14 Sep Around the Web: A Week in Summary
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A recent article from Flathead Beacon entitled “How Will You Exit Your Business?” discusses the several questions you should ask yourself in order to develop a successful exit strategy for your business.
If you own a business, you’ve always got a lot on your mind. But no matter how busy you are today; you need to think about tomorrow. Specifically, you’ll want to create an exit strategy for the day you want to move on from your business to a new phase in your life.
To develop this strategy, you’ll need to address these 5 key questions:
- How much do you need (or want) for your business?
- How much is your business worth?
- How can you close the gap between what you need and what your business is worth?
- Who will take over your business?
- Who can help you with your exit strategy?
A recent article from Tampa Bay Business Journal entitled “The Great Handover: Prepping For Succession Requires Careful Planning, Diverse Expertise” discusses the 3 key tips any business owner should think about when creating their exit plan out for their business.
When businesses undergo ownership changes, whether through a sale, inheritance or other form of transfer, there are crucial factors to consider. A well-executed and thoughtfully crafted succession plan holds immense importance for the long-term prosperity of the business, as well as the financial well-being of its owners and their families.
Consider the following 3 tips to ensure a successful exit plan:
- Walk before you run
Some of the more advanced aspects of a transition plan — such as determining business value, assessing economic and market conditions, obtaining financing, and finding a potential buyer—can be daunting if the basic documents and structures are not first well organized.
- Decide whether or not you are keeping the business in the family
A succession plan that involves transferring the family business to the next generation may be more complex than business owners realize. Determining which family members will take on which roles; accounting for partners, spouses, and offspring; working out details around the transfer and taxation of assets — all of these are things that must be addressed.
- Create you’re A-Team
A high-quality commercial banking team with experience in business valuation and exit strategy is one of the best ways business owners can increase their odds of success.