June 1, 2023
Succession is developing an exit strategy from your business. While you may think that time is a long way off, it is never too early to start thinking about how you will exit your business.
Succession Planning is a topic you either embrace spending time and resources on or think, “I will get to that eventually.” Consider the following two clients actively working toward transitioning out of their businesses.
The first has been planning his transition for many years. When he was young, and selling his company was a very distant thought, he made some decisions. He consulted CPAs and attorneys, spent some money, and laid the groundwork for the eventual sale of the business.
It was a lot like a farmer planting a seed in the ground. He can’t see it after the seed is planted. But he trusts with proper care and time, the seed will become a full-grown plant to be harvested and sold.
Because of the decisions this client made decades ago, he has many options to exit his company successfully while maximizing the value paid to him.
The other client thought about succession planning but did not take any action. Now, in the twilight of his career, there is scrambling to create an exit strategy that will afford him the type of retirement he desires. The options are limited as compared to the first client, and the result may not be quite the same.
Once you begin thinking about it, start taking some action. Hire professionals and develop a plan. Your plan will change over time as your needs and dreams change. Your ability to work will come to an end; that is a certainty. How you transition into that phase of life is still being determined. To have a positive, successful result, you need to start now.
“Twelve years ago, Bowers did a great job assessing my financial needs. They provided me with an analysis of my current financial status and provided a forecast of my future needs. From this analysis, they assisted my attorney in putting together a financial plan for my estate. Because of this plan, I believe it had enriched my estate. After reviewing this plan 12 years later, I am very satisfied with the decisions I made. The work Bowers provided was excellent.”
Greg Cundiff, Chairman of the Board CGX, Inc.
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