⌟ Business Transition
Developing a successful business is hard work. Long hours, constant worries, serious stress — all necessary and inescapable to building a profitable business that will provide you with the rewards you desire. But what do you do when you are contemplating a transition in your business? A business is like a safe. You lock up capital inside that safe — but how do you unlock it?
You need a unique and reliable plan.
We have developed a seven-step process that allows us to determine the objectives that should be accomplished, narrow down on the problem areas that need to be addressed once those objectives are determined, and provide a roadmap of planning solutions which will address those issues and achieve the goals desired.
Our Seven-Step Business Transition Process
- Setting your Transition Objectives to be accomplished in the Engagement
- Determining the Value of the Business for your particular Transition Objectives
- Preserving, Protecting and Promoting the Value of the Business
- Determining who will be parties to the Business Transition Plan
- Transferring the Business on an Owner Finance Basis — Pros and Cons
- Contingency Planning in case the plan does not go according to plan
- Wealth Transfer Planning – The Wealth Plan
Top Five Reasons Businesses Change Ownership
- A primary owner dies unexpectedly
- The owner is “tired” and is ready to retire
- An unexpected offer comes along
- A substantial loss in revenue
- The primary owner divorces
Q : How to create an exit strategy for a family business?
A: The exit strategy will be dependent upon the objective the business owner wants to accomplish. If it is to the family then a certain transition plan will be effective. If being sold to an outside buyer, then a certain amount of planning will need to be done prior to that sale.
Q : How to transfer business shares to family members?
A: Obviously, you can make outright gifts of stock to your family, but those could pose a problem. As a rule, we would make any inter vivos gifts in trust for the benefit of family members.
Q : What is a business succession plan?
A: A business succession plan is a plan by which the management and ownership of an existing business will take place.