If you are like most business owners, 75 – 80% of your personal net worth is tied up in the value of your business, simply because over the years, your best investment return was your business.
In many instances, business owners are not prepared for the inevitable transition of management and ownership that is quickly approaching. Often, it’s only dealt with in emergency situations such as the death or illness of an owner or partner or when a new partnership is needed following a cash-flow crisis.
Time is required to monetize the value of your business into personal assets to ensure the funding for the next stage of your life, whether it is transferred or sold to family or a third party.
However, to achieve your financial goals, transition planning must go beyond maximizing the value of your business and facilitating its sale or transfer. It should include your future plans, your family’s financial needs, philanthropic goals, and the reduction of taxes. Asset and estate protection should also be included to safeguard your loved ones’ future in the event of your death or disability.
The end result will be a wealth management plan that will secure the future of your business and your family.
The best time to plan for business transition was yesterday. The next best time is now.