What is Business Succession?
Business Succession is a process of identifying and developing people (either internal or external) and a plan, in order for your business to pass from you to another party.
One of the fundamental issues that every business should address is to plan for someone to succeed the owner in taking over the company regardless if the succession is planned or unplanned.
Seventy percent (70%) of all family owned businesses fail in succession to the next generation simply because of inadequate planning.
The following are some important questions to consider while creating your plan:
* Is my business a family business?
* What discord may be created in this planning?
* Is there something specialized that may require specific personal licenses to be sought?
* What are the tax implications of all who are involved?
* Can the business create a method of funding the succession?
* If the business is a family business, has the proper training been done for key positions?
* If I transition the business to family or another party, am I relying upon the proceeds for retirement income?
The preceding are just some basic questions everyone must ask, but some of the answers may create more complexities. At GBS, we are here to assist you with the basic principles of business succession planning, along with providing a financial road map for funding the transition and proceed planning.
There are many things that will impact the transition of a business. Carefully considering each possibility will relieve everyone of stress, and the potential discord that may come with this type of planning, especially when something triggers the execution unexpectedly.
Some studies indicate that transitioning a business can be just as stressful as a family divorce. Let’s take the time to work together and accomplish your goals. Life may still be difficult if and when that time comes; however, a well prepared plan makes the execution thereof less stressful on you. You can spend your time focusing on relationships as opposed to the business end.
What are your goals for your business when you want to retire? Take the first step and contact us and let's work together to help you realize your goals.
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