Many business owners do not have a succession plan. Why? Because they tend to be doers who do not devote the necessary time to thorough succession planning. Some may also avoid addressing the need due to the emotional implications of the business transfer process.
Yet experts agree that many advantages can be gained by carefully planning this major change in a company’s life.
Maximizing your company’s value
By making advance preparations, you send the message that your company’s long-term survival matters to you. This increases its value to those interested in acquiring it.
Increasing your company’s stability
Because you will have planned the particulars of your transition, your company’s finances will not be exposed to sudden fluctuations and its financial stability will be ensured.
Increasing your personal security and reducing the fiscal impact By taking the time to ensure your personal financial security and choosing from among various options that will help you minimize the fiscal impact of the transfer, you increase your wealth.
Smoothing the way for your family and employees By involving employees and your family members in the transfer process, you will obtain their cooperation and increase the likelihood they will understand your goals, accept the process and respect you for it.
Increasing your successor’s ability to perform his role
By planning for a transition period with your successor, you will help him understand your company’s culture and ways of doing business. You will also demonstrate your support for the new management team.
Where to start?
While each situation is unique, a process exists that makes it possible for you to choose and implement the best possible solution. Assisted by one of our transfer managers, you can achieve your goals and ensure a smooth transition by following these five steps:
