You’ll have many decisions to make when you decide to sell or close your business. Some of those decisions will be; who to sell your business to, how to reduce your taxes, and how to generate income for the remainder of your life from these assets. You may be surprised to learn that some of those decisions were already made 5 or 10 years by your earlier decisions.
For instance, did you know there are only five choices for exiting your business?
Sell it to someone in your family.
Sell it to someone in your business.
Sell it to someone outside of your business.
Liquidate your business to invest the proceeds.
Hire a management team to run your business and live off of the excess revenue.
Each of those 5 strategies have unique pros and cons. Understanding how each solution works and how it relates to the unique requirements of your industry, your business, and your situation are critical to maximizing the value of your business.
To get the most benefit from the sale of your business you need to create your Exit Plan at least 5, preferably 10, years before you’re ready to sell. One of your critical decisions will be to decide which of the 5 Exit solutions works best for your situation. With a well-planned Exit strategy you can make the sale better for both you and your buyer. This same decision can also improve your tax reduction strategies as well as your income distribution solutions.
Do you have a business’ Exit Plan? Do you need to create or update your business Exit Plan? If yes, we’d be honored to help. Contact us for your complimentary consultation to help you make the most of your business retirement / redirection plan.