How Will You Exit Your Business?
Even though there’s no one “right answer,” with regard to the succession plan you choose, there are a number of good options when it comes time to transferring your business interest:
- Gifting to family members
- Selling to employees or family members
- Creating an Employee Stock Ownership Plan (ESOP)
- Selling to a financial buyer
- Selling to a strategic buyer
Since these options each present numerous, complex issues, it’s imperative that you carefully analyze and discuss each potential option before arriving at your destination.
Leave On Your Terms
The truth is, you can either take steps now to leave your business on your own terms or you can let some other unforeseeable event determine when it's time.
Don't leave your future up to chance. Take a look at the options above, then:
- Understand the advantages and disadvantages associated with each option.
- Estimate the net after-tax proceeds you stand to obtain from each.
- Consider how your decision will impact the future of your family and your staff.
- Think about how you hope to spend your time once you leave the business.
- Have a dialogue with family members, key employees and advisors about your preferred exit strategy.
If you have plans to leave your business in the next five years or so, it's time to start considering your exit plan options. Email or call Tim McDaniel, CPA, ABV, ASA, CBA, director of consulting services, at 614.923.6532 to learn more.