- How you would prefer to transition – sell, pass on to family, etc
- What you want to do after transition – specifically, so you can set a budget for it
- Just how much money you will need to leave with to make your post transition plans a reality – not just ‘as much as I can get’
- When you want to go – this determines how much time you have left to make things happen in the business Plan HOW you are going to make it happen
Strategies need to be assessed and specific plans developed for how they will happen. For instance, precisely how to structure the sale to a third party for top price after taxes; or just how you will transfer your business to family members, co-owners, or employees while paying the least possible taxes and receiving the greatest financial security.
The obvious option may not necessarily be the best. Structured withdrawals staggered over a number of years where the owner takes less than market price up front but remains under contract for some time to help out during changeover, maybe in a part time capacity, can add up to a bigger sum than simply taking the first cheque offered. That’s the value of planning things out.
- More profit
- Higher efficiency
- Greater peace of mind
- Clearer focus
To develop a viable transition plan professional guidance is essential. At Inform Consulting Group, our Business Transition Program can help you plan for your smooth and profitable exit from your business.