Plan is Vital
Planning to pass your hard earned company on to family or business, or perhaps an employee interested in taking over? We understand. Let us help you simultaneously minimize your closing costs while maximizing your sale proceeds. A well thought out succession plan is essential for small to medium sized businesses and family-owned endeavors.
No one understands your company the way you do; therefore, expect your successor to undergo some transition time, even a potential learning curve. They will need to prove that they are able to lead the company once you are no longer involved. Key items to consider include:
- Timing the transfer of the business to minimize tax
- Deciding on a successor who is the right fit for your business
- Figuring out if you will remain as a consultant for a certain time period
- Whether or not a family trust or holding company can be beneficial to the transition
By taking the time to prepare and implement a succession strategy, you can rest assured the company will be in adequate hands once you retire. This will help to ensure the best possible end result for every party involved. Getting the facts down ahead of time can make it easier to decide when the most beneficial time to sell will be.
Develop a Plan for Post Retirement
Retiring can be an emotional and frightening concept to embrace for some individuals; especially those who have lived and breathed their business for numerous years. Take some time to explore what you will be doing once your official retirement begins.
Preparing your after work plan ahead of time can often make the choice to retire much easier. Objectively analyzing your business details when you still have some time can help you determine the best year to sell your business. Pre-planning can ensure that you receive the value you expect, instead of settling for less.
Why Is It the Right Time for You to Sell?
In order to make sure that you are selling because the situation is right for you, some soul searching is required. Get to the heart of why you are thinking about selling by asking yourself the following questions:
- Am I still excited to go to work every morning?
- Am I still passionate about my business?
- Am I still influenced by the financial motivators that give me the determination to succeed?
- Am I feeling exhausted and tired?
- Are my interests the same or have they changed?
It is common for businesses to thrive when owners feel motivated and energetic. If however, you are drained and or moving onto other interests, both your business and you can suffer. Answering these questions can help determine if it is time to sell your business.