If you own a business, selling it requires extensive consideration and lengthy planning. For many business owners, the majority of their wealth is tied up in their business. And very few businesses actually sell, leaving business owners with few options for monetizing the value of their business and securing their wealth for future financial security.
As you get ready to retire, there may be several factors that will affect selling your business. For instance, you may be worried about forfeiting your income stream or feel trapped because your business funds a certain lifestyle. You may also have concerns about what you will do after you leave your business and may not feel fully informed about your options for making a strategic exit.
For all of these reasons, you should start working with a lawyer who handles estates and wills sooner rather than later. If you own a family business, one or more of the “five Ds” – disability, death, divorce, distress, and disagreement—can quickly derail your plans for a sound business exit strategy. Instead of looking at transferring your business to a family member, look at the overall value of your operation to make it more attractive and transferrable for a new owner.
Work with a lawyer who does estates and wills to secure contracts, instill an experienced management team, and create a sound succession plan to protect your business’ market value. You should plan on exiting your business when it is at peak value and when you still maintain control to depart on your terms.