Unfortunately, far too many individuals avoid the process of business succession planning, figuring that they will deal with it at some point in the future. Unfortunately, as many business owners can attest, there are numerous reasons why someone may need to depart a business suddenly. These include disability, death, retirement and other issues. Without having an appropriate business succession plan in place, the business may continue to struggle significantly.
Answer these questions below to learn whether or not your company is appropriately prepared for business succession planning. If you find yourself answering no to the majority of these questions, realize that you are not alone and that you could benefit from a meeting with a business succession planning attorney. Getting things organized now and initiating these processes can help your business significantly and give you a great deal of peace of mind about the future.
- Do you already have an identified successor for all of the key roles in your business?
- Have you defined the vision and the personal goals you have associated with transferring management and ownership of the company?
- Are there any family issues that could impede potential ownership and leadership decisions?
- Does your business succession plan also take into account key estate planning issues such as minimizing estate taxes?
- Do you have appropriate liquidity in the business in order to avoid a forced sale?
- Is there a contingency plan in case an existing business owner becomes unable to work sooner than anticipated?
- Is a buy-sell agreement already developed for transferring assets?
- Have you figured out yet whether or not you or any other individual is depending on the sale of the business to meet cash flow needs in retirement?
- Have you already had a business valuation conducted and viewed your company in the same way that a potential buyer would?
If you have not engaged in this process yet, it is not too late. Consult with a business succession planning attorney to learn more.