Business Sale & Succession
Business Sale & Succession
Protecting assets and owners of your business from liabilities that result from unfortunate circumstances.
It’s easy to overlook financial considerations when running a business.
What could possibly go wrong?
- Your partner(s) or family may not receive full value of your interest.
- Your business partner(s) may be left to run the business with your spouse or children who may not have the desire, or skills to participate.
- Lending institutions may trigger a default and the personal guarantees.
- The business may have difficulty maintaining financial commitments and liquidity.
- Loss of a key person in your business can cause severe loss of profit.
Complete Succession Planning takes 2 years.
How will you exit your business?
- Selling the business – Sell the business as a going concern.
- Passing the business on – Pass on the business to family members or other stakeholders.
- Merging – Merge the business with others.
- Liquidate – Liquidate the business and sell off assets.
- Forced closure – File for bankruptcy or a process of liquidation.
Key Factors to Consider
- What type of succession – partial or full?
- What is your timeframe?
- What are the key personnel changes?
- Do you have a strategy for skill retention?
- What are the legal ramifications, is there a buy-sell agreement, is a will in place?
- Is there a risk management contingency plan?
- Have you considered all financial strategies: retirement income, sale price, tax implications?
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