Every closely-held business owner will eventually be faced with succession planning issues. It is imperative that a proper plan is developed that not only takes into consideration the wishes of the owner, but also his or her family.

There are really only four succession options for any business owner: transferring the business to the next generations, selling it to management or forming an ESOP, selling it to unrelated parties or liquidation. Since these options each have numerous, complex issues, they need to be carefully analyzed and compared to the wishes of the owner to determine the best course of action.

Business owners who fully understand their succession options, set a course of action to implement the plan and seek assistance to ensure the plan is being implemented as desired will see optimal results. The professionals at Rea & Associates can develop a comprehensive succession plan which includes a baseline business valuation, exit strategy alternatives and the actual strategic plan document along with business and personal action plans in addition to providing guidance to help owners maneuver through this delicate and difficult process.

This article was originally published in Illuminations: Facts & Figures from people with a brighter way, a Rea & Associates enewsletter, 2/15/2006.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.
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