A transition plan for your business outlines priorities, strategies and procedures for when the time comes (anticipated or not) for you change how much responsibility you take on. It protects your business’s future, the clients it serves and the employees it supports. It also ensures that your family is financially secure and helps protect them from uncertainty or prolonged disputes.
You might want to pass your company down the family line, sell it to a valued employee or a third party, or shut its doors for good. Or maybe you just want to reduce your role in its daily operations. Regardless of your choice, there are several things to consider when succession planning:
- Setting transition objectives – Do you want your business to continue without you?
- Assessment of financial needs – What lifestyle do you want after you step down?
- Business valuation – How much is your business worth?
- Growing your business value – How can you protect and increase that value?
- Contingency planning (“Plan B”) – What will you do if things don’t go to (original) plan?
- Sale of your business – How can you get the best sale price and handle the transaction?
- Transition of leadership – How (and to whom) will you hand over the reins?
- Wealth preservation planning – What are the best ways to make your money last in retirement?
At James Moore, we’ve helped business owners navigate these emotional decisions for over 50 years. We’ll work with your financial advisor, attorney and other professionals to make sure your plan is sound and everyone is on the same page.