Succession Planning

You’ve likely heard it said that the minute after you decide to purchase a business, you should give thought to a succession plan. That statement is often followed by a dramatic eye roll but we can tell you there is truth in that philosophy for lots of reasons.

Regardless of how far off you think that day is when you want to sell or transition, running your business as if you plan to sell for top dollar is just smart business strategy.

That’s where we can help. There are many questions that need to be asked when it comes to succession planning but you won’t have to go it alone! SSA can help answer these questions and more as we develop a plan that is right for you, your business, and your goals.

  1. How much money do you hope to receive from selling your business? Most businesses sell for a multiple of cash flow so your profit goals should reflect that concept.
  2. Who will buy your business? If it will be a family member, you will need to train that person to enhance the chances of a successful transition. Will you sell to an outside party? If so, how will you market your business? Will you use a business broker or attempt to self market?
  3. What is the anticipated timing for sale? Does this timing align with your personal objectives for retirement or other pursuits?
  4. How will the business acquisition be financed? Will you be willing to “carry” some of the purchase price? What is necessary to make the business sale attractive to an outside financing source?
  5. Do you understand the milestones and actions necessary to most favorably position the business for sale? Are these revisited at least annually?
  6. Do you have the right team in place to either purchase the business or enhance attraction to a buyer?

Are you willing to sell part of your business to allow you to “step away” and still maintain control and an income stream?