I recently heard a statistic that six to eight million businesses will change hands within the next 10 years! Wow! It’s time to do some succession planning and personal financial planning so you can secure a strong financial return and ensure the sustainability of your business. What other implications exist? What plans should you make now to be ready?
- Scary statistic: Only 20% of businesses actually sell according to a US Chamber of Commerce survey. Will yours?
- Five trillion in wealth will transfer by 2027 according to The New Retirementality, by Mitch Anthony. Will yours go where you intend?
- According to Family Business Succession Planning – The Final Test of Greatness by Craig Aronoff, Stephen McClure, John Ward, less than 1/3 of family businesses survive into the 2nd generation. Only 13% survive into the 3rd. What generation are you transitioning to? Are they ready?
You have invested so much in your business. Take some time now to assess the critical components that make your business saleable, and put a plan in place to increase the value and expand the marketability. Acting today can help ensure yours is one that actually sells.
Sit down with an estate planning attorney, wealth advisor and CPA to make sure the legal and financial structures for all of your assets (business ownership, insurance policies, retirement accounts, home(s), investments, etc.) align with your personal goals and priorities. Too often, the paperwork doesn’t match your goals and objectives. Make sure yours does.
Just because you are interested in transitioning your business to another family member does not mean that they are prepared to successfully take it over and lead it. Invite us in to do an assessment of your business and leadership team. We can identify your strengths and areas of risk against your strategic plan and build a plan to help you close the gaps.
As assets transition from one generation to the next, the best way to navigate through is to engage your key resources – wealth advisor, CPA, estate planning and business attorneys, business valuation experts and CEO coach/mentor to help you build a transition plan, begin implementation and commit to regular reviews. Taking these simple steps will ensure you are better prepared for the inevitable changes that will occur — in the economy, in your industry, the law, within your family priorities, and more.
If you need a referral to a strong wealth advisor, CPA, estate planning attorney, business attorney, or business valuation expert, give us a call. We’ll spend some time understanding your particular needs and interests and with your permission, make a referral to a resource we highly recommend. If you need a CEO Coach/mentor, we invite you to talk to us first.