The prospect of planning ahead for retirement and the possible sale or transfer of a business raises a lot of questions. It is important to consider not only how succession planning affects you, but also how it will affect other stakeholders in the business and any future owners. Review these questions before putting together your business succession plan:
- Can the business be continued with family members or other employees, with power gradually being given over to them?
- Are there any other assets in place to help fund retirement outside of the sale of the business?
- If there are other assets in place, how could the sale of the business supplement and contribute towards those?
- If there are no other assets in place, is the business in a position to be sold? Do the analytics of the business indicate that there may be interested buyers or positive financial forecasts?
- If the business will be sold, would the proceeds be sufficient enough to cover your retirement for the remainder of your life?
All of these questions are important and worthwhile in your approach to business succession planning. Ready to get some help with this? Contact info@lawesq.net.