What Current Trends Should People Know About Business Succession Planning?

family estate

Any business owner should engage in the process of business succession planning, but likely has questions about whether or not it’s the right time to sell their company now. Business owners are facing unique challenges in today’s market, but the truth is that business succession planning can be beneficial at any point in time.

Some of the biggest challenges facing current company owners that lead them to think about selling their company or transitioning out now include a shortage of talent, high interest rates and the possibility of economic uncertainty or downturn. Despite the current economic conditions, however, the market has remained relatively active.

Right now the following marketplace conditions should be taken into consideration for anyone thinking about establishing their business succession plan, particularly if they intend to move on transitioning or selling their business shortly. These include:

  • Slower times to get to deal closure as a result of contingent considerations and the overall economic uncertainty.
  • A strong appetite for transactions overall, since many corporations and private equity firms are continuing to look for new opportunities to acquire or consolidate with their strong cash reserves.
  • Employee equity programs have gained increasing traction as a way of rewarding employees for investing in the future success of a business.

The truth is that there’s no one size fits all solution to determine whether or not it’s the right time for you to sell your business.

Your company is unique, but multiple indicators can show you that it may be time to start preparing it for sale, including if your business is performing consistently well, if the financial projections are expected to continue, if you’ve hit key milestones such as wanting to spend time with your family, and the active external market. For more about the process of business succession planning, contact our firm. Our Pasadena estate planners help with creating your business succession plan.

Request A Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.