My second article in Capital At Play magazine is live! Financing your business succession plan, part two of the business succession series. Contact me if you want a copy.
Here’s an excerpt:
Business Succession Plan
When I first ask successful business owners their plan for leaving their business, they often look at me quizzically and say, “Why should I plan on leaving my business, it’s going along great right now!” Then I ask them if they know the odds of their leaving the business one day. After a second they realize that there is a one-hundred percent certainty that at some point they will no longer own their business. “Well I guess I’ll leave it to my kids,” they often come back with.
“Great,” I respond according to script, “do your kids want to own the business, is there enough profit in your business to split with all your children, can all of your children get along well enough to run the business?” The conversation goes like this every time, seeing on their faces the realization of what the effects of their lack of succession planning might look like.
Why make a formal succession plan? Business owners should seek the maximum economic benefit of any transaction, including their exit from the business. When it’s time for you to leave, it’s also time to cash out the equity you’ve built over the years. Owners should plan not only for voluntary exits like retiring, but involuntary departures such as death or disability. Your exit needs to be planned well in advance to avoid that loss of value in the transition.
Hendersonville and WNC
Contact me if you have any questions on commercial leases or any other business transaction. In western North Carolina, Asheville, Waynesville, Hendersonville at (312) 671-6453.
Email me at: palermo@palermolaw.com.
Be sure to check out my other blog posts HERE. Be sure to listen to my podcasts with Matt Mittan at BizRadio.US