Transitioning your business when you’re ready to leave can be complicated and costly if not planned carefully in advance. A succession plan is different for each business and for each business owner. This process becomes an integral component of the integrated Life Aligned® planning process in order to maximize your value and realize your vision for life after your business.
Some of the key components of this process involve:
- Reviewing your options in conjunction with your values and your other financial resources and plans
- Selecting and preparing for a successor, whether that be a family member or outside purchaser/investor
- Planning and funding the management buy-out
- Determining the value of the business and implementing strategies and systems to maximize value in advance of the succession
- Financing a succession plan in order to maximize wealth while also enabling the business to carry on as seamlessly as possible
- Understanding tax and legal issues
Your business ‘exit strategy’ is like any of your other investment strategies. It is best planned well in advance and preferably at or close to the outset of your new venture. Succession planning, like financial planning, is an ongoing process that is regularly updated and amended as circumstances change.