You’ve worked hard to create your successful business. Now you would like to maintain the income, perks, and lifestyle.
Succession planning enables you to continue to enjoy the financial security and lifestyle you created. And it can provide a bright and challenging future for you children.
Here are a few of the questions we encounter.
When should I start?
Since succession planning involves several steps. It is better to start earlier than later. 3-5 years is a good average. Most noteworthy is the successor’s retirement time line and financial condition. These realities dictate the timing of the succession process.
Doesn’t my business have to be large?
It certainly does not. Large corporations engage in a unique type of succession planning to replace key management people. Corporate succession planning is not intended to transfer the ownership and potential of the company. Professional and personal service companies as well as manufacturing and retail establishments are great candidates.
Why not just sell?
There are several reason why selling your business might not be the best strategy.
- Especially relevant, your successor payments could easily eclipse the sale price over time.
- The improvements in operations, profitability and product/service lines provided by the heir consequently increase successor payments.
- Succession provides the opportunity to remain active and encourages a rich and vibrant relationship.
- Succession planning allows your heirs to operate your successful business while providing financial security.
What’s in it for the players?
First of all the value of the company could allow the successor to maintain the income and lifestyle currently being enjoyed.
The qualified heir moves into a top management role resulting in a good salary with lifestyle and family benefits as well.
For answers to specific questions, or if you would like to explore your exit strategy, contact us now to arrange your complimentary consultation.