There’s a lot that goes into deciding it’s time for your next chapter when you own a business. You want to know what’s going to happen to it and the key people involved in that transition. This is documented in a business succession plan.
Selling your business requires a comprehensive business succession plan ideally created by an experienced business succession planning lawyer. After an extremely challenging 2020, many business owners might be thinking about making an exit because of the surge of buyers in the market and the possibility of increasing taxes. This has, for some, created the perfect storm for creating your business succession plan and executing it sooner rather than later.
One recent industry report shows that the pace of recovery has varied among sectors and companies but US business deal value and volume overall are up from 2020. Demand among buyers continue throughout the pandemic but there were very few businesses for sale on the market.
Many of those that were negatively impacted by the pandemic were waiting for opportunities to recover before selling. However, pent up consumer demand has meant that many of them have been able to bounce back faster than expected. This can create the perfect opportunity for you to determine what’s next in your business succession plan.
Even if you determine that now is not the right time to execute on a business succession plan, creating this document and the strategies to support a full transition to other company owners can benefit you by making it that much easier if and when a faster transition is required.