As a successful business owner, you have likely spent the majority of your working life building a business. You have an emotional and financial attachment to the business. Succession planning is essential, whether you value making sure the business is in good hands when you retire or making sure you gain financial security when you exit the business.
Some of the key factors to consider when planning for your eventual departure from the business include:
- Tax implications: How will your preferred method of transferring the business upon your departure affect your tax burden? A collaborative effort between your attorney and CPA can minimize the tax impact.
- Time: When do you want to exit? This is important on at least two levels- 1) How much time do you have to plan and 2) Can the transfer occur gradually over multiple years or must it occur all at once?
- Financial implications: How much cash/income do you need the transfer to generate for you and when do you need it?
- Structure: Do you plan on transferring the business as a whole, or does it make more sense to sell the assets and let the business identity fade away?
Perhaps you would like to see your business passed on to your children one day, or maybe you are ready to get out now and need to sell your business. Maybe you plan to retire in five to ten years and are ready to plan for your exit. Regardless of where you are in your career or in the life cycle of your business, we can help you prepare for your inevitable exit.