Do you have a plan to exit your business alive and well? Unfortunately many business owners do not have a well-planned exit strategy and end up losing significant dollars through the poor implementation of selling or transferring their business. The Family Firm Institute estimates that approximately one-third of family businesses will survive to the second generation, 12 percent will survive to the third and 3 percent will still be viable in the fourth generation and beyond.
Whether you want to pass your business down to a family member or sell it outright, proper succession planning is the key. A comprehensive plan will enable you to consider all the key factors when determining your company’s future. This will ensure that you can exit your business alive and well. Key components of any succession plan include:
Rea Strategic Solutions, one of the leading investment banking and valuation firms in the state, has customized services to assist you in determining your best exit strategy. These services range from finding out what your business is worth today and what changes you can make now to make it worth more in the future, to conducting strategic planning sessions to assist you in your exit strategies.
This article was originally published in Illuminations: Facts & Figures from people with a brighter way, a Rea & Associates enewsletter, 9/13/2006.
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.