Every business owner, at some point, will want to step away from his or her company for retirement. It is not a subject most like to dwell on, but it is something for which one should prepare. Creating an exit plan is simply an important part of the business planning process. It is not something that company owners in Georgia or elsewhere should delay.
Creating an exit strategy can be a bit of a challenge. Figuring out when to leave and how to leave is a tough choice. Whether one is looking to retire soon or just wants to be prepared for the future, there are a couple things that one can do to make his or her exit a little easier.
First, one will need to decide if the company will be sold or closed. Not too many people are keen on the idea of closing something they have worked so hard to build, but it is possible to close up shop and sell any assets. However, more money may be gained from a sale which could help one achieve his or her retirement goals. If a business is to be sold, one will need to make sure all financial records are organized and that an asset valuation is completed so a realistic sale price can be set.
Second, prepare to sell by gathering a list of those who may be interested in buying. This list could include partners, family members or competitors. Regardless of to whom one wants to sell, the process can be started several years in advance. By giving oneself time to figure out the details, when the transaction occurs and the transition begins, it can be a fairly smooth process for everyone involved.
There are many business owners in Georgia and elsewhere who are nearing the age where withdrawal from their companies makes sense. Those who are considering retirement in the next few years and who do not have succession plans in place will only help themselves by getting started on one now. An attorney with experience in business planning can help company owners plan their exits so it can be a swift and smooth process when the time comes.
Source: northbaybusinessjournal.com, "Ready to retire? Here are 4 tips for business succession", Jason Wong, April 14, 2017