Succession Planning Steps
One of the biggest career decisions a business owner will face is determining how they will exit or transition from their business. Whether a business owner is planning on retiring next year or ten years down the road, it is important to develop a thorough succession plan. There are seven general steps to take for a successful business exit.
Before you can develop a strategy, you must know what your objectives are, including your intended exit date, the desired business value, and the individuals or entities who will takeover or purchase the business.
Determine Business Value
Once you understand what you want your business value to be, it’s time to determine the actual value. At AFG, we can help you evaluate your business’ value. From there, you can determine the cash flow increase needed to meet your objectives.
Build the Value
The next step is to enhance the current value of your business by determining features that can increase the sales appeal.
Sell the Business
If you will sell your company to a third party, we can help you develop strategies designed to improve the opportunities for a successful sale and possible tactics to minimize taxes.
Rather than sell, you may choose to transfer ownership instead to a family member or employee. Often, this person may not have the financial resources to purchase the company, so it’s important to develop a strategy to ensure you receive the money you want from your business.
Create a Continuity Plan
Following, it’s important to align your business continuity plan with your personal goals.
Coordinate Your Personal Wealth
Lastly, you will want to coordinate your estate plan and wealth planning with your business succession plan. We strive to help you minimize taxes and invest properly to protect your wealth from gift, estate, and generation transfer taxes.