Sooner or later, you will want or need to sell your business. Preparing for this is referred to as succession planning and is a critical area that most business owners don’t think enough about.
Many business owners see their business as a significant contributor toward their retirement capital. Although some have managed to build retirement savings outside their business, many only have limited retirement savings, and are banking on a good sale price to fund their retirement years.
It is imperative to have a plan! Don’t leave it until poor health or some other life event forces you to make a move.
Bear in mind that your succession plan will need to cover two critical areas – management succession and ownership succession. It is one thing to sell a business and transfer the ownership to someone else, but if you want your business to continue to be successful, you need to consider and plan for management succession.
The majority of succession activity occurs from:
- The trade sale of the business
- Generational succession
- Employee/Management buy out
Each option has pros and cons, and we can help you navigate a path towards the best one for your business. A succession plan by Inspired will help you maximise the value of your business.
