Plenty of entrepreneurs and small business owners love what they do, making it hard to see the end of their time in the business. It’s a big reason why succession planning gets overlooked. But if you know that someday you’ll no longer be involved, you can do more to make your transition period successful.
Perhaps you want to sell your business because it’s simply time for you to retire or move on, or perhaps you have specific intentions regarding the money received from selling the company. Working with qualified professionals throughout this process can help you to protect the value in your business. Business owners often only have a single chance to get the sale of their company right, and failing to plan appropriately for your exit could cause significant losses in terms of estate tax implications and decreased profits from the sale.
Start by planning with the end in mind, such as thinking about succession planning options. Perhaps you don’t have anyone in your family that you wish to pass the company on to, but you are building a company to sell in the future. The end in mind may be gifting or selling the company to family members, selling to an outside third party or selling to employees. You may also be eligible to share to a partner in the business. But it is helpful to think about these well in advance even if you currently intend to stay in the business as long as possible.
Many people experience unforeseen events that may cause them to step out of the business sooner rather than later, and proactively planning for succession in your business is beneficial because it reduces the stress and questions asked during this period. Our dedicated Pasadena business succession planning lawyers have helped many business owners navigate this complex process to align with more personalized plans and strategies.
