Every closely held business will someday experience a transition of ownership and a transition of leadership. During these times the business is vulnerable to loss of value and income. These transitions are a certainty so it makes sense to prepare for them in advance.

Think inside the boxes! Do the planning inside the transition boxes and give it structure. It makes the work easier for owners and advisors. The work done in the boxes has three critical planning components; they are STRATEGIC, LEGAL & FINANCIAL. Good planning does not need to be complicated it just needs to be complete. Don’t overcomplicate the planning.

Take a look at the boxes:

  • PLANNED OWNERSHIP TRANSITION – What is the exit plan or end game? There are often several options so it is up to the owner(s) to decide what is best for all stakeholders. It is never too early to start thinking about the day that ownership of the business will transfer. Kicking the can down the road will only lead to fewer options and will likely cost more money.
  • PLANNED LEADERSHIP TRANSITION – Every successful business has excellent leaders. Leaders are not born, they need time to learn and grow.
  • UNPLANNED OWNERSHIP TRANSITION – Sometimes a life event occurs accelerating the timing of an ownership transfer.

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