Succession Planning

You built a business; years spent working, sacrificing and creating something you care deeply about. Passing it down to the next generation may be a part of your overall plan.  How you go about it though, differs from owner to owner. Depending on your business type, your retirement plan and the next generation, you have a variety of options available. 
As you start thinking through your transition, some questions you will want to consider are: 
  • when do you want to be done working? 
  • when will this transition start? 
  • how much do you want to be paid for your business? 
  • will you be providing a discount on the value of the business?
  • will this sale be an immediate transfer or will it occur in phases? 
  • what taxes are you being incurring through the sale? 
  • what is being transferred with the business? 
  • can the intended successor afford to purchase the business? 
  • if you wish to provide for other beneficiaries in your estate plan, how will you treat them fairly?
  • was is your plan regarding long term care coverage? 
     
Though this list is by no means comprehensive, it will allow you to start developing your goals.