Family-owned business exit planning is like making a gameplan for the future. It’s all about figuring out how to pass on ownership and management of the business to the next generation or an appropriate party while making sure it stays successful in the long run. Some of the key components to exit planning include goal setting, financial planning, legal and tax analysis, continuity planning, and succession planning. These steps can be simple or intricate, depending on your style and comfort level, and could involve professional advisors if there are skills that you need to gain in your background. At a minimum, core values and a mission statement should be contemplated.
There are unique challenges where a business is family-owned, or several members of the family are involved in operations. There may be sensitive family dynamics or conflicting interests. There may be obstacles stemming from legal structures to practical considerations. Expect the unexpected in situations where formal rules and record-keeping are eschewed.
Read moreFamily-Owned Business Exit Planning: A Strategic Guide for Succession