Business Succession Planning
How much is my business worth in divorce? How can I prepare a business for sale when the owner is approaching retirement age? I just got an offer to sell my business, should I sell now?
Selling a business, the big moment as arrived for business owner -- what do I need to do to establish a value for the business? Business valuation can follow a large number of steps, depending on the complexity of the case and experience of the valuation professional.
In business retirement, a business owner should consider a business succession plan sooner rather than later: the first reason is taxes, upon the owner's death, estate taxes may be due. The failure to properly plan can also lead to a loss of control over final disposition of the company.
At Summit Business Valuation Associates, LLC, succession business planning is comprised of three basic steps:
1. Identify Your Goals
When you know your objectives, it becomes easier to develop a plan to pursue them. For instance, do you want future income from the business for you and your spouse? What level of involvement do you want in the business? Do you want to create a legacy for your family or charity? What are the values that you want to ensure, perhaps as they relate to your employees or community?
2. Determine Steps to Pursue Your Objectives
There are a number of tools to help you follow the goals you've identified. They may include buy/sell agreements, gifting shares, establishing a variety of trusts or even creating an employee stock ownership plan if your desire is that employees have an ownership stake in the future.
3. Implement the Plan
The execution step converts ideas into action. Once it's implemented, you should revisit the plan regularly to make sure it remains relevant in the face of changing circumstances, such as divorce, changes in business profitability or death to the stakeholder.
The courts and business owners with annual company revenues of between $350k and $10 million count on our accurate business value conclusions, affordably produced, starting at just $3,500.
Seeking to understand the economic value of a business? Contact Cliff Benjamin today.