The reality is that most businesses don’t sell; only about one in five businesses is successfully sold to a third party. In addition, less than 30% of businesses successfully transfer to the second generation. The sad truth is that most business owners are unable to successfully transfer their business to a third party or to the next generation and cash in on their hard work. And much of this is due to lack of planning. You don’t want your business transition to occur in probate court.
Business Legacy Strategies helps business owners create and implement a plan that allows them to successfully exit or transition the ownership of their businesses. In addition to creating the plan, we have the expertise to help you successfully execute the plan.
Internal transfer benefits
You may provide an opportunity to the people closest to you to own and run your business into the future.
By transferring internally to your managers, you get to avoid the incredible disruption that often accompanies a sale to an outsider.
More importantly, you get the flexibility to structure a transaction that is tailored to your personal timing, needs and, perhaps, has a high degree of tax efficiency.
All of these benefits sound wonderful but they come with a very large assumption – namely, the fact that the business will continue profitably without you. Planning for this transition will take time.
Selling your business
The most obvious exit option for many business owners is the sale of the business to another buyer, perhaps someone in the same industry. The immediate vision that forms is that someone else is going to take care of the problems that you currently face and they are going to pay you handsomely for the privilege of owning your business while you celebrate and dream of spending days in an idle manner, fulfilling the desires that you did not have time for previously.
Let’s take a look at a more realistic picture and why a sale may not be a panacea. Two primary questions arise. First, will the business sale be successful? And, next, what will you do with your time?
If your business is saleable, making the decision to engage in the planning process should be your first step.
Our Unique Approach
We provide specially trained quarterbacks and a proven process to deal with a business transition from start to finish. We provide the right expertise right when it’s needed. We manage and facilitate communication between key team members, who already share a process and speak a common language, to ensure a smooth transition process. Business Legacy Strategies offers staged deliverables, so that you are in control of what work will be done when and at what cost. We also provide numerous educational opportunities to help our clients understand the overall process of transition out of a business, empowering them through a greater sense of comfort and control.