It is a very exciting process to have an idea, create a business using the idea and watch the business flourish through the years. For small and medium-size businesses, where the business owners are intimately involved in the business, it is crucial to have plan for the time when the owners want to close the business or no longer want to be directly involved in the business. Sometimes, the management and operation of business can be transferred to family members. Other times, there is no one who the business owner feels comfortable having in charge of the business if the owner is no longer closely involved on a daily basis. Whatever the situation, it is important to have an exit plan for your business that takes into account what will happen next.
Planning your Exit
Key considerations for your exit plan:
- Identify your personal and business goals for retirement.
- Do you want to sell the business? Transfer of the business to named successor?
- How much continuing involvement do you want in the business? For how long?
- Develop a formal training plan for your successor
- Do you want to cash out? If so, in what time period? If not, are you willing to keep an equity interest in the business and get cash over some period of years?
- Who would you to take over the business when you leave? What is the timetable for the transition? All at one time? Gradually?
- Developing a formal business succession plan.
Explore the Options with Us Regarding an Exit Plan for your Business
Each plan is carefully and personally developed for your specific needs. It is crucial that you ensure that you and your family are protected when it is time to leave your business and also consider selling or transferring ownership, disability or “forced exist” scenarios (bankruptcy, liquidation). Having a solid plan in place will help you to really enjoy your retirement when the time comes. Contact us to explore your options at (925) 463-9000 or send an email.
Lisa Wills of the Law Offices of Lisa D. Wills, is an experienced business law attorney in Pleasanton, California helping educate business owners on exit strategies and business succession. For quality and personal assistance guidance regarding your business, contact Lisa Wills, Law Offices of Lisa D. Wills at (925) 463-9000 or send an email.